619-990-4436
3684 42nd St, San Diego 92105
(7) 2 bedroom 1 bath units
$8850 in monthly income
Vaulted Ceilings, some remodeled bathrooms/kitchens.
3684 42nd St, San Diego 92105 – 7-Unit Apartment Case Study (City Heights)
Property Overview
3684 42nd Street is a 7-unit apartment property located in the high-demand City Heights submarket. The asset consists entirely of (7) two-bedroom / one-bath units, a unit mix that consistently outperforms in working-class neighborhoods due to broad tenant appeal and stable occupancy.
The property sits on a quiet residential block near University Avenue and multiple transit corridors, giving it powerful renter demand drivers.
Investment Highlights
Sold For: $1,400,000
Unit Mix: (7) 2BD / 1BA
Monthly Income at Sale: $8,850
Submarket: City Heights – one of the highest-absorption submarkets in Metro San Diego
Property Type: Small multifamily (7 units)
Buyer Profile: Private long-term investor
The strong in-place rents and consistent occupancy made it a highly attractive stabilized acquisition for small multifamily investors focused on durable cash flow.
City Heights Submarket Insight
City Heights remains one of the most competitive apartment rental markets in the entire county. Several trends continue to push demand—and values—upward:
Severe shortage of mid-sized units like 2BD apartments
High turnover of outdated rental stock being repositioned
Strong workforce tenant base with low vacancy
Proximity to major employment centers via the 15, 805, and 94 freeways
For investors, these factors create a rare combination of reliable cash flow, strong rent growth, and year-round leasing velocity.
This case is a textbook example of why City Heights remains a core target for small-to-mid-sized multifamily buyers.
Strategic Advisory Narrative
Representing the seller, Arby crafted a disposition strategy focused on capturing peak pricing within the 5–10 unit buyer pool—one of the most competitive segments in San Diego multifamily.
Key advisory components included:
A valuation anchored in City Heights-specific GRM and cap rate comps, not generic countywide data
Positioning the asset as a “durable cash-flow vehicle” rather than a value-add project
Leveraging buyer demand for 2BD units, which outperform 1BDs in this submarket
Controlled marketing and qualified-buyer targeting to ensure a smooth process with minimal tenant disruption
The result was a clean, efficient transaction in a submarket where market-ready properties rarely sit for long.
Outcome
The property sold for $1,400,000, aligning with strong pricing benchmarks for 7-unit buildings in this part of Metro San Diego. Investors were drawn to the consistent monthly income, stable tenancy, and the long-term viability of City Heights as a high-absorption rental hub.
This sale reinforces Arby’s ability to deliver premium results for small multifamily owners in San Diego’s most competitive infill neighborhoods.
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