Hillcrest Multifamily Investment
For Sale
$4,799,000
3939 7th Avenue, San Diego, CA 92103
Sixteen renovated studios near Whole Foods and Scripps Mercy Hospital.
Property Size8,568 SF
Lot Size0.13 Acres
Price / SF$560.11
Days on Market153
Property Features for 3939 7th Avenue
General Information
Standard status
Active
Size
8,568 SF
Lot size
0.13 Acres
Net Operating Income
$241,963
Building Details
Buildings
1
Listing Agency:
NorthMarq - San Diego
(415) 250-4947
Listed By:
Benn Vogelsang · License #DRE01883437
(415) 250-4947
Source:
Evrealestate
Added: Apr 2
Changed: Aug 26
Last Checked: Aug 31 at 3:45PM
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 NorthMarq - San Diego
Investment Insights
Based on property information with market context.
Located in the heart of Hillcrest, La Palma at 3939 7th Avenue is a multifamily property featuring sixteen 500-square-foot studios. Constructed in 1928, the 8,568-square-foot building is situated on a 5,697-square-foot lot. The units have been renovated and include faux hardwood floors, brushed nickel fixtures, stainless steel appliances, new cabinets, quartz countertops, spacious floorplans, in-unit laundry, and full closets. The property includes interior common hallways, rooftop storage, and on-site laundry facilities. Current rents can be increased to market rates, supplemented by utility billback income. The property is located across from Whole Foods and blocks from Scripps Mercy Hospital and the shopping, entertainment, business, and transit options on University Avenue. The location has a walk score of 97, a bike score of 77, and a transit score of 52.
Key Highlights
- Prime location in Hillcrest, across from Whole Foods and close to Scripps Mercy Hospital, University Avenue shopping, entertainment, and transit.
- Fully renovated studios with faux hardwood floors, stainless steel appliances, quartz countertops, and in‑unit laundry.**
- Strong walk score of 97, designated as a 'Walker's Paradise'.**
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
$141,612
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
2.95%
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%
$2,832,240
$2.8M
Cap Rate 7%
$2,023,029
$2.0M
Cap Rate 9%
$1,573,467
$1.6M
Market Conditions
NOI Build-Up for 8,568 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
$272.5K $31.80/SF
− Vacancy
−$15.0K −$1.75/SF
EGI
$257.5K $30.05/SF
− OpEx
−$115.9K −$13.52/SF
NOI
$141.6K $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%
$2,832,240
Cap Rate 7%
$2,023,029
Cap Rate 9%
$1,573,467
Alternative Uses
Best Use
Apartment 5plus
$2.02M
$1.77M – $2.36M
NOI $141,612 @ 7.0% cap · market cap 2.95%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$3.38M
$2.96M – $3.95M
NOI $236,888 @ 7.0% cap · market cap 4.94%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
6,633
Businesses Nearby
Explore this area
Business Placement
Demographics for 92103, CA
33,311
Population
21,363
Households
1.6
Avg Household Size
42
Median Age
63%
College-Educated
97%
High-School Grad
3.7 sq mi
ZIP Area
9,003
Density / Sq Mi
$96,887
Median Household Income
$69,732
Median Earnings
$2,020
Median Rent
$986,800
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Apartment building - Sixteen renovated studios near Whole Foods and Scripps Mercy Hospital.
Where is this apartment building located?
The property is located at 3939 7th Avenue San Diego, CA.
What is the asking price?
The asking price for this property is $4,799,000.
What are key features of this property?
This property features: Prime location in Hillcrest, across from Whole Foods and close to Scripps Mercy Hospital, University Avenue shopping, entertainment, and transit.; Fully renovated studios with faux hardwood floors, stainless steel appliances, quartz countertops, and in‑unit laundry.**; Strong walk score of 97, designated as a 'Walker's Paradise'.**
