Clairemont Garden-Style Apartment
For Sale
Contact for pricing
Pending
5005 Diane Ave, San Diego, CA 92117
Well-maintained 27-unit apartment community with significant rental upside.
Property Size26,175 SF
Days on Market181
Property Features for 5005 Diane Ave
General Information
Standard status
Pending
Size
26,175 SF
Property subtype
Multifamily
Investment Type
Value Add
Building Details
Year Built
1970
Buildings
1
Stories
2
Units
27
Listing Agency:
CBRE - San Diego
(858) 546-2645
Listed By:
Nate Pepper · License #CA 01993739
Source:
Crexi
Added: Feb 13
Changed: Aug 8
Last Checked: Jul 24 at 5:12PM
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 CBRE - San Diego
Investment Insights
Based on property information with market context.
The Royal Diane Apartments is a 27-unit garden-style apartment community located in the Clairemont submarket. The property offers investors the opportunity to acquire a strategically located asset with significant upside near major retail centers and employment hubs in San Diego. The property consists of eight 1 Bed / 1 Bath units (650 SF) and nineteen 2 Bed / 2 Bath units (1,100 SF). Community amenities include secure gated access, on-site parking with 27 spaces, and on-site laundry. The floor plans feature large bedrooms, dedicated dining areas, large storage closets, storage nooks, and private balconies or patios. There is significant rental upside by completing further interior renovations. Most units have already received various interior upgrades including new LVP flooring, refreshed kitchen cabinets, and new appliances. Current ownership has recently completed significant capex projects including a new roof in 2024, updated electrical panels (main panel & individual interior panels), and new exterior paint. The building also recently passed SB 721 inspections. The property is located directly across the street from a major retail center and is also near numerous other grocery stores, restaurants, and shopping destinations. Residents enjoy easy access to both the I-805 and the 52 Freeways and are within a 10-15 minute drive of La Jolla beaches and San Diego’s most notable employment hubs such as University City, Kearny Mesa, Mission Valley, and downtown, ideally positioning the property to benefit from future nearby job growth.
Key Highlights
- Significant rental upside potential through further interior renovations.
- Strategically located in the rarely available Clairemont submarket, near major retail centers and employment hubs.
- Recent significant capital improvements, including a new roof (2024), updated electrical panels, and new exterior paint.
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
$432,622
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
5.15%
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%
$8,652,440
$8.7M
Cap Rate 7%
$6,180,314
$6.2M
Cap Rate 9%
$4,806,911
$4.8M
Market Conditions
NOI Build-Up for 26,175 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
$832.4K $31.80/SF
− Vacancy
−$45.8K −$1.75/SF
EGI
$786.6K $30.05/SF
− OpEx
−$354.0K −$13.52/SF
NOI
$432.6K $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%
$8,652,440
Cap Rate 7%
$6,180,314
Cap Rate 9%
$4,806,911
Alternative Uses
Best Use
Apartment 5plus
$6.18M
$5.41M – $7.21M
NOI $432,622 @ 7.0% cap · market cap 5.15%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$10.34M
$9.05M – $12.06M
NOI $723,686 @ 7.0% cap · market cap 8.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
420
Businesses Nearby
Explore this area
Business Placement
Demographics for 92117, CA
51,505
Population
21,706
Households
2.4
Avg Household Size
40
Median Age
51%
College-Educated
91%
High-School Grad
8.7 sq mi
ZIP Area
5,920
Density / Sq Mi
$105,286
Median Household Income
$58,135
Median Earnings
$2,115
Median Rent
$914,400
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Well-maintained 27-unit apartment community with significant rental upside.
Where is this apartment building located?
The property is located at 5005 Diane Ave San Diego, CA.
What is the asking price?
The asking price for this property is $8,400,000.
What are key features of this property?
This property features: Significant rental upside potential through further interior renovations.; Strategically located in the rarely available Clairemont submarket, near major retail centers and employment hubs.; Recent significant capital improvements, including a **new roof (2024), updated electrical panels, and new exterior paint.**
