Imperial Beach Market

[Christopher Gallardo]

BP San Diego,

Is anyone familiar with the Imperial Beach Market? My wife and I are looking at purchasing a SFH in the IB area to live in for 3-5 years before renting it out. We currently own a MFH in Logan Heights so I am new to the IB area. I am speculating it will sustain some growth in the future with the addition of the Navy Special Warfare compound, but is anyone else investing in IB right now?

I have been looking at the properties currently on market and was quite surprised how much house you can get for the price within 2 miles of a beach. I know Imperial Beach has some mixed reviews based on location and current demographics but it seems like purchasing a value-add property might not be a bad idea. Any thoughts on what the IB market might do in the near future?

[Jed Bratt]

I like Dan's perspective.  Fully agree with everything he has said, although I would note that there has been a commercial tenant -- the Tin Fish -- at the pier for several years now.

Also, the Sand Castle Competition is still a big event.  It now goes by the name the Sun and Sea Festival, and it has drawn in over 100,000 people each weekend it was held in the past couple years last I saw.

I've lived and owned in IB for several years and I love the city.  The Mexico sewage issue is a paramount consideration in my opinion, but I would also note that it is nothing new.  Not to undermine the importance of the issue, but the pollution issues have been going on for decades. 

That said, I concur with Dan that there are several challenges relating to resolving the conditions.  If I might throw on my optimism hat though, once they fully move all of the SEAL teams down to the new Naval Coastal Campus from Coronado, the government's attention to the issue *ought* to be higher than ever considering that these guys are out in the water a lot and when you have a state-of-the-art training facility for our elite forces being influenced by polluted water, this becomes a national security issue.  Not that things always work out the way they should, but just saying that I am optimistic that this in conjunction with the mayor's seemingly persistent efforts at drawing attention to the matter brings about better conditions for improvement than ever before.

All of that said, assuming you are comfortable with the potential implications of occasional pollution issues (as I am), Imperial Beach has tremendous room for growth.  Already a small town with growth limitations on all sides (Bay to the North, Estuary to the South, Ocean to West....), the increased housing demand from bringing down an additional 3,000+ active military personnel to the area will only positively reinforce rising rents and prices, barring significant economic influencers. 

To put things in a bit of perspective, nearly all of this rapid gentrification (and it has been rapid in the past 5 years-- you'd barely recognize it from 2010) was triggered by the completion of the Marriott (Pier South) which is a beautiful hotel.  Last I checked, their occupancy numbers were better than originally projected and they have brought much attention and increased tourism to the previously neglected town.

In 2014, the lot at IB Blvd and Seacoast sold for $5.5MM to the Hilton Hospitality Management Group, and a NEW 100 room ocean-front hotel "Imperial Beach Resort" is in the works.  In my opinion, that will be significant, having two major names (soft-branded) ocean front hotels.  This along with the businesses constantly popping up (Coronado Brewing, Brigantine, Mike Hess & City Tacos, etc...) only draws more traffic and increases demand.  Ten years ago, this city was simply *blah*.  It's come a long way and it's still coming.

Once you factor in local external influencers as well such as the Chula Vista Bayfront development (which is actually making good progress in the approval process),  I would argue that IB will only grow in demand. 

I certainly think that--despite the water concerns-- Imperial Beach has been overlooked for too long and that especially in the longer run, 10-15 years from now, having invested in Imperial Beach will prove to have been a wise choice.  If looking for a short-term (under 5 years) return that far out-paces the rest of the county, I don't know how likely that will be, but I'm still optimistic.

My 2 cents.