10 Unit Apartment Building - North Park San Diego, CA

[Drew Chance]

Investment Info:

Large multi-family (5+ units) other investment in San Diego.

Purchase price: $840,000
Cash invested: $3,200,000

Ground up development of 10 apartment units (9 market rate, and 1 affordable unit) - Completed Oct 2022!

What made you interested in investing in this type of deal?

I had wanted to build something from the ground my whole career. This was our first new build, and very proud of the end result.

How did you find this deal and how did you negotiate it?

MLS listed property prior to Covid. Made cash offer and closed within 60 days of acceptance.

How did you finance this deal?

Cash from partners

How did you add value to the deal?

Built 10 units from the ground up.

What was the outcome?

Units were completed almost 3 years to the day from purchase (Socal permitting process is SLOW). Units are fully leased and stabilized as of writing this.

Lessons learned? Challenges?

Just ask... TOO MANY TO LIST HERE. But I am on open book.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes all of the above. Team sport. Lots of good recs for anyone looking to develop in San Diego, CA.

[Drew Chance]

Quote from @Sher J.:

Congrats! No rezoning was needed?  How long was it from acquisition to breaking ground?

Did you sub contract or work with a GC?

No re zoning was necessary. By right we were able to build 5 dwelling units on this site. But if we gave 1 unit to the city as an affordable unit (not section 8, but deed restricted affordable for 55 years), they would allow us to double our base density to ten units. All by right. Plans and permits took us 14 months. Construction took 22 months. Almost 3 years to the day to get our certificate of occupancy from the day we purchased the land. Looking back there are a few months we could have shaved off, but not a ton.