San Diego Office Heads to Auction — What Italy Property Investors Must Know

A downtown San Diego foreclosure that should catch the attention of real estate Italy investors

A downtown San Diego office tower is set for a forced auction next month — real estate Italy investors should be watching. The sale at 610 W. Ash St. in Little Italy is a stark example of how credit stress, vacancy and title disputes can combine to turn a once-stable asset into a lender-controlled sale. For investors overseas, this case is useful not because the address is in California, but because the mechanics and risks are ones any cross-border buyer must understand.

Quick snapshot of the asset and the action

• Address: 610 W. Ash St., Little Italy, San Diego
• Sale type: Nonjudicial trustee’s sale (public auction)
• Notice recorded: April 15, 2025 (notice of trustee’s sale)
• Prior notice of default: December 19, 2024
• Scheduled auction: May 11, 2025 at the East County Regional Center, El Cajon
• Owner: Affiliate of Santa Fe-based Gemini Rosemont Commercial Real Estate (owned via West Ash Operating LLC)
• Lender: A10 Capital LLC (trustee action via Assured Lenders Services Inc.)
• Original 2017 loan: $33 million
• Total unpaid balance listed in notice of sale: $30.5 million
• Past-due amount listed in the default: $3.1 million as of Dec. 8, 2024
• Building size: 189,243 sq ft across 19 stories
• Year built: 1986
• Occupancy: Listed by CoStar as more than half vacant; largest tenant is the U.S. Fish and Wildlife Service (two full floors and a partial floor)

What happened at 610 W. Ash St.: the sequence of events

The lender A10 Capital initiated the process after what the recorded documents call a default under a deed of trust executed in 2017. The property owner has not made monthly loan payments since March 1, 2025, and an initial notice of default and election to sell was recorded on December 19, 2024. The trustee’s sale notice filed April 15, 2025 is the last formal step in a California nonjudicial foreclosure before an auction.

Commercial real estate attorney Gordon Gerson, who represents lenders in such matters, explained that the notice of sale “alerts the borrower” that foreclosure is imminent. He also noted trustee sale dates can be extended in weekly increments for up to one year if parties negotiate or if procedural delays occur. The foreclosure will go forward on May 11, 2025 unless a deal is reached with the lender or the borrower files for bankruptcy.

There is a parallel litigation track. On January 7, 2025, A10 Capital filed a breach-of-contract lawsuit in San Diego Superior Court, alleging the borrower entered an unauthorized easement agreement with a neighbor that breached loan covenants. The neighboring parcel owner, India & Beech LLC, is separately suing the building owner, claiming that actions tied to the easement have blocked its proposed residential skyscraper project on the adjacent parking lot at 1460 India St. Both court cases remain pending and add complexity for any purchaser.

Why this case matters beyond San Diego: lessons for international investors

We see three immediate lessons for buyers, especially those based in Italy who are considering U.S. property or following global commercial real estate trends.

1. Title and easement problems can derail a transaction and a borrower’s relationship with its lender. The lender’s suit cites an unauthorized easement agreement. For a buyer, unresolved title defects or third-party claims can wipe out the economic upside or saddle the buyer with litigation costs.

2. Occupancy metrics and tenant mix matter more now than before. The building is listed as more than half vacant. Government tenants such as the U.S. Fish and Wildlife Service provide stable rent streams, but their presence alone does not immunize a large office asset from market pressure when overall downtown vacancy is rising.

3. The creditor’s timeline matters: a trustee sale is fast in California. Unlike jurisdictions where judicial foreclosure drags on, a nonjudicial trustee sale can move quickly. Buyers who are not familiar with California process may be surprised at how compressed the timetable becomes once the notice of sale is recorded.

Put simply, cross-border buyers should not treat headline prices as the only variable. We recommend focusing on title, lease roll, capex requirements, parking entitlements, and lender claims before committing capital.

Asset specifics that will shape buyer decisions

The physical and lease details of the property will determine who bids and how high they go.

• The building was constructed in 1986 and is a 19-story office tower with a glass facade, panoramic views of the city and bay, and a nine-level parking structure. A 2019 lobby and tenant amenity upgrade is recorded by CoStar.
• The tower was once home to ESET, which moved out in 2024. That relocation contributed to the vacancy that now exceeds 50 percent.
• Ground-floor retail includes local establishments such as Petrini’s Restaurant and Capri Cafe, which may provide street-level activation but do not materially shift office valuation.

That mix creates both challenges and options. A value-add buyer might try to convert some floors to alternative office formats or improve leasing concessions, while a deep-value opportunist may buy at auction and later negotiate with the lender for a deed-in-lieu. But the pending easement dispute raises uncertainty about redevelopment rights and how the neighboring parcel can be used — an issue that will affect price expectations.

The legal overlay: foreclosure mechanics and the easement dispute

This case combines a nonjudicial foreclosure process with litigation over alleged loan covenant violations.

• Nonjudicial foreclosure (trustee’s sale) means the lender can foreclose without a court order if the deed of trust contains the power-of-sale clause and the trustee follows statutory notice requirements. The recorded notice of trustee’s sale on April 15, 2025 starts the countdown to a public auction, currently set for May 11, 2025.
• The lender’s separate lawsuit, filed January 7, 2025, accuses the borrower of entering an unauthorized easement agreement with a neighboring lot owner. That alleged easement is at the center of the neighbor’s claim that the building owner’s actions block construction of a planned residential tower at 1460 India St.

For a buyer at auction, litigation tied to the title or easement could mean the new owner inherits the fight. In some cases, an auction buyer might be able to walk away if the litigation renders title unmarketable, but this depends on the winning bid, title insurance availability, and whether deeds convey clear title subject to recorded exceptions. Thorough pre-auction due diligence is essential.

Market context: downtown San Diego’s office downturn

Industry observers tied to this story say the sale is part of a broader downtown office decline. Vacancy increases, corporate downsizing, hybrid work trends and tenant flight from traditional central business districts are reflected in higher vacancy and lower effective rents. Gerson’s comment that “recovery may be on its way, but maybe long away” captures the current mood.

These headwinds matter for pricing. An investor who expects to rely on rising rents to justify paying a premium at auction is taking a bet on near-term market recovery.