Kilroy Realty is doubling down on the San Diego office market. The firm has acquired a 1.3-acre land site for $42 million in Downtown San Diego to build a 275,000-square-foot office tower. The property is directly adjacent to Kilroy's 220,000-square-foot 2100 Kettner development, illustrating the firm's bullishness on the market.

At four parcels, a land site of this size is a rare opportunity in the Downtown San Diego market. The property is located at 2045 Pacific Highway in San Diego's Little Italy neighborhood. Cushman & Wakefield's Kevin Nolen, Mike Novkov, Tim Winslow and Jason Kimmel represented the seller, Pacifica Companies, in the deal.

The brokerage team is excited about the prospects of this project, saying that Kilroy will bring much needed class-A office space to the area, which has had limited speculative office construction. It also signals confidence from a leading developer that the office market is poised to rebound, particularly in a technology and life science hub like San Diego.