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October 31.2025

2 Minutes Read

One America Plaza Sale at $120M: A Shift in San Diego's Office Market

San Diego’s Tallest Tower Trades for $120M

The High Stakes Sale of One America Plaza

In a notable real estate transaction, the iconic One America Plaza, San Diego's tallest skyscraper, was sold by Irvine Company to Saca Development for $120 million. This sale marks a significant shift in the downtown San Diego office market as Irvine Co., a major player for nearly two decades, exits completely after a series of asset sales.

Loss Amid High Aspirations

Originally purchased for $300 million back in 2006, the recent deal means Irvine Co. took a nearly 60% loss on its investment. This reflects broader trends impacting urban office spaces, many of which are feeling the strain from changing market conditions in the wake of the pandemic. The office vacancy rate in San Diego hovered around 29%, showcasing the challenges within the downtown landscape.

Confidence in Revitalization

Despite initial concerns, Saca Development’s acquisition is portrayed as optimistic. Payton Saca, a principal at the firm, believes this investment represents a vote of confidence for the potential revitalization of the Broadway corridor. With plans to upgrade the building’s amenities and infrastructure, the firm aims to enhance the appeal of One America Plaza for current and future tenants.

Encouragement From Continued Demand

Interestingly, even with the overall low demand in the downtown area, One America Plaza is about 87% leased. This includes major tenants like the Office of the Attorney General of California, indicating that a demand for top-tier commercial real estate still exists amid the turmoil. The property also boasts significant potential with its LEED Gold certification and extensive parking facilities.

Conclusion: A New Phase Ahead

This sale signals a transformative moment not just for the building itself but for San Diego's downtown office market. As institutional investors step back from urban centers, smaller firms like Saca Development are poised to shape the future landscape. With several planned upgrades, One America Plaza could serve as a pivotal development amidst the ongoing quest for renewal in urban office spaces.

Commercial Real Estate Investment & Development

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One America Plaza Sale at $120M: A Shift in San Diego's Office Market

The High Stakes Sale of One America Plaza

Loss Amid High Aspirations

Confidence in Revitalization

Encouragement From Continued Demand

Conclusion: A New Phase Ahead

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