Wereldhave USA Buys San Diego’s DiamondView Tower for $161M

Wereldhave USA, a unit of a Dutch real estate property company, now owns the only two Class A, high-rise office towers to be built in downtown San Diego in the last 17 years after acquiring the 15-story DiamondView Tower for $161 million. The 305,255-square-foot tower, adjacent to Petco Park and located at 350 Tenth Ave., was sold by a partnership of Cisterra Partners, which developed the building, and The Prudential. The project broke ground in June 2005 and its first two tenants, Cox Communications/Channel 4 Studios and San Diego Interconnect Operated by Cox Media had moved in by late March, according to a March 30, 2007, CPN story. It is the first Class A office tower to be built next to a major league ballpark. DiamondView Tower has 12 floors, or 236,700 square feet, of Class A office space, an elaborate penthouse suite, and two floors, or about 68,500 square feet of retail. It is currently 91 percent leased and other tenants include Comerica Bank, Grubb & Ellis Inc. and CB Richard Ellis Inc., said Kraig Kristofferson, a CBRE broker who represented the buyer along with colleague Stacy Meronoff. Adam Edwards of EastDil Secured represented the seller. Wereldhave noted in a press release that because there is currently no other prime office properties under construction in the downtown San Diego market, “the difference between the acquisition price and the costs of comparable new office space is small.” It also cited the building’s prime location that is next to the ballpark, within walking distance of the San Diego Convention Center and about five miles from San Diego International Airport. Wereldhave said its policy is to acquire “newly built, prime property in knowledge based markets.” Kristofferson said CB Richard Ellis Inc. manages and leases the tower for Wereldhave. He told CPN the firm also handles leasing for Wereldhave’s other San Diego office tower, Advanced Equities Plaza, a 23-story, 380,000-square-foot office building, which Wereldhave USA bought last year for $210 million, according to a July 2, 2007, CPN article. Kristofferson and Meronoff were also part of the CBRE team that represented Wereldhave in the purchase of that building. Advanced Equities Plaza opened in 2005. Kristofferson told CPN they are the only two Class A office towers built since 1991. Advanced Equities Plaza was the first West Coast purchase for Wereldhave, which expanded into the United States in 1979. The company has a diversified real estate portfolio in seven countries. In the U.S., projects include an upscale, mixed-use lifestyle community in San Antonio, Texas, that would cost more than $300 million and include 1,400 luxury residences; two Class A office buildings with about 200,000 square feet; retail and a 150- to 200-room hotel with a luxury spa.