525 B Street’s unique parking advantage and recent renovations position 22-story building as potential value play in post-pandemic market
A prominent 22-story office tower in downtown San Diego’s B Street corridor has been listed for sale, offering investors what brokers describe as a “generational buying opportunity” in a market still recovering from pandemic-era disruptions.
The 457,434-square-foot building at 525 B Street, currently 55 percent occupied, is being marketed by CBRE on behalf of a seller affiliated with LaSalle Investment Management. While no specific asking price has been disclosed, the listing emphasizes the potential for buyers to acquire the asset at “historically low basis.”
The property’s standout feature is its exceptionally high parking ratio of 1.6 spaces per 1,000 rentable square feet—the highest among office buildings along the B Street corridor. This parking advantage generates over $3 million in annual revenue, representing nearly 46 percent of the building’s net operating income.
“New ownership will have a tremendous opportunity to drive asset value and increase cash flow by strategically managing parking contracts and increasing day use and transient parking,” according to the marketing materials prepared by CBRE’s team led by Matt Pourcho and Anthony DeLorenzo.
The building, originally constructed in 1969, underwent significant renovations between 2018 and 2019. More than $11 million was invested in tenant improvements and modernizing key building systems, including the lobby, elevators, fitness center, and mechanical infrastructure.
Approximately 40 percent of the current vacancy is described as being in “spec or near turn-key condition,” potentially reducing the time and cost required to attract new tenants.
The tower benefits from its positioning in the heart of San Diego’s downtown business district, with direct access to major freeways including I-5, SR-163, and Highway 94. The location provides connectivity to surrounding residential neighborhoods, offering tenants multiple commuting options including walking, biking, public transit, and driving.
The sale comes as San Diego’s downtown office market continues navigating the post-pandemic landscape that has challenged urban office properties nationwide. However, the marketing materials suggest that “recapitalizing and resetting the basis early in a recovery cycle will allow for greater asset and leasing flexibility.”
CBRE notes that 525 B Street has “consistently outperformed the broader downtown office market over the past decade,” potentially making it attractive to investors seeking stable cash flow with upside potential.
The CBRE team handling the transaction includes specialists across multiple disciplines, from capital markets advisors Matt Carlson and Hunter Rowe to leasing advisors Chuck Reiter, Tyler Jemmett, and Anna Barnes, along with debt and structured finance experts Scott Peterson and Michael Kolcum.
