One America Deal Signals Downtown San Diego Shift

Irvine Co. sold One America Plaza for $120M, a 60% loss from its 2006 purchase price of $300M.
The sale marks Irvine Co.’s full exit from downtown San Diego’s struggling office market.
Saca Development acquired the 34-story tower, betting on a future revival of the Broadway corridor.
Despite high vacancy rates downtown, One America Plaza remains 94% occupied, showing continued tenant demand for top-tier buildings.

Key Takeaways

A Final Exit

The sale of One America Plaza closes the book on the Irvine Co.’s downtown San Diego office holdings, reports CoStar. The Newport Beach-based commercial real estate giant is one of California’s largest property owners. Over the past year, it has offloaded all six of its downtown San Diego towers. The company cited a strategic shift in focus toward high-growth markets such as University Town Center (UTC), Chicago, and New York.

The move reflects a trend of institutional investors leaving struggling urban cores for more resilient suburban and mixed-use markets.

A Discount Deal

Saca Development, a Sacramento-based firm, paid $120M, or roughly $192 PSF, for the 34-story tower. That’s a 60% discount from what Irvine Co. paid in 2006, highlighting the broader valuation reset in downtown office markets.

Still, One America Plaza fetched the highest PSF price among recent downtown San Diego office transactions, due in part to its status as a Class A asset and current high occupancy rate.

Betting On A Comeback

Saca Development sees opportunity where others see risk. The firm called the purchase a “vote of confidence” in downtown’s potential, citing the building’s location on the Broadway corridor, which it believes is poised for revitalization.

Analysts say smaller, family-run firms like Saca are now stepping in to acquire well-located towers at steep discounts, betting on long-term recovery.

Looking Ahead

It’s unclear if One America Plaza will be repositioned, but strong occupancy offers stability in a soft downtown office market. Non-institutional buyers acquiring downtown offices may drive the next wave of urban redevelopment in cities like San Diego.

As for Irvine Co., expect more activity in UTC, where it already owns nearly half the office space and is pursuing mixed-use redevelopment that blends office, residential, and retail.

Why It Matters

The sale underscores how shifting market conditions are reshaping downtown office ownership. While institutional players exit, opportunistic buyers are stepping in—often at dramatic discounts. As vacancy rates remain high, the success of these bets may hinge on downtown’s ability to reinvent itself.