Daily Business Report: Wednesday, June 30, 2021
Kilroy Realty Corp. purchases Little Italy property
for $42 million to build Class A office development
Kilroy Realty Corp. has acquired a 1.3-acre property in Downtown’s Little Italy neighborhood for $42 million so it can build a 275,000-square-foot Class A office development. The seller was Pacifica Companies.
The site at 2045 Pacific Highway is adjacent to Kilroy Realty’s 220,000-square-foot2100 Kettner Blvd. project.
“This was a rare opportunity for an investor/developer to acquire an extremely well-located piece of property just off the waterfront in Downtown San Diego,” said Cushman & Wakefield’s Kevin Nolen. “In the last 15 years, there has been very limited new spec office deliveries specific to Little Italy, and Kilroy’s plans for this site will be a great and needed addition to the Class A inventory. The plans for this site also speak to the optimism to fulfill the need for office demand in this area looking ahead.
Kevin Nolen, Mike Novkov, Tim Winslow and Jason Kimmel with Cushman & Wakefield represented the seller in the transaction.
PHOTO: Aerial photo shows the property, shown in green, that was purchased by Kilroy Realty Corp.
California and Mexico pledge enhanced
collaboration on future port of entry
The governments of California and Mexico have signed an agreement reinforcing their mutual commitment to support the Otay Mesa East Port of Entryproject, a major cross-border infrastructure initiative that will greatly expand trade capacity along the busiest border region in the Western hemisphere and provide a fast, predictable and secure crossing with an average wait time goal of 20 minutes.
Under the pact, the California State Transportation Agency, the California Department of Transportation (Caltrans), the San Diego Association of Governments (SANDAG), and the Mexico Ministries of Foreign Relations, Communications and Transportation, and Finance and Public Credit commit to enhanced coordination and collaboration to open the 21st century port of entry by late 2024, providing a relief valve to the entire region with decreased congestion and wait times at the other San Diego border crossings.
Caltrans District 11 and SANDAG are laying the groundwork for the Otay Mesa East Port of Entry project by constructing the State Route 11 toll road, which will connect with new adjoining infrastructure in Mexico.
To date, the Otay Mesa East Port of Entry project has secured approximately $565 million in federal, state and local funding, with California contributing $267 million.
Element Biosciences closes $276 million
Series C financing
Element Biosciences, developer of a new DNA sequencing platform, announced the close of a $276 million Series C financing. New investors Janus Henderson Investors, Logos Capital,Meritech Capital Partners, Counterpoint Global (Morgan Stanley),and T. Rowe Price.
They joined existing investors Fidelity Management & Research Company, Foresite Capital, JS Capital Management LLC, RA Capital Advisors, and Venrock. With this latest investment, Element Biosciences has raised approximately $400 million.
“Element will provide researchers with innovative technology choices and more flexible tools for scientific exploration,” said Molly He, co-founder and chief executive officer of Element Biosciences. “We are working to realize our vision of dramatically expanding access to high quality, low cost, easy-to-use genomics tools.”
Scripps Howard Foundation honors San Diego police
officer with S.J. Dilenschneider Community Award
The Scripps Howard Foundation has chosen to award the inaugural S.J. Dilenschneider Community Award to Officer Chris Jones of the San Diego Police Department. The award recognizes an outstanding community leader in honor of the late S.J. Dilenschneider, a longtime executive with Scripps-Howard newspapers.
The award, including a $10,000 cash prize, will be given annually to recognize an individual or group of individuals in Scripps’ local communities. The individuals honored will exemplify the spirit of The E.W. Scripps Company, reflect Dilenschneider’s unique ability to raise the bar for all around him, and positively impact their community. Civility, leadership, community spirit and mentorship were among the criteria used to select the winner.
Jones is the community liaison officer for San Diego’s Southeast Division, one of the city’s most disadvantaged areas, where Jones also grew up. Through the organization he founded, The Young and Prosperous Foundation, Jones provides mentoring, career readiness, basketball coaching, college tours, juvenile probation programs, tutoring and more for the community’s youth. Jones personally funds many activities and projects and generously gives his time. Jones was selected for the 2021 S.J. Dilenschneider Community Award from among more than 30 nominees recommended by Scripps local television stations across the country.
Flock Freight plans new beachside
campus in Encinitas
North County software startup Flock Freight is expanding and building an unconventional tech campus in the coastal Encinitas beach community. The company just leased a 40,000-square-foot space on Coast Highway 101 — the former Whole Foods, which closed in 2017. The new space comes online just a few months after Flock Freight exited Solana Beach and snapped up the former Nixon building just steps away from the former retail space. The plan is to connect the two buildings by a walkway.
CEO Oren Zaslansky said it’s important to his team to work in a walkable, vibrant area. “We want a recruiting tool and a retention tool, and we want to be part of a really vibrant community, not in an office park,” he explained.
Port of San Diego to replenish sand at Kellogg Beach
To help protect Kellogg Beach in Point Loma from natural erosion, the Port of San Diego will be replenishing sand at the beach beginning on or shortly after Tuesday, July 6. The work is anticipated to be completed in two to three weeks.
Approximately 2,200 cubic yards of natural sand will be placed on the beach between Kellogg Street and McCall Street. The Port placed 2,000 cubic yards of sand on the beach in June 2020. In addition to protecting the beach from natural erosion, replenishing the sand will help maintain or improve the current slope of the beach into the water.
Kellogg Beach is located along the southwestern shoreline of the Shelter Island Yacht Basin. It is a popular area for recreation and serves many residents and visitors. The Port is working with the contractor to minimize impacts on the surrounding community and the environment. De La Fuente Construction Inc., based in National City is the project contractor.
For public safety, there will be limited beach access during construction hours, primarily between the hours of 7:30 a.m. and 4:30 p.m. Monday through Friday. The beach will be open in the evenings and on the weekends per posted beach hours.
Coomber Craft Wines expands into downtown Vista
From New York City to Santa Barbara to Vista, wineries are bucking the norm and opening up shop Downtown, giving residents and visitors alike the balance of “countryside” wine with a modern, artisanal feel. One local winemaker tapping into the urban market is Coomber Craft Wines, whose quaint and unique Oceanside tasting room has been such a hit that the winery is expanding into Downtown Vista.
The winery and tasting room, located at 344 Main St., is currently under construction, with an expected grand opening by the end of the year. It will also include nightly music on an outdoor covered patio.
The Coombers opened their first tasting room in Downtown Oceanside in 2019, which has been met with much fanfare. The dog-friendly neighborhood haunt — popular among locals and visitors alike — now includes live music on the covered patio seven nights a week.
Southwest Airlines begins nonstop flights
to Kona, Island of Hawaii and Lihue, Kauai
Southwest Airlines has began nonstop service to Kona, Island of Hawaii via Ellison Onizuka Kona International at Keahole Airport and Lihue, Kauai via Lihue Airport from San Diego International Airport. Flights to Kona operate Mondays, Wednesdays, Fridays, and Sundays until Sept. 27 when they increase to one flight daily. Flights to Lihue operate Tuesdays, Thursdays, and Saturdays until Sept. 27 when they increase to one flight daily. Southwest Airlines is also increasing service to Kahului, Maui from one flight daily to two flights daily.
“Southwest Airlines has been on a roll, adding new cities and additional flights to the beautiful islands of Hawaii,” said Kimberly Becker, San Diego County Regional Airport Authority president and CEO. “Whether you are heading to Hawaii or coming to San Diego, we welcome you and hope your stay is enjoyable. We appreciate Southwest Airlines as they continue to grow their nonstop routes from San Diego.”
