The Riviera Jewell Apartments is a charming, courtyard style, 19 unit multifamily investment opportunity ideally located in Crown Point. The Riviera Jewell is a prime asset, built in the 60s, long-term ownership, the interior is mostly original, the exterior and interiors have all been well maintained. With this building the investor can purchase both a well-insulated and value-add asset located within a high demand coastal market by both investors and renters. Rents have more than rebounded since the height of COVID, the demand is driving asking rents $50- $300 more than just 6 months ago. The building is quite, tenants and management have pride of ownership and collections are 100%. The building has one parking space for each unit, dual paned windows throughout, unit mix of (5) 2 bed, 2 bath units, (2) 2 bed, 1 bath units, and (12) 1 bed one bath units. Tenants are just blocks away from parks, beaches, coffee, bars, restaurants and everything that the majority of locals and transplants are looking for in a San Diego life style further supporting increased rental revenue potential. Apartment buildings across the street and on the same block are asking well north of $3,000 for 2 bed, 2 bath, renovated units, providing ideal case studies for upside and value add potential.
The Crown Point Apartments are located in Pacific Beach, a very desirable location that offers residents the convenience of biking or walking to numerous attractions. The median household income for Pacific Beach is higher than the San Diego County median at $80,467, allowing residents to enjoy the over 350 restaurants, cafés, and bars located in the area. The numerous nearby beaches and outdoor activities are also popular attractions for residents. The Crown Point Apartments are located very close to popular parks with Kate Sessions Park being 1.7 miles away and Fanuel Street Park being only .9 miles away from the Crown Point Apartments. Crown Point’s location also offers residents easy access to the I-5 freeway and proximity to some of San Diego’s largest employment centers with Downtown San Diego and the La Jolla/UTC area being only 15 minutes away. Nearby schools include Pacific Beach Elementary, Pacific Beach Middle School, and Mission Bay High School. Highly ranked Universities are also nearby with the University of San Diego and the University of California San Diego each being only a short drive away.
The Pacific Beach Multifamily Submarket has seen strong performance in many key metrics. Market effective rent per SF has been steadily increasing with 1 bedroom units renting for $3 per SF currently, up from $2.52 per SF in Q2 2020 and $2.61 per SF in Q3 2020. 2 bedroom units are currently renting for $2.73 per SF which is up from $2.45 per SF in Q2 of 2020 and $2.50 per SF in Q3 of 2020. Vacancy rates have decreased significantly from 5.7% in Q1 of 2021 and currently are 1.3%. The market sale price per unit has gone up considerably from $330,011 in Q3 2020 to $363,106 for Q3 in 2021. With per unit sale prices increasing, cap rates have compressed for investors with cap rates decreasing each quarter from 4.25% in Q3 of the 2020 year to 2.65% where rates are currently.