Vancouver-based real estate developer Nat Bosa, who purchased the stretch of land along Pacific Highway between Broadway and E streets, plans to build 232 units by 2017.
Each unit is projected to sell for more than $1 million. Upon completion, the building would be valued at $400 million if sales projections hold.
"It's incredible dollar value … whatever we charge is going to be incredible value for people to buy,” said Bosa.
But does San Diego have enough people who can afford the price tag?
“San Diego is a growing market. People are getting more comfortable with downtown but it’s not a stampede,” said Bosa.
Downtown currently has a limited number of condos for sale. Commercial real estate agent Nick Totah, with Marcus and Millichap, believes the new addition is exactly what downtown needs.
“We have a lot of one-off condos and projects you can find in downtown San Diego that are around that price. I think this will bring the market to San Diego,” said Totah.
According to Totah, 70 condos sold in the downtown area in the last five weeks.
The average price for a waterfront condo ranges between $400 and $500 per square foot. Bosa is asking for more than $1,000 per square foot.
“It's going to raise property value, I think you will have a lot of people who will be very happy about that and then you will obviously have a lot of push back from some people but overall I think it’s a good thing for everyone,” said Totah.
Bosa said he is hoping to attract buyers who are looking to sell their larger San Diego properties for downtown living as well as outside buyers.
“California and the rest of United States. We’re going to get some Mexicans and a few Asians,” said Bosa.
The units will range from 956 to 2,083 square feet in 41 stories, including more than 16,000 square feet of ground-level retail space.
Bosa has built several properties throughout San Diego, including the Horizons Condominiums and the Park Plaza.