Tech entrepreneur Daniel Negari buys two downtown San Diego office towers amid shifting market conditions
Two-tower purchase signals continued capital targeting older downtown office assets
Downtown San Diego has logged another high-profile office investment as tech entrepreneur Daniel Negari expanded his commercial real estate footprint with the acquisition of two office towers: 225 Broadway and 501 West Broadway. The transactions add to a broader reshuffling of ownership among legacy downtown office buildings as institutional landlords reduce exposure to the sector.
Public filings tied to subsequent financing describe Negari as the founder and chief executive of XYZ, a company associated with internet domain services, and identify him as the controlling sponsor behind the entities that own both properties. The same filings state that 225 Broadway was purchased in December 2024 in an all-cash transaction, with financing arranged afterward. A separate filing describes a mortgage loan related to 501 West Broadway that was originated on Aug. 29, 2025.
What is known about the buildings
225 Broadway: Financing documentation characterizes the property as a 351,540-square-foot office building in downtown San Diego. The borrower is identified as a single-purpose entity indirectly owned and controlled by Negari.
501 West Broadway: Financing documentation describes a mortgage loan originated in late August 2025, with the borrower listed as a single-purpose entity indirectly owned and controlled by Negari.
Context: a downtown market in transition
The purchases took place amid elevated vacancy and pricing pressure across many U.S. downtown office markets, with San Diego included among cities facing post-pandemic shifts in office utilization. In recent years, long-term owners have marketed or sold prominent towers at discounted valuations compared with prior-cycle pricing, reflecting higher interest rates, changing tenant demand, and the cost of repositioning older buildings.
Reporting on broader downtown activity has highlighted a trend toward smaller, more entrepreneurial buyers stepping in where large institutional owners once held multiple properties. For buyers, the strategy can hinge on acquiring well-located assets at reduced bases and investing in leasing, renovations, and amenity upgrades designed to appeal to smaller tenants and flexible space needs.
Operational plans and near-term implications
In public remarks carried by local broadcast reporting, Negari has described a focus on improving occupancy and activating ground-level uses intended to draw visitors beyond traditional office hours. Separately, business and real estate coverage has tied the transactions to a wider drawdown by a major legacy downtown office owner, part of a sequence of sales that has redistributed downtown assets among new groups.
Both acquisitions underscore that, despite headwinds in the office sector, downtown San Diego continues to attract targeted investment—particularly where buyers believe hands-on management and capital improvements can stabilize tenancy and reposition older towers.
For downtown stakeholders, the practical test will be whether new ownership can convert lower entry prices into durable leasing momentum in a market still adjusting to hybrid work patterns and evolving tenant expectations.