| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 80th | Good |
| Demographics | 76th | Best |
| Amenities | 63rd | Best |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 357 Chestnut Ave, Carlsbad, CA, 92008, US |
| Region / Metro | Carlsbad |
| Year of Construction | 1974 |
| Units | 72 |
| Transaction Date | 2021-10-11 |
| Transaction Price | $35,750,000 |
| Buyer | SAN ENRIQUE COMPANY LP |
| Seller | G W WILLIAMS CO |
357 Chestnut Ave Carlsbad Multifamily Investment Thesis
Neighborhood-level indicators point to durable renter demand supported by a high renter-occupied share and elevated area home values, according to WDSuite’s CRE market data. Focus on steady leasing fundamentals rather than outsized growth assumptions, as these metrics reflect neighborhood conditions, not the property itself.
Situated in Carlsbad’s Urban Core, the property benefits from strong day-to-day convenience and lifestyle amenities. Restaurant density ranks 34th among 621 San Diego metro neighborhoods (98th percentile nationally), making the area competitive for foot traffic and services. Grocery options are also abundant (118th of 621; 93rd percentile nationally), while parks rank near the top locally (10th of 621; 100th percentile nationally), supporting quality-of-life drivers that help renter retention.
Renter concentration is elevated at the neighborhood level (54.3% of housing units renter-occupied), suggesting a deeper tenant base for multifamily. Median contract rents in the neighborhood have grown over five years, and home values are high, which tends to sustain reliance on rental housing and can support pricing power over time. These are neighborhood indicators and not property performance.
The asset’s 1974 vintage is older than the neighborhood average construction year of 1988 (161st of 621). Investors should underwrite ongoing capital needs and consider value-add or modernization to strengthen competitive positioning against newer stock.
Within a 3-mile radius, households have increased over the past five years even as overall population was broadly flat, implying smaller household sizes and a larger tenant pool. Projections indicate growth in both households and incomes by 2028, which can expand the renter base and support occupancy stability. At the same time, a rent-to-income ratio of 0.32 at the neighborhood level points to some affordability pressure, requiring attentive lease management and renewal strategies.
Safety indicators show mixed signals. The neighborhood’s crime rank is 186th among 621 San Diego metro neighborhoods, which is competitive within the metro. However, national comparisons place the area below average for safety (violent and property crime percentiles are low nationally). Importantly, property crime trends have improved recently at the neighborhood level, with a one-year decline that ranks in the stronger tier nationally, suggesting some positive momentum. These are neighborhood-level trends and do not describe conditions for any specific property or block.
Nearby employers span energy, biotech, and wireless technology, supporting a diverse professional tenant base and commute convenience for workforce renters. The list below reflects notable employers within a practical drive that can bolster leasing and retention.
- Nrg Energy — energy (2.6 miles)
- Gilead Sciences — biotech/pharma (4.7 miles)
- Qualcomm — wireless & semiconductors (19.4 miles)
- Qualcomm — wireless & semiconductors (19.7 miles) — HQ
- Celgene Corporation — biotech/pharma (20.1 miles)
357 Chestnut Ave offers exposure to a renter-oriented pocket of Carlsbad with strong amenity access and proximity to diverse employment. Neighborhood data shows elevated renter concentration and high home values, which generally sustains multifamily demand and supports pricing power over time. Based on CRE market data from WDSuite, local amenity density is competitive in the metro and ranks high nationally, reinforcing livability advantages that can aid leasing and retention.
The 1974 vintage suggests underwriting for capital improvements or value-add to remain competitive against newer stock. Within a 3-mile radius, household growth and rising incomes are projected to enlarge the tenant base over the next five years, but neighborhood affordability pressure (higher rent-to-income) and below-typical neighborhood occupancy indicate a need for disciplined revenue management and resident retention practices. These are neighborhood-level signals and not property-specific performance.
- Renter-heavy neighborhood and high ownership costs reinforce multifamily demand and potential pricing power
- Strong amenity and park access supports livability and leasing durability
- Employer proximity across energy, biotech, and tech broadens the prospective tenant base
- 1974 vintage presents value-add and modernization opportunities to enhance competitiveness
- Risks: neighborhood affordability pressure and below-typical occupancy call for proactive lease and renewal management