An investment opportunity has surfaced with the listing for sale of a modern multifamily apartment building in the North Park neighborhood of San Diego. According to the marketing flier by Marcus & Millichap, which has the listing, the 23-unit multifamily property is located at 3525 Indiana St. The listed price is a total of $19.5 million or approximately $848,000 per unit.
The marketing of the property is led by the Marcus & Millichap team of Tom McCartin and Jasper Hodgson.
The listing shows the residential property was built in 2019 and currently has a cap rate of 2.29 percent and a net operating income of just over $446,000 per year. The property reportedly enjoys a high occupancy rate with low turnover, presenting a possible stable income stream for the potential new owner. Current rents are approximately $100 per unit below market value, indicating potential upside in income. Each unit is separately metered for electricity and water, but additional revenue streams could be accessed through a ratio utility billing system (RUBS) program, gated parking fees and storage charges. The building’s parking facilities include 21 garage spaces, five of which are equipped with EV charging units and seven tuck-under carport spaces.
The marketing flier further shows the property, exempt from the AB 1482 statewide rent control measures, offers additional financial advantages including newly installed solar panels that eliminate electric bills. A portion of the property is also approved under The Mills Act ensuring property tax savings. The Mills Act is a California economic incentive program for the restoration and preservation of qualified historic buildings by property owners. The residential property also comes with an assumable Department of Housing and Urban Development (HUD) financing fixed at a rate of 2.5 percent until 2056.
Marcus & Millichap’s listing also shows that the multifamily building’s location in San Diego’s North Park makes it potentially attractive to young professionals drawn to the area’s urban lifestyle. With a walk score of 83, the location is classed “very walkable,” offering access to numerous local amenities, as well as dining and entertainment venues.
