San Diego Business Journal

Downtown Office Tower Sold for $140.8M

Friday, March 22, 2013

Dallas-based Lone Star Funds has purchased First Allied Plaza on West Broadway in downtown San Diego for approximately $140.8 million, as part of its $621.5 million acquisition of a national office portfolio from Wereldhave USA, according to CoStar Group.

The office tower, at 655 W. Broadway, was built in 2005 at the southeast corner of West Broadway and Kettner Boulevard, and is among downtown’s largest office towers. It is part of a 31-property portfolio acquired by Lone Star Funds, with most of the properties in Texas and Virginia.

According to CoStar, the West Broadway tower’s 376,703 square feet are 86.7 percent leased by 140 tenants, including First Allied Securities Inc., Cisco Systems Inc., Deloitte Development LLC, and the law firm Robbins Geller Rudman & Dowd LLP.

Wereldhave USA, the New York-headquartered American division of Netherlands-based Wereldhave, has recently been selling off U.S. commercial properties. It previously sold DiamondView Tower in East Village for $121 million, to locally based Cruzan Monroe.

— SDBJ Staff Report