San Diego Multifamily for Sale - College Area
Priced for an immediate sale at $45k per unit below the 1980s+ Sale Comp Average over the last year!
3854 50th Street presents a compelling opportunity to acquire a low-maintenance 1980s construction asset in a historically high-demand yet affordable Central San Diego location. This “workhorse” investment combines strong in-place income with desirable infrastructure improvements and systems.
The property benefits from major infrastructure improvements and durable 1980s-era construction features that materially reduce long-term ownership risk and expense. The building features ABS sewer lines and new copper water supply lines that have been rerouted from the slab to the building’s exterior — a significant upgrade compared to older assets with aging cast iron plumbing. The electrical system consists of original 1980s Arrow Hart Murray panels, which are not flagged by insurance carriers. Improvements include a new roof (2020), dual-pane windows, parking lot repave, and new code-compliant catwalk railings.
Seasoned investors recognize the substantial cost burden associated with replacing cast iron plumbing, in-slab water lines, and problematic electrical panels — expenses that can average $25,000–$35,000 per unit, excluding demolition and reconstruction costs. This asset avoids those major capital exposures, offering a more predictable and expense-controlled operating profile.
The property produces a strong 6.10% cap rate and 9.95 GRM with the immediately available rent increases and a 6.86% proforma cap rate post full interior renovations. Unit interiors have received light updates over time but currently reflect deferred maintenance and dated finishes. All units can receive an immediate rent increase allowing for additional income or used as a strategy to encourage natural unit turnover to begin unit renovations for even higher rent capability.
The property consists of eight (8) 1-bedroom / 1-bath units and two (2) 2-bedroom / 1.5-bath units situated on an oversized 12,885 SF lot with approximately 5,696 SF of rentable living space. The property provides 17 parking spaces, creating the opportunity for additional income from tenants requiring more than one space. An onsite laundry room is present but currently not equipped with machines, presenting immediate upside through installation of a laundry service as both a tenant amenity and supplemental income stream. Utilities include 11 electric meters, one gas meter, and one water meter.
Residents enjoy proximity to many of San Diego’s major employment and lifestyle centers, all within a 5–15 minute drive, including Downtown San Diego, North Park, Mission Valley, Fashion Valley, SDSU, USD, Naval Base San Diego, and Scripps Medical Center. The property offers excellent freeway connectivity via I-15, I-805, I-8, and SR-94, supporting strong tenant demand and long-term rental stability.
