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Itâs the biggest news to hit San Diego in months. (No, not the latest travails concerning our ex-Mayor.) We asked a couple of development experts about the impact from the California Coastal Commissionâs unanimous approval of the $520M San Diego Convention Center expansion.  Gary London, president of The London Group Realty Advisors, says there were about 10 hotel projects in the pipeline in the Greater Downtown area--where the Convention Center expansion matters in terms of going forward--and their feasibility and momentum are greatly accelerated now. In addition, the ability to host larger conventions has a big impact in terms of the entire Downtown redevelopment program. (Star Trek fans = Dollars.) In particular, it'll be a catalyst for the East Village, home to Petco Park and directly adjacent to where the Convention Center's next phase is planned. The message to developers and the broader public? Whether you're buying a condo or starting a business, the East Village is very much alive with two huge anchors fueling the area's market dynamics.  Once completed, the expanded Convention Center will boast the West Coast's largest contiguous exhibit space, according to the San Diego Convention Center Corp. (They could do an exhibit where they display the whole Titanic.) Gary points out that the project still faces one legal challenge, but the Coastal Commission approval was the most important hurdle by far.  You can bet that Dealy Development president Perry Dealy (whom we snapped speaking at a Bisnow event) has been watching the events unfold. He's working on three hotels as part of the Manchester Pacific Gateway project, which will benefit from having the Convention Center's third phase move forward. The Convention Center is a key economic driver not only for Downtown but for the region, he says, noting that conventioneers who stay at a hotel pay TOT taxes that go directly to the City for discretionary spending, which can be used for police, fire, parks, roads, and such. He expects the demand to stay at waterfront and downtown hotels will go up with the third phase of the Convention Center, creating more demand for new hotels as well as filling the existing ones.  A key element of the project will be a five-acre rooftop park inspired by New York City's High Line, an unused elevated freight line was transformed into an urban park. Advocates for expanding the Convention Center argued in part that it was necessary to keep Comic-Con in town. (The park might be a good place to reenact the season finale of Game of Thrones.) |
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The Deal Sheet SALES Alan Tran of Mira Mesa Auto Techs bought a 4,741 SF building, 8636 Production Ave, from RMG Properties. The property was on the market for less than a week and fetched the highest price PSF in 2013 for planned industrial buildings, according to Colliers International's Mike Bench, who repped the buyer. CBRE's John Hundley and Rob Gunness repped the seller. *** Mark Ralph bought a 30k SF industrial building, 796 Energy Way in Chula Vista, for just under $1.7M to use as an office, storage, and distribution center for his restoration services company, Service Master Clean. Voit Real Estate Services' Nick Price and Art Bleier repped the buyer. A cell tower at the building provides additional income. *** LEASING Comm Care Health Network, d/b/a Matrix Med Network & Ascender Software, leased 10k SF of office space in the Rio Vista Building (8885 Rio San Diego Dr). Cassidy Turley's Duncan Dodd repped the tenant, while JLL's Tony Russell repped the landlord, MIG Real Estate.
Premier Insurance leased 1,726 SF of office space at 8303 Clairemont Mesa Blvd for its second San Diego location. Pacific Coast Commercial's Shirley Kanamu and Vince Provenzano repped the tenant, which plans to open additional sites in central and north County. Voit Real Estate Services' Spencer Kerrigan and Mark Caston repped the landlord, Diversified Properties. CONSTRUCTION & DEVELOPMENT Trammell Crow Residential bought 20 acres in Vista for the development of a $96M, 410-unit luxury apartment community. The TOD project is located directly across the street from the Melrose Drive Sprinter Station on two adjoining parcels at 1401 N Melrose Dr. With approvals already in place from the City of Vista, phased construction is slated to begin immediately for 10 three-story buildings and two community buildings. Completion is scheduled by year-end 2015. The development team includes Architects Orange, KHR Associates, Gillespie Moody Patterson, and Robin Wilson Interior Design. *** Behringer Harvard Multifamily REIT I launched construction of its first multifamily project in San Diego, a 444-unit luxury apartment community, in a JV with KNR Mission Gorge LLC. The project is located at 6850 Mission Gorge Rd in East Mission Valley and will feature amenities like resort-style pools and spas, 24-hour sports club, and outdoor media lounge. Cobalt Construction is the contractor. EXECUTIVE MOVES Phil Linton, formerly with Cassidy Turley, has hopped over to CBRE. He brings 30 years of experience to the UTC office, where he'll focus on owner-occupied office and industrial properties. |
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