Irvine Company Sells Its Final San Diego Office Tower for 60% Discount: Updated

Donald Bren’s Irvine Company has traded its last office tower in Downtown San Diego at a major loss compared to its 2006 purchase price, capping the firm’s move to pivot out of Downtown San Diego’s office market. 

Saca Development’s John and Payton Saca paid $120 million for One American Plaza, a 34-story office building at 600 West Broadway, according to The Real Deal. That’s less than half of the $300 million that Irvine Company spent to acquire the tower nearly two decades ago, per reports at the time. Hines and Rialto provided a $91 million financing package for the acquisition, arranged by Cushman & Wakefield’s Rob Rubano, J.P. LeVeque, Ernesto Sanchez and Lars Weston on behalf of Saca. 

“One America Plaza stands as a premier market-leading asset and this financing will support its continued success in the competitive San Diego office market,” Rubano said in a statement. 

Carolwood Estates’ Mick Partridge represented the buyers in the sale, while Eastdil Secured’s Adam Edwards represented Irvine. A spokesperson for Irvine did not immediately respond to a request for comment.

“Adding One America Plaza to our portfolio underscores our belief in the long-term strength of Downtown San Diego and our conviction that its brightest days are still ahead,” Payton Saca told Commercial Observer via email. “One America is in a location with constrained supply, strong fundamentals, and clear upside — and we’ve identified meaningful ways to enhance its value through amenity upgrades, active leasing, and hands-on management.”

The 650,000-square-foot One American Plaza was Irvine’s sole remaining office asset in Downtown San Diego, as the real estate titan divests from office and refocuses on its expansive mixed-use and multifamily business. In late 2024, Saca Development acquired Irvine’s 20-story tower at 101 West Broadway for $43.9 million, less than one-third of the $148.5 million Irvine acquired it for in 2005. The following month, Daniel Negari’s XYZ acquired Irvine’s 22-story tower at 225 Broadway for $48 million, or $8 million less than Irvine paid for it in 2005, records show. 

In August, XYZ likewise acquired the 21-story building at 501 West Broadway for $69 million, less than half of the $150 million Irvine paid for in 2006, per reports at the time. Irvine also recently traded San Diego’s Wells Fargo Tower and Symphony Towers for major haircuts. 

Irvine Company — already California’s largest apartment owner — is doubling down on housing. That includes development projects, such as a plan to build nearly 1,900 units at its Discovery Park campus in the company’s namesake city, or adaptive reuse, like its 700-unit conversion of office space at the MacArthur Court complex in Newport Beach. 

Nick Trombola can be reached at ntrombola@commercialobserver.com. 

Update: This story has been updated to reflect financing information tied to Saca’s acquisition.