Coronado Carriage Quarters, a two-unit luxury vacation rental property in Coronado, has recently been placed on the market. According to the listing by Marcus & Millichap, the property is being offered at $8 million, or about $4 million per unit.
“Coronado Carriage Quarters truly offers a unique opportunity to investors. This legacy property is situated in a rare Commercial Hotel-Motel zoning and is being operated as a full time luxury vacation rental,” Connor Stolle, senior associate with Marcus & Millichap, said.
The property is located at 1113 Adella Avenue in one of San Diego’s top tourist destinations. According to public records, the short-term rental property has been owned by a local family trust associated with Janice and James McElroy since 2003. At that time, the property sold for $1.39 million, or roughly $695,000 per unit.
Now back on the market, the property offers 2,920 square feet of rentable area, which includes two fully furnished three-bedroom units. The property also offers a communal courtyard and five off-street parking spaces.
While currently operating as a two-unit building, the property has a rare zoning designation that would allow a potential buyer to redevelop the site in order to capitalize on additional short term rentals. The zoning, which is only designated to one other spot in Coronado, allows for short term rentals. Other short-term rentals in Coronado require a 26-night minimum stay.
The property is also located across the street from the well-known beach resort Hotel Del Coronado and the Pacific Ocean. Additionally, the property is in close proximity to the Coronado Bridge, offering easy access to the rest of San Diego.
Coronado is one of the top tourist destinations in the country, attracting more than one million visitors annually. According to a recent report from Discover Coronado, hospitality properties have begun to return to pre-pandemic levels, with the report showing a 75 percent increase in hotel stays throughout 2021. In comparison, 2020 saw a 55 percent decline in hotel stays. Additionally, daily hotel rates in Coronado averaged $426, a 32 percent increase year-over-year.
“With the property being located in the heart of Coronado and only a block away from the #1 ranked beach in the United States, this asset exalts everything Corondao Island is known for. Coronado is one of the most exclusive real estate markets in Southern California, making Coronado Carriage Quarters a generational asset poised for long term appreciation,” said Stolle.
