Commercial real estate Little Italy
2045 Pacific Highway site, outlined in yellow. Photo credit: Courtesy, Cushman & Wakefield

A four-parcel 1.3-acre office development in Little Italy that officials describe as a “coveted project,” has sold for $42 million.

Kilroy Realty Corporation, based in Los Angeles, with offices in San Diego, purchased the site from Pacifica Companies in Mission Hills.

Kilroy recently announced plans to develop up to 275,000 square feet of Class A office space on the full city block located at 2045 Pacific Highway.

The firm has embarked on a $670 million spending spree on the Little Italy project and sites in Austin, Tex. and Bellevue, Wash. The company also has properties in the San Francisco Bay Area and the Pacific Northwest.

Plans for the new office development include suites with panoramic water views.

Kilroy said the acquisition “will enhance the company’s position in the downtown area by providing flexibility and scale for large and growing tenants at its newly constructed 220,000 square-foot 2100 Kettner development.

That site is adjacent to the Pacific Highway project.

Kevin Nolen, Mike Novkov, Tim Winslow and Jason Kimmel of Cushman & Wakefield represented the seller in the transaction.

“This was a rare opportunity for an investor/developer to acquire an extremely well-located piece of property just off the waterfront in downtown San Diego,” Nolen said. “In the last 15 years, there has been very limited new spec office deliveries specific to Little Italy, and Kilroy’s plans for this site will be a great and needed addition to the Class A inventory.”

Novkov called the development “a coveted project” that could be attractive to tech and life science companies.