Starwood Capital Group, in a partnership with an undisclosed investor, have purchased the Waterfall Block, a distressed 8-property asset in downtown San Diego, California
. The seller, Waterfall Block, LLC, faces a loss after purchasing the mixed-use portfolio in 2007. Renovation and development was in the works, even with a financial commitment from Wachovia, though things soured during the credit crisis in 2009.
Covering more than 58,000 square feet of downtown San Diego, the buildings are a mix of retail, industrial, office, residential and hotel space. Waterfall Block is within a short distance to the upcoming Gaslight, East Village, and Harbor districts, where the planning stages have begun for the new San Diego Chargers Stadium.