6561 Kelly St
San Diego, CA
Kelly Street Development Opportunity 6531-6561 Kelly Street, San Diego, CA 92111 San Diego apartments routinely rank in the nation’s top 10 markets. Over the last 30 years San Diego County developers have built about half of the apartments and condominiums that were needed for our population growth. All county zip codes have 96% occupancy or better, and that is why thousands of owners can raise the rents faster than inflation. Some experts believe that we have 7 to 10 new jobs for every new apartment or condo that is built. Intense demand and limited new supply makes San Diego a low risk escalator to wealth. These supply and demand truths about San Diego make a lower risk market than 80% of the markets in the nation. Linda Vista, north of I-8 and east of I-5, was developed in World War II as America endeavored to keep the world safe for democracy. After the war the federal government sold much of that housing to its residents. Kelly Street and Tait Street are prime examples of that policy. Consider why this particular census tract is so valuable. San Diego exports advanced education; we have proportionately more colleges and universities than the rest of the nation. One of our three biggest universities is University San Diego, USD. Originally it was a Catholic university and now it is regarded as a premier private institution. Almost 9,000 students attend and more than a third are graduate students. Graduate students tend to be older, wiser, more stable and more desirable as residents. USD is 6/10 of a mile from Kelly Street as the crow flies and approximately a mile as the feet walk or the bicycle pedals. In other words, it’s just minutes from campus. In the last decade hundreds of units have been built close to USD. Some of them rent in excess of $4,000 per month. The mesa that holds Kelly Street and Tait has seen several vintage properties massively redeveloped within the last decade. 500 feet to the northwest and 500 feet to the southeast are two different assets, both of which have benefited from more than $30,000 per unit of upgrades. Knowledgeable sources tell us that another 200 units will be developed in the census tract within the next decade. In other words, this neighborhood is being transformed steadily. In a decade it will be so much different. Some people were wise enough to understand Hillcrest’s upgrading. Others were on the forefront of valuation creation in North Park, Imperial Beach and or Golden Hill. Whether you made money there or not, Kelly Street is your outstanding opportunity. There are two plays: renovate or scrape and rebuild. The 12 units, built in the 40s, are likely to require $50,000 per unit. Such renovation would probably enable an investor to raise the rents 40% or more. Before close of escrow the seller will remove the peeling, lead paint and prime the bare wood. The other option is to scrape this 31,000+ square-foot lot and build up to 31 new units. One model would be to have three-story freestanding townhomes with garages which might sell in the range of $400,000 each. “The Guild at 30th” at the north east corner of 30th and Broadway is an example of this construction style. Another solution would have common walls and perhaps 29 condos or apartments. John Sheehan AIA, co-owner of Studio E Architects, has sketched a plan for this more conservative option. The buyers will determine what they think is best. Neither the seller nor ACI have the expertise to propose the highest and best use or the most profitable design. At least 30 of the county’s smartest builders and scores of renovators will be aware of this opportunity. Within a couple of years this location will be massively improved. We invite your active inquiry into this property. By definition all real estate is unique. This parcel is a rare and distinct opportunity. We welcome your interest in this special asset. ~~ Please respect residents’ privacy.