SAN DIEGO--(BUSINESS WIRE)--San Diego-based real estate development and investment company Zephyr Partners has announced the $21.1 million off-market acquisition of one of the last remaining full blocks of available property in downtown San Diego – a 60,000-square-foot site on Broadway between 7th Ave. and 8th Ave.
The existing property, consisting of rundown and underutilized retail, parking and office space, will be demolished to make way for a mixed-use retail and residential community, designed to help extend downtown’s core and revitalize the land between the Gaslamp Quarter and Financial District.
According to Zephyr’s Co-CEO Brad Termini, the property was a compelling buy on many levels. “This transaction offered a rare opportunity to acquire property in urban San Diego,” said Termini. “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.”
Enabling Zephyr to construct the city’s first high-rise, mixed-use project since the recession, zoning of the site allows for development up to 750,000-square-feet with plans for two 40-floor towers housing residential, boutique hotel and retail space. Groundbreaking is slated for fourth quarter 2015.
The goal, says Termini, is to create a unique urban living and retail destination that residents, locals and tourists will enjoy. The reinvented community will attract new downtown residents and provide Gaslamp visitors a connection to a dynamic retail experience with a range of dining and shopping options.
The original eight-property portfolio was built in the 1950s and had fallen into disrepair over the last 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 estimates that the cost to complete the project will exceed $250 million, making it Zephyr’s biggest development and one of the largest currently planned for the downtown core. It is Zephyr’s second recently acquired condominium project, which also includes a Banker’s Hill property at 2850 Sixth Ave. The company will build 60 high-end, luxury condominiums on the site, to be completed in 2015.
About Zephyr Partners
Founded in 2008, Zephyr Partners is a San Diego-based real estate development and investment company committed to building high quality attached and detached homes, condominiums and luxury apartments. The company, co-founded by Brad Termini and Dane Chapin with a highly successful group of entrepreneurs working alongside them, has successfully completed and sold developments throughout San Diego County. For more information, visit www.zephyrpartners.com.