Downtown skyscraper opens with pricey apartments, flashy amenities and traction with office tenants
Jul 26, 2024
Downtown’s skyline-defining West tower is officially open for business and leisure with people already living in some of the building’s pricey apartments and a handful of signed office tenants expected to move in next year.
The $510 million project at 1011 Union St. from developer Holland Partner Group uniquely marries three distinct uses — retail, residential and office — in an effort to shift downtown San Diego’s center of gravity west along Broadway.
The 37-story building’s array of amenities and artsy extras, starting with the decorative library in the lobby and extending to the lifeguard tower on the roof, are meant to ooze Southern California vibes.
The main lobby area at West features a decorative library and wave-like sculpture. (Alejandro Tamayo / The San Diego Union-Tribune)
The building’s many opportunities for coastal views help amplify the effect.
“The whole idea of West is West Coast culture, San Diego culture, trying to bring in the beach and the San Diego lifestyle ethos into a more commercial project,” said Brent Schertzer, who is the managing director for Holland.
Bounded by Broadway, Union, Front and C Street, West takes up one of three blocks that Holland and its partner, Japanese builder North America Sekisui House, acquired from the county in June 2019 after winning a bid to redevelop the former San Diego County Courthouse property.
The project features 10,000 square feet of ground-floor retail space, 289,000 square feet of office space spread across the first eight floors, a shared amenity level with a gym on the ninth floor and 431 apartments on the upper levels. The building is topped off by a residents-only rooftop deck with indoor and outdoor areas and a pool overlooking downtown.
A portion of the ninth floor amenity level at West is set up like a co-working space and can accommodate business events. (Alejandro Tamayo / The San Diego Union-Tribune)
There are also 41 subsidized residential units set aside for very low-income families earning 50 percent of the area median income.
West is an outlier in a market defined by standalone residential buildings and empty office towers.
“We don’t have many office buildings in downtown San Diego that have brand new office space complemented by luxury apartments on top and a shared amenity floor. That makes (West) stand out,” said Joshua Ohl, who is the senior director of market analytics for real estate tracker CoStar.
The building’s office space is currently 40 percent leased.
SANDAG will use a quarter of the ground floor at West for its public-facing board meetings. (Alejandro Tamayo / The San Diego Union-Tribune)
The San Diego Association of Governments is the marquee tenant. The transportation agency last year signed a 15-year lease for 87,308 square feet of space. SANDAG will use a quarter of the ground floor for its public-facing board meetings, and has leased the third and fourth floors to accommodate around 400 employees. The developer is planning to start construction on tenant improvements next month and the agency is expected to move into the building in early 2025.
Smaller future tenants, HNTB Corporation and HDR Engineering Inc., are following SANDAG from the Wells Fargo Plaza building at 401 B St. to West. The entities, which do business with the public agency, have leased 17,000 square feet and 9,000 square feet, respectively, on the second floor.
Real estate firm Jones Lang LaSalle, which is handling office leasing at the project, is negotiating with tenants for another 120,000 square feet of space, meaning the project’s office component should be 90 percent leased in 2025, said Richard Gonor, who is JLL’s executive vice president.
“We’re the only office building in the last 20 years to do any pre-leasing and the fact that we’re already 40 percent leased at this stage in the game means we’re well beyond any other projects in the market,” he said.
A bedroom in the two-bedroom, two-bathroom model unit at West, which rents for $5,900 a month. (Alejandro Tamayo / The San Diego Union-Tribune)
West is also the county’s biggest apartment project to debut this year. Currently, 22 percent of the residential units are leased.
Rent at West starts at $2,900 a month for a 550-square-foot studio, $3,400 for a one-bedroom, $5,200 for a two-bedroom and $6,000 for a three-bedroom. Units with premium views are even pricier. For instance, a 1,297-square-foot, two-bedroom unit with views on a higher floor rents for $5,900.
Though steep, the prices are in line with other projects in the area. The average monthly rent for a newly built, one-bedroom unit in the downtown market is $3,500, Ohl said.
West’s Sky Lounge includes a pool area with coastal and city views. (Alejandro Tamayo / The San Diego Union-Tribune)
The price tag includes access to the shared amenity deck and the rooftop pool area.
The ninth-floor amenity level is an expansive, indoor-outdoor area that is set up like a coworking space with open seating nooks, TVs and pods people can reserve for private calls. The level also includes a 4,200-square-foot gym with additional space for outdoor workouts and locker rooms.
On the 37th floor, residents are offered some of the best views in town from indoor and outdoor areas designed for recreation and remote work.
Parking, however, is priced separately, and costs between $150 and $350 per month, depending on the type of space.
The Sky Lounge cooking area at West offers downtown views and includes a custom-made lifeguard tower. (Alejandro Tamayo / The San Diego Union-Tribune)
West’s retail component includes four storefronts: a Mediterranean quick-service restaurant, a cafe concept opening to the lobby, a full-service restaurant and a resident-serving business.
Developer Holland Partner Group is also building the high-rise two blocks north at 201 West A St., called Torrey.
The 34-story residential project, which is under construction, is expected to be completed in the second quarter of 2026 and will feature a Whole Foods Market on the ground floor.