Daily Business Report-Oct. 26, 2015
Downtown buildings up for sale
Downtown’s El Nino?
When it rains, it pours — at least that’s what is happening now for Downtown office building sales. Not only is 525 B Street (the Procopio building) actively taking purchase offers, so are 1010 Second Avenue (known as the Executive Complex) and 530 B Street (the Union Bank Building). 600 B Street would also like to sell – but needs to fill up first.
Why is this happening? Because there is a frenzy to purchase high-rise office buildings in the Central Business District. And big money is betting that Class B buildings (which all of those above are — except 1010, which is really a Class C Building) will increase in value as occupancy increases.
This is a movie we’ve all seen before, so unfortunately the end is predictable. We’ll have increased rents until there is very little vacancy, and then we’ll see crazy high rents until there is either over-building or a recession — or both. Then occupancy and rents collapse, and the dance starts all over again.
–– Jason Hughes, Hughes Marino
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City Keeping 42 Former
Redevelopment Agency Properties
Times of San Diego
Forty-two properties owned by San Diego’s former redevelopment agency — including the historic Balboa Theatre — will remain in public control following state approval of a management plan, the city attorney’s office announced Thursday.
In 2011 the state Legislature approved the dissolution of California’s 400-plus redevelopment authorities and required cities to develop plans for the properties involved or sell them. The California Department of Finance has now approved San Diego’s plan for its properties.
Included are 18 properties that will be transferred to the city for public uses, such as parks, streets, pedestrian walkways, and a future fire station. An additional 22 will be transferred to the city for future uses consistent with redevelopment objectives. Two more properties — including the Horton Plaza Urban Park and Plaza — will be transferred to the city in accordance with previous contracts
The properties are located in the neighborhoods of Barrio Logan, Centre City, Chollas View, City Heights, Liberty Station, Linda Vista, Mount Hope, North Park and Stockton.
“Our attorneys devoted more than 1,500 hours over three years to formulating the best strategy for managing these properties within the framework of the redevelopment dissolution laws, and to help protect the properties against state overreach,” said City Attorney Jan Goldsmith. “We can all be proud of their work on behalf of the city, and to the benefit of some of our oldest urban neighborhoods.”
The properties are listed online.
Legacy Stowe Business Center Sold for $55 Million
Sorrento West Properties Inc., a commercial building operator, has purchased Legacy Stowe Business Center in Poway from Pr Stowe LLC for $55 million.
The 13.82 acre campus consists of three buildings totaling 241,187 square feet. In 2001, it won the NAIOP Finest Award for best industrial/manufacturing project.
Kidder Mathews represented both the buyer and the seller in the transaction.
East Village Apartment Building Sells for $2.77 Million
An 18-unit apartment building at 1028 14th St. in East Village has sold for $2.77 million to Real Asymmetry Central LLC. The seller was Michigan Investors LLC.
The 8,424-square-foot, three-story building was built in 1925 and underwent a full renovation in 2006, which included new electrical, plumbing, roof, kitchens, bathrooms, light fixtures, and interior corridors. The property has one studio and 17 one-bedroom/one bath floor plans that average 418 square feet.
CBRE represented the buyer. The Michigan Investors represented themselves in the transaction.
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Del Mar resumes racing Thursday and runs through Nov. 29th.
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