SAN DIEGO-Kearny Real Estate Company has acquired from Union Bank, N.A., a 232,098-square-foot LEED Gold office building at 530 B Street in downtown San Diego.

The deal was announced Jeff Dritley, managing partner and founder of Kearny Real Estate Company. 

Through a new long-term lease, Union Bank will continue to occupy a major portion of the building. While Union Bank will retain building top signage, Kearny will rebrand the building as 530 B. 

Kearny will undertake a $15 million capital improvement program that will include
a significant overhaul of the building's core plumbing, completely new restrooms, significant new tenant improvements, and a new indoor/outdoor experience of a previously under-utilized 12,000 square-foot patio. 

“This patio is one of the reasons we bought this iconic building.  It gives us the opportunity to create a wonderful indoor/outdoor experience for our tenants,” said Kearny Partner John Bragg, who heads the firm's San Diego office. “When completed in Spring 2014 there will be nothing else like it for tenants in downtown San Diego.”

Built in 1966 and renovated in 1992, the 27-story Union Bank Building had stood as the tallest building in San Diego for more than 20 years and still remains a distinctive piece of the San Diego skyline.  Characterized by its floor-to-ceiling windows, every floor offers 360-degree views of the San Diego Bay, Pacific Ocean, and Balboa Park.

“Businesses occupying 10,000 square feet or less make up approximately 85% of the office space in Downtown San Diego,” added Bragg.  “With 9,250 square-foot floor plates, the building provides unique full-floor opportunities for the mid-size tenants that dominate the downtown market.”

The building was 57% leased at the time of the sale.  In addition to Union Bank and the San Diego office of Kearny, other significant tenants include The San Diego Economic Development Corporation, Peterson Price, Messner Smith, Peterson & Associates and Standing Chapter 13 Trustee.

Louay Alsadek and Evan August of CBRE represented Union Bank in the transaction and Ryan Grant, Andrew Taylor and Jim Rinehart of CBRE have been retained as leasing agents.