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Downtown San Diego office building to be converted into residential condos

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The Fourth Avenue Corporate Center, an eight-level, 91,163-square-foot office building at 1551 Fourth Ave. in downtown San Diego, 92101, has been sold for $18.62 million and will be converted to residential condominiums.

Fourth Avenue Corporate Center

The buyer was 1515 Partners LLC, managed by Skandia Construction Services. Craig Gustafson is the manager of 1515 Partners, 514 Via de la Valle, Suite 300, Solana Beach, 92075.

The acquisition was financed with a $31 million construction loan from MacQuarie Bank Limited, an Australian public company. The new ownership said it has bought out a majority of the existing tenants so that the building can be converted to residential condominiums. Skandia Construction has plans to develop additional condos on the same block.

The seller of the property (assessor's parcel 533-384-17) was JM 43 LP with 1551 Fourth Avenue Inc. as general partner. Kevin DeHaan is vice president of 1551 Fourth.

JM 43 purchased the office building in October 2004 for $15.15 million with the intent to relocate its company to the Fourth Avenue location, but instead opted to stay in its current Mission Valley space. The office building was 50 percent leased at the time of the sale. The building was constructed in 1984 on a one-third-acre parcel.

Tony Russell and Chris Hobson of Grubb & Ellis|BRE Commercial represented JM 43 in the current sale transaction, as well as the October 2004 acquisition. Tim Winslow and Josh Vasbinder, also of Grubb & Ellis|BRE, represented the buyer in the current sale.

Leasing activity reported in 2004 included Leon Saad and Associates with 1,483 square feet for 36 months at $93,429; Catholic Charities of San Diego with 1,712 square feet for 36 months at $107,774; Condor Healthcare Services with 1,061 square feet for 36 months at $64,114; Design Atmosphere LLC with 1,047 square feet for 36 months at $65,961; Jimenes-Inzunza and Associates with 1,430 square feet for 60 months at $150,150; and Georgine Brave with 3,053 square feet for 72 months at $307,857.

JM 43 subsequently acquired the 26-unit apartment complex in Clairemont at 4290 Mount Abernathy Ave., San Diego, 92117, for $4.29 million.

The seller of the property (assessor's parcel 361-261-36) was the Ginsberg Family Partnership with Kenneth A. Ginsberg as general partner individually and as trustee of two trusts.

The two-story, approximately 18,600-square-foot apartment occupies two-thirds of an acre.

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