Irvine Co.’s Departure Sets New Price Floor for Downtown San Diego Office Space

The exit of downtown’s former largest office landlord has handed the central business district to a new generation of repositioning-focused investors and reshaped the pricing dynamic in the area, observed GlobeSt in a report.

The Columbia District, with its proximity to amenities and waterfront views, commands premium rents, while the older buildings of the Core Financial District face a tougher position.

“The downtown high-rise office market and fresh capital are repositioning the central business district,” JLL Managing Director, Richard Gonor, told GlobeSt. “New owners aren’t just buying buildings. They’re buying location advantage and investing selectively with elevated amenities, modernized spaces and repositioning for today’s office users.”

Not everyone shared that optimism. Irvine Co.’s Donald Bren saw limited growth ahead for downtown San Diego and chose a gradual exit by settling for sale prices more than 50% below the original purchase value on buildings like One America Plaza. Instead, Irvine Co. redirected investment toward higher-growth submarkets, such as La Jolla and University Town Center.

Irvine Co.’s retreat from downtown San Diego began with Symphony Towers, which sold in September 2024 to the Taiwanese firm Formosa, Ltd. for $45.7 million (originally acquired for $134 million in 2003). That same year, two office towers followed — a 426,532-square-foot building at 101 W. Broadway — sold to Saca Development in November for $43.9 million, while the 363,102-square-foot 225 Broadway was purchased by XYZ.rent for $48 million in December. Both buildings changed hands at a fraction of the price that Irvine Co. paid for them in 2005 ($265 million in total).

In 2025, the organization also sold a 421,661-square-foot skyscraper at 501 W. Broadway to XYZ for $69 million. It was originally purchased for $150 million in 2006.

Finally, Irvine Co. sold its last downtown San Diego office building in October 2025 — the 34-story One America Plaza at 600 W. Broadway — to Saca Development for $120 million at a 60% loss from the original, $300 million purchase price.

However, the steep discounts aren’t limited to Irvine Co.’s portfolio: In 2024, Swift Real Estate Partners also sold its downtown San Diego office tower at 530 B St. to Ambient Communities for $27.5 million — well below the nearly $58 million that Swift paid for it just seven years earlier in 2017.