Investment Overview

Marcus & Millichap has been retained by ownership on an exclusive basis to market for sale a 70,602 square foot (BOMA-2014), 6-story office and retail mixed-use building located at 1111 6th Avenue, San Diego, CA 92101. The property was originally constructed in 1935 as the San Diego headquarters for Sears, Roebuck and Co. and is positioned on the corner of 6th Avenue and C Street in Downtown San Diego’s Central Business District. This mixed-use offering is truly an irreplaceable opportunity to acquire one of Downtown’s iconic buildings. The elevator-served building consists of 57,297 square feet of office over 6,912 square feet of retail. The ground floor retail portion is 100% leased to Subway, Downtown San Diego Partnership, and a Periodontist who’s been operating at this location for 20 years. Floors two through six were extensively renovated in 2017 and are representative of a modern, Class-A office environment. 29,120 square feet is leased to the seller, Expansive, the Chicago based co-working company that has 45 locations in 34 cities which is the largest portfolio of owned and operated flexible workspace centers in the United States. Upon acquiring the property, ownership invested over $5 Million into the building and in tenant improvements with the latest amenities including indoor and outdoor lounge areas, rooftop terrace, bike storage and a game room. Expansive will continue to lease their space post-closing, details included on Page 21. Beneath the property are twenty-two gated parking stalls with access along 6th Avenue. While the building is not currently historically designated, it may qualify for historic designation and the *Mills Act. Many of the property’s characteristics lend itself appropriately to such designation. The building is currently 59% occupancy and priced significantly below replacement costs. 1111 6th Ave is a true value-add opportunity, through-lease up, and repositioning of existing lease structures will drive NOI growth allowing an investor the opportunity to capture substantial equity above their basis. The estimated replacement cost is equal to $375-$450 dollars per square-foot, or approximately, $28,000,000 dollars to construct. *Buyer to verify the property’s historic and Mills Act eligibility.