Opportunity Emerges for Large-Scale Redevelopment at Downtown san Diego’s 4th and B Street Site
A significant opportunity for large-scale redevelopment is taking shape in downtown San Diego around the intersection of 4th and B Streets, spurred by the recent listing of the property at 345 B St.,adjacent to the historically significant but decaying California Theater.The California Theatre itself is also for sale and faces a deadline; it must be sold by the end of next year or be demolished shortly thereafter, as mandated by a legal settlement between its bankrupt owner and the city of San Diego.
The potential for a unified redevelopment of the entire block is gaining traction,with real estate analysts suggesting a single buyer could unlock considerable benefits. Currently,the block is fragmented with multiple owners,including Hall Fish Investments and 1131 Third Ave LLC,who jointly own the Ace surface parking lot that occupies half the block.The California Theatre and 345 B St. are being marketed separately by CBRE.
Prior to the listing of 345 B St., developers had been pursuing individual projects on portions of the block. Iida, such as, had been working with the city’s Development Services Department since May 2023 to secure a building permit for a 400-foot tower encompassing 301 hotel rooms, 59,800 square feet of office space, and 10,400 square feet of retail. The permit review was nearing completion, and city officials confirmed a new owner could continue the process, or submit a new request.
However, the listing of 345 B St. has fueled hope that a new owner will pursue a more comprehensive vision for the area. Real estate analyst Gary London of London Moeder Advisors described the area as a “black hole” of downtown and believes a full-block development is now feasible. He advocates for the current owners to collaborate on a unified sales strategy to attract a single buyer capable of delivering a meaningfully scaled project.
While initial interest in the California Theatre property has not focused on demolition,prospective buyers have reportedly preferred to wait until the legal settlement necessitates it. London suggests the listing of 345 B St. changes this dynamic, presenting an opportunity to address the struggles of C and B Streets, particularly in light of the challenges facing the downtown office market. A large-scale project, possibly combined with the Civic Center redevelopment, could serve as a western anchor for revitalizing both streets.
CBRE will formally solicit offers for the California Theatre property next week, signaling a crucial step in determining the future of this key downtown block.
