San Diego’s multifamily real estate market continues to hold its top status on a national scale recently showing resilience and vitality in the form of low vacancy rates, strong rental demand and strategic construction endeavors. One asset that may now test the current market conditions is the 51-unit multifamily portfolio that is offered for sale for $12.25 million, or just over $240,000 per unit. The properties in the portfolio can be sold separately or together. The multifamily asset portfolio is located on around one acre of land at 4033, 4051 and 4079 Euclid Ave. in San Diego’s City Heights neighborhood.
The marketing of the property is led by Northmarq’s Senior Vice Presidents Benn Vogelsang and Erik Anderson based in San Diego. Public records show that the property is currently owned by an entity affiliated with Pacific Coast Holdings LLC.
4033-79 Euclid Avenue encompasses three adjacent single- and two-story properties and four parcels of land. The buildings were constructed between 1957 and 1962, with various unit renovations and remodeling taking place over the past decade. Some of the improvements include new tile flooring, kitchen renovations, tiled shower enclosures and more. Out of the 51 units across all buildings, the unit mix includes one three-bedroom/1.5-bath, 32 two-bedroom/one-bath, 14 one-bedroom/one-bath and four studio apartments.
The marketing materials state that the property is fully occupied, with all tenants currently on month-to-month leases, with no Section 8 occupants. The reported cap rate is just over 4 percent and the net operating income is just over $490,000 per year. The property also includes 42 parking spaces, with 18 of them in the on site garage.
The property is located within an Opportunity Zone on a residential street within City Heights’ Teralta East neighborhood, close to Colina Del Sol. This location is also a short walking distance away from the shopping and transit hub along University Avenue and the recently developed retail center in Fairmount Village, which is home to various amenities including El Super, Starbucks, Chase and Wells Fargo banks and a number of restaurants.
Euclid Avenue serves as a primary thoroughfare, linking the property to major routes such as US Interstate Highway 805 and California State Routes 94 and 15, while leading northward and eastward to Talmadge, the US Interstate Highway 8 and points of interest like Montezuma Road and San Diego State University. Within close proximity there are also several elementary and high schools, along with Colina Park Golf Course and Recreation Center.
The recently published 2024 Multifamily National Investment Forecast by Marcus & Millichap shows that San Diego’s real estate market continues on its robust and consistent positive trajectory. The city maintains low vacancy rates across various asset types, alongside strategic construction initiatives and substantial investment activity.
