| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 77th | Fair |
| Demographics | 71st | Good |
| Amenities | 16th | Poor |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 185 Saxony Rd, Encinitas, CA, 92024, US |
| Region / Metro | Encinitas |
| Year of Construction | 1988 |
| Units | 29 |
| Transaction Date | 2024-02-14 |
| Transaction Price | $12,650,000 |
| Buyer | GEMMA ORKA HOLDINGS LLC |
| Seller | THOMAS MILTON FUNKE TRUST |
185 Saxony Rd Encinitas Multifamily Investment
This 29-unit property serves an affluent coastal market with median household income of $171,276 and strong rental demand fundamentals. Neighborhood occupancy trends indicate competitive positioning in the San Diego metro according to CRE market data from WDSuite.
Located in Encinitas' suburban landscape, this neighborhood ranks in the top quartile nationally for demographics with 35.5% of residents holding bachelor's degrees. The area's median home value of nearly $2 million reinforces rental demand by keeping households in the multifamily market rather than transitioning to ownership. Within a 3-mile radius, demographic statistics show 37.3% of housing units are renter-occupied, supporting a substantial tenant base for multifamily properties.
Built in 1988, this property aligns with the neighborhood's average construction year of 1982, suggesting consistent building stock that may present value-add renovation opportunities for investors focused on capital improvements. The area's median contract rent of $2,350 ranks 207th among 621 metro neighborhoods, indicating competitive rental pricing within the San Diego market.
Amenity access presents mixed signals for tenant retention. While the neighborhood ranks in the top quartile nationally for park density with 3.55 parks per square mile, commercial amenities like restaurants, cafes, and grocery stores show limited walkable options. However, the affluent resident profile and coastal location help maintain appeal despite lower commercial amenity scores.
Demographic projections through 2028 show household income growth continuing, with median income forecast to reach $222,288 and mean income climbing to $267,277. This income trajectory supports rent growth potential, though investors should monitor the forecast shift toward higher ownership rates that could impact rental pool depth over time.
Property crime trends show improvement with a 10.8% decline over the past year, though the neighborhood's property offense rate of 2,434 per 100,000 residents ranks 464th among 621 metro neighborhoods. Violent crime rates have decreased more substantially by 21.7% year-over-year, with the violent offense rate of 237 per 100,000 residents placing the area in the 18th percentile nationally.
While crime metrics indicate room for improvement relative to other San Diego neighborhoods, the declining trend in both property and violent offenses suggests stabilizing conditions that may support tenant retention and property values over time.
The property benefits from proximity to major corporate employers in San Diego's technology and energy sectors, providing workforce housing opportunities for professional tenants.
- Nrg Energy — energy services (5.5 miles)
- Gilead Sciences — biotechnology (10.9 miles)
- Qualcomm — technology — HQ (11.8 miles)
- Celgene Corporation — pharmaceuticals (12.2 miles)
This Encinitas property offers exposure to one of San Diego's most affluent submarkets, with neighborhood household income ranking in the 97th percentile nationally and elevated home values that sustain rental demand. The 1988 construction vintage presents value-add potential through strategic renovations, while the coastal location and educated resident base provide defensive characteristics during market cycles. Demographic projections show continued income growth through 2028, supporting rent escalation opportunities for patient capital.
However, investors should consider the area's mixed amenity profile and occupancy trends that rank below metro averages. The forecast increase in homeownership rates could gradually reduce the rental pool, requiring active lease management and competitive positioning to maintain occupancy levels.
- High-income tenant base with median household income of $171,276
- Value-add renovation potential in 1988-vintage property
- Elevated home values reinforce rental market demand
- Proximity to major technology and biotech employers
- Risk: Below-average neighborhood occupancy requires active management