Project Description


North Park, San Diego – 4,900 Square Foot Mixed Use Building in the North Park submarket of San Diego, California

Issues Prior To Acquisition:

  • Extensive physical issues as owner hadn’t addressed the building systems in 30 years.
  • 50% vacancy in ground floor commercial spaces
  • Rental rates 50% below market
  • Upstairs apartment units were vastly under-utilized given the property’s enviable location

DVP Actions:

Vacated the long term apartment tenants immediately.  Engaged a team to create a modular floorplan to achieve maximum flexibility to lease as short term rentals.  Vacated the retail tenant on the first floor and plan to lease to a coffee shop or complimentary use to upstairs short term guests.  Additionally, add 2 studio lofts on ground floor to maximize residential income.


The property was acquired at a 40% discount to comparable buildings in the area with an 83% LTV bridge loan.  Proforma revenue calls for a quadrupling of revenue by addressing a market need for short term rentals in the rapidly growing area.

Projected Returns:

60% of capital returned to investors after 12 months.  25% Leveraged Return on Investment, 7.7% Cash on Cash on a 5-year average to investors.

Purchased for $1,170,000 in 2016.  Appraised for $1,400,000 in escrow and has an estimated value of $2,200,000 at prevailing cap rates upon business plan is execution.