Nine-Unit Apartment
For Sale
$3,375,000
2605 Madison Ave, San Diego, CA 92116
Unit mix includes one- and two-bedroom floor plans with one- and two-bath layouts.
Property Size6,969 SF
Price / SF$484.29
Days on Market102
Property Features for 2605 Madison Ave
General Information
Standard status
Active
Size
6,969 SF
Net Rentable
6,400 SF
Property subtype
Multi-Family
Units
Unit Mix
4 x 1BR/1BA, 3 x 2BR/1BA, 2 x 2BR/2BA
Multifamily Units
9
Additional Details
Highway Access
Yes
Listing Agency:
Marcus & Millichap
Listed By:
Austin Huffman ahuffman@ipausa.com · License #(S):CA:01981817
(818) 212-2250
Source:
Viewsandiegohouses
Added: Jun 24
Changed: Oct 1
Last Checked: Oct 2 at 9:40PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Marcus & Millichap
Investment Insights
Based on property information with market context.
This nine-unit apartment property at 2605 Madison Ave includes four one-bedroom, one-bath units; three two-bedroom, one-bath units; and two two-bedroom, two-bath units. The configuration totals approximately 6,400 rentable square feet and provides a mix of floor plans across the building.
The property is in San Diego’s North Park neighborhood, with walking access to bars and restaurants along Adams Avenue, El Cajon Blvd, and 30th Street. Morley Field and Balboa Park are approximately two miles away, with recreational amenities including tennis courts, a public pool, baseball fields, hiking trails, a dog park, a disc golf course, a playground, and a bicycle speed track.
Interstate 805 provides regional connectivity, while Interstate 8 and Highway 163 are also accessible. Downtown San Diego, Mission Valley, and Kearny Mesa are identified as nearby employment centers. The property has a bikeScore of 54 and a transitScore of 48.
The property is in San Diego’s North Park neighborhood, with walking access to bars and restaurants along Adams Avenue, El Cajon Blvd, and 30th Street. Morley Field and Balboa Park are approximately two miles away, with recreational amenities including tennis courts, a public pool, baseball fields, hiking trails, a dog park, a disc golf course, a playground, and a bicycle speed track.
Interstate 805 provides regional connectivity, while Interstate 8 and Highway 163 are also accessible. Downtown San Diego, Mission Valley, and Kearny Mesa are identified as nearby employment centers. The property has a bikeScore of 54 and a transitScore of 48.
Key Highlights
- Nine‑unit apartment building totaling approximately 6,400 rentable square feet
- Unit mix includes 4 one‑bedroom/one‑bath, 3 two‑bedroom/one‑bath, and 2 two‑bedroom/two‑bath units
- 2605 Madison Ave in San Diego’s North Park neighborhood
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$115,184
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.41%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,303,680
$2.3M
Cap Rate 7%
$1,645,486
$1.6M
Cap Rate 9%
$1,279,822
$1.3M
Market Conditions
NOI Build-Up for 6,969 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$221.6K $31.80/SF
− Vacancy
−$12.2K −$1.75/SF
EGI
$209.4K $30.05/SF
− OpEx
−$94.2K −$13.52/SF
NOI
$115.2K $16.53/SF
Area
San Diego, CA
Vacancy
5.50%
Lease Rate
$31.80 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,303,680
Cap Rate 7%
$1,645,486
Cap Rate 9%
$1,279,822
Alternative Uses
Best Use
Apartment 5plus
$1.65M
$1.44M – $1.92M
NOI $115,184 @ 7.0% cap · market cap 3.41%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.75M
$2.41M – $3.21M
NOI $192,679 @ 7.0% cap · market cap 5.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
9
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
3,560
Businesses Nearby
Explore this area
Business Placement
Demographics for 92116, CA
31,523
Population
17,827
Households
1.8
Avg Household Size
37
Median Age
58%
College-Educated
96%
High-School Grad
3.4 sq mi
ZIP Area
9,271
Density / Sq Mi
$95,775
Median Household Income
$63,420
Median Earnings
$1,903
Median Rent
$898,500
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in West region
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Frequently Asked Questions
What type of property is this?
Apartment building - Unit mix includes one- and two-bedroom floor plans with one- and two-bath layouts.
Where is this apartment building located?
The property is located at 2605 Madison Ave San Diego, CA.
What is the asking price?
The asking price for this property is $3,375,000.
What are key features of this property?
This property features: Nine‑unit apartment building totaling approximately 6,400 rentable square feet; Unit mix includes 4 one‑bedroom/one‑bath, 3 two‑bedroom/one‑bath, and 2 two‑bedroom/two‑bath units; 2605 Madison Ave in San Diego’s North Park neighborhood
