San Diego Multifamily for Sale - Uptown East
* * * please do not disturb residents * * *
3% buyer commission paid upon close of escrow. Seller desires to cash out - seller financing unavailable
Think LONG TERM ! Remember the MULTI - YEAR high vacancy rates of the 90's and Great Financial Crisis ?
When will this repeat again ! San Diego's highly desired climate will FOREVER be a MAGNET attracting tenants
whenever rents soften, creating a continuous cycle of demand over the LONG TERM.
Possibly San Diego does not experience a softening such as those above: Newmark's just released White Report for Q1 2026
identifies San Diego's geographically "boxed in" character creates inevitable scarce develop-able land with
much needed rental housing as soon as 2027 - 2028 !
PROPERTY LOCATION and OPPORTUNITY:
The property available in this listing is a 3788 sq.ft. - 6 unit apartment building on 6969.6 sq. ft. of flat land. The lot is the largest privately held parcel of the six parcels that comprise the "short block" on Iowa St., just North of Circle K on El Cajon Blvd. The short block is bordered by two streets and a 10' alley. Complete Communities Tier 3 overlay zone applies, allowing 6.5 times the assembled land area in gross built square footage, less the utility easement corridor the length of Boundary Street. The opportunity is to ASSEMBLE the other parcels over time. Optimally, a strategy employed would capitalize on purchasing the adjacent lots during opportunities of deep economic dislocation/discount from current values (which occur from time to time). Each additional acquisition contributes significantly to the ultimate block assemblage. The level terrain allows for maximum unit yield with the lowest possible grading cost. CAL TRANS has zero ownership in Boundary Street, a rare exception. Cal Trans' property line is their chain link fence at Boundary St.
CONVENIENCE of LOCATION:
With adjacent access to 805 fwy, the location offers super convenient access to freeways 8, 15, 163 and 94 connecting Downtown, Mission Valley, Beaches, East County and South Bay. SPROUTS' decision to locate at 33rd St.and El Cajon Blvd. evidences their conviction of continued neighborhood gentrification and economic viability. Sprouts is scheduled to open by Fall. SPROUTS will make the frequent chore of grocery shopping super convenient at 1/3 mile by vehicle. Public transit to SDSU, Downtown, La Mesa, Fashion Valley, North Park central, Escondido (via Rapid 235 at the I-15 Transit Center) and destinations between are provided via Metropolitan Transit routes 215, 6 - all with connections by MTS Route 1 which can be boarded just two blocks west of Iowa Street.
AREA CALCULATION and UNIT PRODUCTION:
The assembled 6 parcels, accompanied with City granted vacations of existing rights of ways ^ (Boundary Street and the East/West connecting alley to Iowa Street) = 1.15 acres (50,094 sf, subject to survey) LESS the non build-able 25' x 475' utility easement corridor (11,875 sf) yields 38,219 sf X 6.5 FAR = 248,423 Gross Build-able Area - call it 248,000 sf. Applying 20 % for common area/circulation/core functions nets 198,400 sf Gross Build-able Area attributable to unit production (80% of 248,000). Applying a simplistic program of 100% 2br/2ba prototype, each 850 sq.ft., yield potential is 233 units. Putting a total parcel accumulation cost at $12.5 million yields a raw land cost of $54K/unit.
^ the State's "AFFORDABLE HOUSING for ALL" policies set San Diego's future on a permanent path to become very, very dense over time similar to Los Angeles, Chicago and Seattle. Given this commitment, the City has no cause to deny vacation of their public right of ways that would meaningfully contribute to the creation of needed housing.
PARKING - A COMPETITIVE ADVANTAGE:
Iowa Street's 80' right of way allows 90 degree head-in parking. With 8' wide stalls the 415' length would accommodate at least 39 spaces, including two disabled and two, 24' wide, double ingress-egress aprons (one for subterranean parking, one for grade level parking). A single level subterranean parking structure utilizing 38,000 sf of land with diagonal stall configuration will produce 75 spaces, 114 total (39 + 75) . . . utilizing 75% of the parcel at grade level for parking will contribute approximately 86 stalls = 200 total spaces (114 + 86).
UTILITIES:
Overhead high voltage electric lines and two high pressure gas lines within an existing easement corridor on Boundary St. Approximately 425 lineal feet of high tension power lines (69kv, 12kv) require concrete encased under-grounding. One 60' steel transmission tower requires removal . . . two poles at North/South ends of the project remain. Additionally, one each 16" and 6" gas line exist and are proposed to remain in the utility easement.
PROJECT REVENUES and POTENTIAL SALE VALUE:
Assuming a rent rate at $3200/mo. and applying a conservative 6% vacancy factor, annual income approximates $8,410,000. After property taxes and 30% operating cost, net annual income = $4,678,000. Using a 4.2% capitalization rate imputes project value at $111,381,000. An average unit sale price of $675,000 imputes a project value at $157,275,000. It has been 51 years since this property was last available for purchase. Acquiring this property positions you to earn income, while, over time, you acquire 5 adjacent parcels due South. Capture this rare opportunity to create your Legacy Wealth.
VALUE ADD:
The subject is comprised of (2) large 1br/1ba units approximately 745sf; (4) 1br/1ba units approximately 575 sf totaling 3,788 sf with (8) on-site parking spaces, a generous ratio at 2.1/1000 sf . . . on street parking often presents space as over-flow . . . capability of expanding two units . . .pro-forma rents are $1895 each for 4 units, $2095 for the larger 2 units.. . . .coin laundry on site . . . optimize rents with assertive management
utility record documents and Cal Trans survey all available
