Case Study: 4647 University Avenue, San Diego, CA

Property Overview

The property at 4647 University Avenue is a freestanding commercial building located in the dense, high traffic City Heights corridor, one of San Diego’s most active retail and redevelopment submarkets.

The College Area submarket has continued to see strong investor demand for smaller multifamily assets near San Diego State University. Recent transactions confirm this trend, including a nearby College Area apartment sale reported by the San Diego Business Journal that highlights continued interest in value-add apartment properties.

Transaction Summary

Sale Price: $3,600,000

Building Size: 8,227 SqFt

Lot Size: 19,000 SqFt

Asset Type: Retail / Warehouse / Commercial Investment

Lease Structure: Single Tenant Gross Lease

Cap Rate: 6%+

Representation: Seller Representation

Advisory Narrative

This transaction highlights the strength of the University Avenue corridor and the continued demand for well located commercial assets within infill San Diego neighborhoods.

More details here https://www.sdbj.com/wp-content/uploads/2022/08/2020-CRE-Preview.pdf

Attractive Combination of Income and Redevelopment Potential

The property offered a compelling blend of a large 19,000 SqFt parcel, stable in place cash flow, a 6%+ cap rate which is rare for central San Diego, and long term zoning and redevelopment upside.

Its position along University Avenue, a major commercial corridor, expanded the buyer pool and generated strong investor interest.

High Demand City Heights Submarket

City Heights continues to attract value add investors, local business operators, and developers assembling frontage along University Avenue.

The property’s location, accessibility, and tenant stability positioned it as a reliable income producing asset with future strategic potential.

Clean and Efficient Transaction Execution

Many properties along University Avenue face challenges such as incomplete records or operational inconsistencies. This sale stood out because the transaction process was organized and transparent.

Key elements included clear financial documentation, a verified tenant estoppel, transparent rent and expense structure, and minimal deal friction.

The result was a smooth closing process at full value and a strong outcome for the seller.

Considering a Sale?

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