La Jolla apartment building sells for record $8.95 million
A married couple from La Jolla, who wished to remain anonymous, have purchased the 17-unit “In Eden” apartment complex at Prospect and Cuvier streets for approximately $8.95 million. The seller was Eden Suites LLC of Los Angeles.
San Diego Business Journal, Marcus & Millichap Real Estate Investment Services, who represented the seller, reported that the sale price set a countywide record, with each unit selling for approximately $526,471 — or a little more than $719 per square foot. (Aaron Bove and Ben Tashakorian of Marcus & Millichap were the agents on the sale.)
The 12,442-square-foot complex at 600-616 Prospect St. was built in 1960, and features unobstructed ocean views from each unit.
The building, near the Museum of Contemporary Art and La Jolla Rec Center, was on the market less than a month, garnering offers from seven bidders. The previous owner, a woman in her eighties, lived at the complex for the past 25 years, said Dave Plutner, broker-owner of Encinitas-based DP Properties, who represented the buyer.
Plutner said the new owners intend to continue offering the units as apartments, which currently rent for about $2,000 for one-bedrooms and $3,000 for two-bedrooms.
An ad for the property at loopnet.com touts the complex as being “an exceptional opportunity for investors.”
“Significant rental upside is achievable due to the current strength of the market and can be further achieved through a renovation of the existing units,” the ad states. “In addition, a more aggressive management plan could be implemented immediately to increase rents while lease terms can also be manipulated to further maximize returns during peak seasons such as vacation rentals.”
The ad states that the two-parcel property is zoned to allow 29 units per acre “and other cultural uses such as private clubs, museums public and private libraries and churches.”
Current zoning also allows eight luxury townhomes or condominiums of around 2,400 square feet each.