SAN DIEGO — Zephyr Partners has acquired a 60,000-square-foot site on Broadway between 7th and 8th Avenues in Downtown San Diego for $21.1 million. This was one of the last available full blocks of space remaining in Downtown San Diego.
Zephyr plans to use the site to build a $250-million, mixed-use retail and residential community that contains two, 32-story towers. The development is designed to extend Downtown’s core, revitalizing the land between the Gaslamp Quarter and Financial District. It will be the first mixed-use, high-rise project since the recession, Zephyr notes.
The property currently contains underutilized retail, parking and office space that will be demolished. The original eight-property portfolio was built in the 1950s and had fallen into disrepair over the past 30 years.
Zephyr also recently acquired the Banker’s Hill condo project at nearby 2850 6th Ave. The company plans to build 60 high-end luxury condominiums on the site, which should be completed in 2015.
George Smith Partners arranged $12.7 million in pre-development financing for the Broadway project. The interest-only loan carries a large interest reserve. It is priced at 6.5 percent for two years with a one-year extension.