1240 Holly Avenue

1240–1270 Holly Avenue represents a rare opportunity to acquire a well-maintained, five-unit multifamily asset with meaningful value-add and redevelopment potential in Imperial Beach, San Diego’s southernmost coastal community. The property is situated west of Interstate 5 and approximately two miles from the Pacific Ocean, placing it within a rapidly evolving coastal submarket characterized by sustained renter demand, ongoing revitalization, and increasing investor interest. Long-term family ownership and consistent upkeep underscore the stability and pride of ownership inherent in this offering. The asset comprises approximately 5,260 rentable square feet across five detached single-family-style residences, supplemented by a large 516 square foot rear storage structure. The unit mix includes two 2-bedroom/1-bath units of roughly 860 square feet each, two 3-bedroom/1-bath units of approximately 1,008 square feet each, and one 2-bedroom/2-bath unit of approximately 1,524 square feet. All homes are believed to have been constructed circa 1960 and feature both front and rear yards. Four units are equipped with single-car garages, while one unit offers a covered carport, providing ample on-site parking and enhancing tenant convenience. The generous outdoor areas present opportunities for future enhancements that may support increased rental value. The property has been selectively upgraded over time, including interior and exterior painting, new flooring, entry improvements, plumbing and drain line upgrades, replacement of water valves and fixtures, electrical fixture updates with GFCI outlet enhancements, one roof replacement with tune-ups on remaining roofs, refinished kitchen and bath surfaces, newer wall heaters, and updated fencing. Despite these improvements, current rents remain below market, and ownership estimates an approximate 15 percent total income upside achievable through unit turnover and additional interior modernization. Operationally, 1270 Holly is currently vacant and in turn-key condition, ready to be leased at prevailing market rates. 1268 Holly is occupied on a month-to-month basis at $1,000 per month, with the tenant prepared to vacate upon sale, enabling immediate rent repositioning. This dynamic creates an attractive scenario for investors seeking both near-term cash flow and longer-term value creation while exploring development entitlements for under-utilized portions of the lot. The property is zoned R-3000, permitting detached and attached dwelling units at a maximum density of 14 units per acre. Based on the site’s approximate 0.67-acre footprint, the maximum permitted density is nine dwelling units, with the potential for additional units through the State Density Bonus Law or Accessory Dwelling Units (ADUs), subject to municipal review. Developers may also consider full redevelopment; new primary dwelling units would require discretionary approval, and detailed proposals may be submitted to the City of Imperial Beach Planning Department once project parameters are defined. Numerous recently completed projects in the immediate vicinity provide strong proof of concept for redevelopment in this corridor. With Imperial Beach experiencing ongoing revitalization, improved infrastructure, and sustained private investment, the property offers both current cash flow and long-term appreciation potential. Its proximity to beaches, dining, retail, and major transportation routes further enhances its desirability. This offering is well-suited for investors seeking to expand cash flow, build equity, and capitalize on one of coastal San Diego’s most active and evolving multifamily submarkets. Interested parties may access the property via driveways only.

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Provided By
Listed by Thomas Rico (#112494)
Listing Office: Berkshire Hathaway HomeService (#14788)