The century-old, six-story building on University Avenue offers value-add upside through interior renovations, ADU potential, and two existing cell tower leases
A 58-unit apartment building in San Diego’s Hillcrest neighborhood has been listed for sale for $20 million, bringing to market one of the more rarely traded urban assets of its size along the University Avenue corridor. The property at 1751 University Ave. is a six-story, Class C building totaling 41,330 square feet on a 0.3-acre lot. Public property records show the current owner is a San Diego-based entity.
Built in 1921 and most recently renovated in 2008 and 2025, the asset is priced at $484 per square foot and roughly $344,800 per unit. Ben Sierpina and Raymond Choi of Marcus & Millichap are handling the offering, noting that the current net operating income of $950,668 reflects a going-in cap rate of 4.75 percent, consistent with the broader San Diego multifamily investment market. The property is zoned CC-3-10 and includes 11 on-site parking stalls.
The listing is positioned as a value-add opportunity, with the investment thesis resting on a combination of in-place cash flow and multiple identified paths to income growth. Recent capital improvements include upgrades to the building’s electrical systems, elevator, roof, windows, common areas, security system, and fire system. On-site amenities include a fitness and yoga center, business center, and leasing office. Two existing cell tower leases provide supplemental income beyond residential rents.
The brokers are highlighting additional upside through further interior unit renovations, expanded use of common area space, and the potential for accessory dwelling unit conversions within the building’s large basement. ADU conversions have emerged as an active value-creation strategy in supply-constrained San Diego markets. Land scarcity and limited development relative to demand make ADUs a particularly compelling income source for multifamily investors in San Diego, according to JPMorgan Chase, which noted that both individual investors and institutional players are adding units to properties to generate additional cash flow.
The Hillcrest location is central to the offering’s investment appeal. The neighborhood, anchored by University Avenue and Fifth Avenue and adjacent to Balboa Park, commands some of the strongest rents in the San Diego metro. North Park, Bankers Hill, and Hillcrest carry the highest rents in the metro, and rental growth rates in those submarkets have outpaced the broader market over the past 12 months, according to Matthews Real Estate Investment Services. Hillcrest averages approximately $2,885 per month for a 766-square-foot apartment, placing it in the middle tier of San Diego neighborhoods but well above more affordable suburban options, with an estimated 65 percent of households renting — creating a durable demand base for investors.
New development activity along the Hillcrest corridor has been intensifying, which provides context for the repositioning potential of the 1751 University Ave. asset. Several ground-up projects are underway or recently completed in the immediate area, including a mixed-use development near 8th and University and a new 69-unit building designed under San Diego’s Complete Communities regulations. This pipeline of newer products sets a market rent ceiling that a renovated, well-located vintage building can increasingly approach through strategic capital deployment.
Against that backdrop, well-located urban assets with embedded renovation upside remain among the more sought-after acquisition targets for investors looking to generate returns through operational improvement rather than relying solely on market-driven rent growth.
The 1751 University Ave. offering reflects the type of urban infill, value-add multifamily investment that has driven much of San Diego’s transaction volume in recent cycles. With a century of operating history, a recently refreshed capital structure, and multiple identified income levers, the asset is positioned to attract buyers seeking durable yield in one of San Diego’s most established rental neighborhoods.
