San Marcos Investments Inc. has sold The Marina Inn, a 13,000-square-foot hotel and land at 929 Grape Street in the Little Italy neighborhood of Downtown San Diego to an undisclosed overseas buyer for $12.1 million. The buyer plans to develop the property into class-A luxury apartments or condominiums.
The hotel sale represents the highest price per buildable square foot ($232.88) in Downtown San Diego history, according to Pacific Coast Commercial, which brokered the sale. The price per square foot of land was $931.54.
This marks the second time the property has traded hands in 10 months. Dave Dilday and Erik Anderson of Pacific Coast Commercial represented the seller in the transaction. Yasushi Shiromi and Junko Masubayashi of Newmark Knight Frank represented the buyer. Dilday and Anderson handled the transaction on behalf of the previous seller in August 2017 as well.
The land price was higher than from the previous sale, which stemmed from the removal of the existing long-term hotel lease that was held by the current seller to allow for development. According to Dilday, “this property offered an opportunity to capitalize on the red-hot Little Italy market and build luxury living space on one of Southern California’s most attractive bayfront sites. The site offers unobstructed views of the San Diego Bay and sits directly in front of the Waterfront Park in the heart of vibrant Little Italy. The seller was able to create significant resale value by closing down The Marina Inn.”