Just Sold – 50 Units in Lemon Grove for $12,200,000

SAN DIEGO, September 9, 2021

ACI Apartments is pleased to announce the recent sale of The Olive Street Apartments, a 50-unit complex located in the Lemon Grove area of San Diego. The 39,840 square foot property, located at 3240 Olive Street, Lemon Grove, CA 91945 was purchased by 3240 Olive Property LLC for $12,200,000.

Mark Morgan of ACI Apartments and Yvonne Oberle of Willis Allen represented the seller, 3240 Olive Property LLC. The Buyer was Lemon Grove Investor 1, LLC and was represented by Dave Savage of ACI Apartments.

The Olive Avenue Apartments consists of 34 – 1 Bedroom /1 Bath units and 16 – 2 Bedroom / 1 Bath units and is located just minutes from downtown San Diego and Balboa Park. 25 of the units have substantially upgraded kitchens, baths, paint, and flooring. This property has the opportunity for increased rents.

The Olive Avenue Apartments are located on a 1.74-acre lot in the City of Lemon Grove and sold for $244,000 per unit.  The value indicators at time of sale were:  Gross Rent Multiplier (GRM) 13.8 and Capitalization Rate (CAP Rate) of 4.8%.  Additionally, the purchase price per square foot was $306.22.  The rental rates for the 1 Bedroom / 1 Bath units at time of sale averaged $1,316 per unit per month.  The rental rates for the 2 Bedroom / 1 Bath units at time of sale averaged $1,629 per unit per month. There was one unit vacant at time of sale that was being renovated.  The property enjoys a gated entrance, pool, gated ample on-site parking, and a spacious laundry room.

“Should the new owner continue to renovate the last 25 units, The Olive Avenue Apartments have the potential to yield a 5+ Cap rate making this a solid income property investment in a submarket poised for future rent growth” says Mark Morgan of ACI Apartments.

 

About ACI Apartments INC.

Since 1982, ACI Apartments has been a leader in San Diego apartment investment. With over 148 years of combined leadership experience between its senior staff, ACI has helped countless clients reach their investing goals through billions in transaction revenue. Dave Savage has extensive East County experience having closed over 70 transactions there throughout his career. Please visit us online for more information at www.aciapartments.com