SAN DIEGO-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that Sumitomo Corp. of America just recently acquired 450B St. for $73 million in the heart of the business district of downtown San Diego. The office tower was renovated in 2009 and sits on over 1.22 acres of land.
“As we work toward our goal of expanding our US real estate investments in the next several years, this acquisition in San Diego helps us maintain our diverse portfolio of commercial office buildings across the country,” states Tomonori Wada, SVP of SCOA. “This was an attractive investment because the San Diego market has great future potential and demographics show a city which expects stable growth in employment with a limited supply of office space.”
The 20-story building features 290,000 square feet of office space which is currently 81% occupied with the major tenants being Bank of America and the County of San Diego. It is walking distance to the historical Gaslamp Quarter, Petco Park, San Diego Bay and minutes from San Diego International Airport.
According to a recent San Diego office report from Cassidy Turley, while some San Diego County office submarkets are still sluggish, the majority are more stable than they have been in years. That is according to Frank Wright, senior managing director with Cassidy Turley. “Direct vacancy has decreased in 23 of the county's 32 office submarkets compared to the same time a year ago.”
Sumitomo Corp has overseas investments as well as US including investments in Japan including Indonesia, China, Thailand, Singapore, UK and Brazil. The current real estate investment balance of Sumitomo Corp. is approximately $5 billion globally with $500 million outside Japan. By 2019, Sumitomo Corp. plans to expand their investments to $6 billion worldwide and double their investment to $1 billion outside Japan.
SCOA has acquired and sold commercial office buildings in cities including New York, Washington D.C., Honolulu, Los Angeles, Miami, San Francisco, Phoenix and Tempe. In the future, SCOA will also seek to play a role in supporting international investors who will invest in the US real estate market by utilizing their experience and expertise.
As GlobeSt.com previously reported, the company just recently relocated its operations in New York City to larger offices at 300 Madison Ave. in November. The Japanese-based firm signed an 11-year, 98,454-square-foot sublease from CIBC for the full third and fourth floors of the 35-story, 1.1-million-square-foot, 300 Madison Ave. building, which is owned by Brookfield Office Properties. The move from 600 Third Ave. allows Sumitomo to operate on two floors rather than on seven floors, according to the New York Post.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
