Jul 01, 2016
Zephyr Partners has acquired a full city block in Downtown San Diego for $21.1 million and plans to spend more than $250 million to build two 40-floor towers housing residential, boutique hotel and retail space. The San Diego-based real estate development and investment company said groundbreaking on the giant project is slated for fourth quarter 2015.
The original eight-property portfolio was built in the 1950s and had fallen into disrepair over the last 30 years, said Brad Termini, coCEO of Zephyr.
It holds rundown and underutilized retail, parking and office space — all of which will be demolished.
The site is on Broadway, between Seventh and Eighth avenues. Zoning allows for the development of up to 750,000 square feet.
“This transaction offered a rare opportunity to acquire property in urban San Diego,” said Termini. “The site spans a full city block, and is one of the few remaining underdeveloped areas in Downtown’s core. After studying the layout of other major urban areas such as Los Angeles, San Francisco and Seattle, we think this project will accelerate the transformation of Downtown San Diego, as it continues to evolve into a more walkable and accessible neighborhood.”
The project will be the city’s first high-rise, mixed-use project since the recession. The goal, said Termini, is to create a unique urban living and retail destination that residents, locals and tourists will enjoy.
It will be Zephyr Partners’ largest development. The company recently acquired property at 2850 Sixth Ave., where it will build 60 high-end, luxury condominiums, which will be completed in 2015, the company said.
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