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12/22/16
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Kearny Real Estate Company and joint venture partner PCCP LLC closed on a $91.7 mil office buy in San Diego, purchasing the 364k sf ($252/sf) office component of Emerald Plaza from Deutsche Bank. The deal marks Kearny’s largest investment in San Diego to date.
Photo: www.shaperyenterprises.com |
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Built in 1990 by local developer and entrepreneur Sandy Sharpery at a cost of $150 mil, Emerald Plaza was the first, and continues to be one of the only true mixed-use developments in Downtown San Diego. Emerald Plaza includes a connected 436-room hotel now operated by Westin Hotel that was not part of the transaction.
Emerald Plaza encompasses a full city block at 402 W. Broadway, between Pacific Hwy and Front St in the heart of Downtown’s west side.The asset, which has been owned by Deutsche Bank since 2005, was 70 percent leased at closing. Kearny plans to make upgrades to the office lobby, elevators and individual floors of the building.
The office complex at Emerald Plaza is characterized by its distinctive hexagonal towers ranging from 20 to 30 stories, making it one of the tallest buildings in San Diego. Emerald Plaza is also one of the most recognizable on the San Diego skyline, especially in the evening, when the angled rooftops of the office buildings and hotel are illuminated creating eight hexagonal green neon halos.
In addition to being within walking distance to Downtown San Diego’s Trolley and Amtrak stations as well as the wide variety of entertainment, dining and retail amenities along the waterfront, Emerald Plaza also benefits from its proximity to San Diego’s new $555 mil State Courthouse. The new Courthouse, which is expected to open in May 2017, consolidates numerous State Court and department operations from San Diego County into a single modern facility.
Ryan Gallagher, Nick Psyllos, Nick Frasco and Michael Leggett with HFF represented the seller in the deal. CBRE’s Ryan Grant, Matt Carlson and Jeff Oesterblad will head up the leasing efforts at Emerald Plaza.
An active investor in San Diego, Kearny Real Estate recently completed the transformation of Mission Center Office Park, a 183k sf, atrium-style office complex in Mission Valley. Earlier this year Kearny sold Five Thirty B, a 232k sf office building in the financial District, following a successful repositioning of the former Union Bank Building in which occupancy was increased from 50 to 80 percent.
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