New details related to the former building owner's now-disqualified bid suggest that the empty office tower might be cheaper to rehabilitate than previously estimated
Sandor Shapery, the local real estate developer who previously owned 101 Ash St. and had hoped to author a redemption story for the empty office tower, offered to pay $35 million to buy back the physically and politically tainted building from the city of San Diego earlier this month.rehabilitate the building for office use
Built in 1967, the 21-story Ash Street building has been mostly vacant since mid-2015, when Sempra Energy moved out. In early 2017, the city of San Diego entered into a 20-year, lease-to-own agreement with Cisterra Development for the tower, which was appraised at $67 million at the time. The deal included a fixed monthly rental payment of $534,726.50, with the city paying approximately $1.70 per square foot, not including operating expenses such as utility costs and maintenance needs.
In total, San Diego has spent around $140 million on the Ash Street building, when including the $86 million settlement payment, the $24 million spent on lease payments prior to litigation and roughly $30 million inAlthough Shapery’s bid is not being considered, it hints at 101 Ash’s value, which has been difficult to pin down in the wake of a bungled renovation effort that disturbed asbestos and rendered the building inhabitable.
Shapery’s cash offer suggests otherwise, with his proposed rehabilitation plan pegged at a fraction of the cost of previous estimates. Still, proposed lease terms would have likely been difficult for the city to stomach, given the total cost for the 10-year term and officials’ desire to put the saga in the past.
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