Investment areas in San Diego County

San Diego County has many disparately run cities, with San Diego & Chula Vista being the 2 largest. While income property in beach towns or A+ neighborhoods are highly attractive, I wanted to cover some initiatives & areas that you may not be aware of. For investors looking at where there may be opportunities beyond market rents, here are some keys areas I’m targeting for off-market listings.

Some of these opportunities are both value-add opportunities and potential covered land plays if you are not a ground up developer. As cost of capital becomes more favorable for investors who are doing ground up or major commercial expansion, the areas could see more development in the years to come.

1. City of San Diego Complete Communities & Sustainable Development Areas: this is a local initiative to increase density and more housing in areas that are already transit corridors in urban neighborhoods. This program potentially allows a re-development of the lot by increasing density and the number of units significantly. These lots can currently have single family homes, units, or be a commercial space

   1. Many of these areas are established, highly desired neighborhoods, some would be considered A+ neighborhoods but on higher traffic streets, with high walkability scores. They are in close proximity to the airport, restaurants, bars, shops, Balboa Park, downtown San Diego, beaches, UCSD, USD & SDSU universities.

   2. There is high demand for rentals in these communities. You will find a large concentration of multi-family inventory in the County located in this central band, from 2-4 units to apartment buildings

   3. Static map, searchable address, & 2 page overview of Site Eligibility & Program Guidelines

   4. In the news- potential changes by the City Council in 2023

   5. ADU’s & Bonus density ADUs: either garage / property conversion or ground up new ADU’s

   6. Examples of projects:

      1. Secoya on Fifth is an eight-story mixed-use project located at Fifth Avenue and Redwood Street in Uptown San Diego. 3104 Third Avenue is a six-story development is the Uptown District. La Colina is an affordable project in South Mission Hills.

      2. Sasan Apartments in Mission Hills is a 7 story project of 54 studio units.

      3. Mars Building in Normal Heights mixed use 7 story project with 175 studios

      4. Quince Apartments in Bankers Hill is a 17 story, 162 unit project

      5. Del Cerro mixed use 114 apartment units

         

2. Oceanside sits on the very north end of San Diego County. It is strategically convenient for residents who need to travel to Orange County, Los Angeles and the rest of San Diego County.

   1. Just south of Camp Pendleton which has a population of ~70,000 military & civilian personnel. From a rental standpoint, this is a recession insulated industry / pool of renters that need housing nearby

   2. The waterfront has seen a lot of changes in recent years with new restaurants, development occurring throughout Oceanside

3. Federal Opportunity Zones: even if you are not up for ground up development with tax benefits, you can benefit as other investors develop these areas for both commercial & residential. These neighborhoods tend to benefit from the economic growth & potential for jobs from all the investment pouring into the area

   

   1. National City Opportunity Zone (OZ): If you’re not familiar with National City, its a city sitting just south of downtown San Diego and north of Chula Vista.

      1. Close to 32nd St Naval Base, which has ~34,000 military & civilians.

      2. National City also shares a contiguous waterfront with the City of San Diego and Chula Vista. There are multiple waterfront redevelopment efforts

      3. As its own city, it doesn’t fall under the city of San Diego’s STR licensing rules. Inquire with the city of National City to understand its current regulations & fees.

   2. Sherman Heights with the exception of the NW corner also falls within the federal OZ. Sherman Heights is a historic neighborhood that sits east of downtown San Diego, and just south of Golden Hill. You will find historic properties, some of which are historically designated and have Mills Act tax benefits, even in multi-family properties. Some of these properties have views of the waterfront, downtown and the Coronado Bridge. Grant Hill & Logan Heights/Barrio Logan are adjacent neighborhoods with potential, but are also evolving.

I get a lot of questions about crime, I recommend you do you own homework on Crime Mapping and Google for news stories. Set the timeframe for a few months, check/uncheck the crimes you are most concerned with