San Diego-based Zephyr Partners has paid a reported $21.1 million for a 60,000-square-foot block on Broadway between Seventh and Eighth avenues in downtown San Diego for a major mixed-use development.
Plans call for as much as 750,000 square feet of building expected to consist of two 40-story towers housing residential, boutique hotel and retail space. Groundbreaking is slated for the end of 2015. The proposed completion date wasn't immediately available.
The property, which Zephyr notes consists of underused retail, parking and office space, will be demolished to make way for the project.
Zephyr co-CEO Brad Termini said the project should revitalize an area between Gaslamp Quarter and the Financial District.
“This transaction offered a rare opportunity to acquire property in urban San Diego,” Termini said in a statement. “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 goal, Termini said, is to create an urban living and retail destination that residents, locals and tourists will enjoy.
The original eight-property portfolio was built in the 1950s and has fallen into disrepair over the past 30 years, Termini said.
“We are excited to further the renaissance of San Diego’s downtown core, and transform a once-neglected property into a vibrant and appealing community,” he said.
Termini estimated the project will cost more than $250 million, making it Zephyr’s largest development and one of the largest planned for downtown. It is Zephyr’s second condominium project; the company will also build 60 high-end condominiums at 2850 Sixth Ave., in Bankers Hill that will be completed in 2015.