Passers-by stopping at the barriers to watch the flurry of digging at Broadway and Kettner may not know it but they are witness to a major milestone in the renaissance of the west end of downtown San Diego -- the start of Broadway 655, the first new Class A office building here since 1991.

A rendering of Lankford & Associates' Broadway 655

The 23-story granite and glass tower will open in June 2005, according to Rob Lankford, the developer who first envisioned creating this striking new landmark in 2000. Now, nearly four years later, civic leaders, planners, future tenants and others are as excited as Lankford about seeing the dirt finally fly and the dream become reality.

"While residential development has been strong during the past few years, we're pleased to see the office and commercial markets follow suit," says Peter Hall, president of Centre City Development Corp. (CCDC). "A successful downtown is a smart downtown, where jobs and housing are balanced. Broadway 655 will provide important employment opportunities while serving as the first major gateway to what will soon be a beautifully redeveloped western waterfront."

Rob Lankford, CEO of Lankford and Associates, second from right, leads a tour through the Broadway 655 site. Participants included (from left) Peter Hall, president of CCDC; Todd Johnson, National Electrical Benefit Fund, Washington, D.C.; Hal Sadler, chairman of CCDC; and Robert Greacen, Lewis Trust, London.

Lankford's firm, Lankford & Associates, had developed award-winning, Class-A structures in San Diego's Golden Triangle, Sacramento, Oakland and Denver, and research and development facilities in San Diego and Poway for major organizations such as The Scripps Research Institute and Nokia. He became intrigued with downtown while managing construction of the San Diego Hall of Justice.

"The suburban market was strong in 2000 but we started wondering why downtown hadn't had a new office building in a decade," Lankford said. "The ballpark activity had started, more residential development was on the drawing boards and San Diego seemed destined to become a very different city than it had ever been. We asked ourselves 'what's wrong with this picture?'"

Lankford met with Jason Hughes, of Irving Hughes, which represents the majority of downtown tenants. Hughes felt the downtown office market had become stale and built out.

"Downtown tenants needed another alternative," Hughes said. "Existing building owners were becoming less generous with their concession packages and more aggressive with their rental rates. If left unchecked, this shift would leave tenants with diminishing prospects. Many tenants would value a new building with great water views and be willing to pay for this value. The west end has great appeal. It is newer and cleaner, with better parking and views. It is closer to the water and mass transit. We felt tenants would line up for something new and striking."

Hughes introduced Lankford to Kettner and Broadway.

"I was convinced the location was a winner from day one," Lankford said. "Land costs were high, but I've always been one to develop property with understanding that land has relatively higher costs than other land because it's typically the best property."

Lankford launched several initiatives simultaneously: working with CCDC on the steps necessary to acquire the land, launching design with Carrier Johnson and introducing the site to potential tenants. Hughes, the tenant representative, was right about levels of interest.

In 2001, two of Hughes' clients -- Milberg Weiss Bershad Hynes & Lerach LLP and People First -- wrote letters of intent for almost 75 percent of the building. Then, the process hit several speed bumps. People First was acquired by Capital One, which would not need the space. The economy declined. Lankford and the team persevered over the next two years to keep the major elements moving forward: advancing the design, securing financing, acquiring the land, keeping the anchor tenant (Milberg Weiss, with seven floors) and securing others.

"We knew we had the best location in downtown and would attract tenants with the highest quality Class A office in the region when the economy turned," Lankford said. "Also, we would be a dozen years ahead of the next newest building in operating efficiencies and technology."

Interest in Broadway 655 increased as the economy began percolating. Best, Best & Krieger LLP, a law firm represented by Hughes, committed to a full floor in 2003 and signed its 10-year lease earlier this year.

"Beyond the spectacular design and views, we like the downtown location, which is in close proximity to the courts and all forms of transportation and services," said Jim Gilpin, managing partner of Best, Best & Krieger. "The floors are functional, providing greater flexibility for space planning and operating efficiency than found in most other buildings. We analyzed many options before making this decision and are excited about moving into an environment that will have such a positive impact on our people and our practice."

The 410,000-square-foot mixed-use development will include 356,000 square feet of office space, parking for 765 cars, 16,677 square feet of restaurant and retail space, and a four-story residential component on the E Street side. The location is convenient to the San Diego Hall of Justice, Federal Courts, Civic Center, the Trolley, Coaster, Amtrak, harbor, ferry, busses and freeways and within minutes of the airport, Gaslamp Quarter, Horton Plaza, San Diego Convention Center, Little Italy, residential, hotels, restaurants, performing arts and other entertainment.

John J. Stoia Jr., managing partner of Milberg Weiss, has been committed to Broadway 655 since 2001.

"We are excited to be the anchor tenant of the newest Class A office building in downtown San Diego," he said. "We eagerly await our occupancy in what will be one of the most technologically advanced and energy efficient buildings in the city. Our congratulations to Rob for his determination in making this building a reality."

Michael Johnson, managing partner of the project architect, Carrier Johnson, said Broadway 655 will provide striking architecture and stunning views, plus be people-oriented and flowing at the street level, unlike many other office buildings.

"The lobby, shops, restaurants, and corridors will be bright, light, and open," said Johnson. "From this pedestrian-friendly foundation, Broadway 655 will rise in dramatic fashion to a striking office building structure and spire."

Edward Holakiewicz, project architect from Carrier Johnson, said the design combines elements of San Diego's architectural heritage with new contemporary directions made possible, in part, by improved technology. The architects could make extensive use of glass because of high-performance glazing, which protects offices from temperature and sounds while reducing energy costs.

Holakiewicz said the internal design incorporates efficient and flexible mechanical distribution, the latest energy-saving cooling, heating, office lighting systems and state-of-the-art communications technology.

"Broadway 655 will be downtown's first 21st century office building," Lankford said. "We believe it will stand alone as the preferred business and professional address in the rapidly changing west end."

Equity partners include Lewis Trust Group Limited, London; National Electrical Benefit Fund (NEBF), Washington, D.C.; Carrier Johnson, project architects, San Diego; and Lankford & Associates. The partners were in San Diego recently for a tour of the construction site and meetings. Their enthusiasm was contagious.

Robert Greacen, of Lewis Trust Group, London, expressed optimism for the positive evolution of downtown San Diego in general and said Broadway 655 will stand out as an investment because of its location, design and quality.

"The businesses of the world are starting to take note of San Diego, particularly those involved in commerce in Asia and the Americas," Greacen said. "The area has the potential to evolve into an international hub for business around the Pacific Rim. Broadway 655, with its proximity to the harbor and all modes of transportation, will become an important address for those leading the charge."

Gable is CEO of Gable-Cook-Schmid Public Relations (GCS-PR) and former financial journalist with The Wall Street Journal and other publications.