©2025 Apartment Consultants, Inc. This information has been secured from sources we believe to be reliable, but we make no representations or warranties  to the accuracy of the information. Buyer to verify all information and bears all risk for any inaccuracies.

This professionally managed and well-maintained property offers immediate stability with built-in value-add potential. With one unit undergoing a full top-to-bottom renovation and two additional units becoming available in mid-March, buyers have a prime opportunity to capitalize on La Mesa’s rising rental market and increase returns.

Prime Investment Opportunity – 7425 Waite Dr, La Mesa

Among active comparables in the area, this 12-unit property stands out as the superior investment option. It boasts the lowest Gross Rent Multiplier (GRM) (11.96) among available properties while also offering the highest CAP rate (5.18%)—outperforming competitors by nearly 1% in some cases.

Market indicators suggest a valuation closer to $4,500,000, making its current pricing a compelling opportunity for investors seeking strong returns. Additionally, with two units becoming available in mid-March and one undergoing a full renovation, there is immediate potential to push rents toward the 75th percentile based on current market trends.

With professionally managed, well-maintained units and significant upside in rental income, this property is positioned for long-term appreciation and strong cash flow.

©2025 Apartment Consultants, Inc. This information has been secured from sources we believe to be reliable, but we make no representations or warranties  to the accuracy of the information. Buyer to verify all information and bears all risk for any inaccuracies.

When evaluating investment potential, active comparables provide a more reliable benchmark than sold comparables, as CoStar's reporting on CAP rates and GRM often lacks accuracy and consistency. CAP rates in the area typically hover around the low 5% range, aligning with the subject property, while GRM calculations are often skewed due to missing or unreliable gross scheduled income data in CoStar reports. To gain a clearer understanding of market trends, the following data points offer a more accurate representation of sold comps in the area.

Sold Comparables Data (2.5 mile radius and similar building styles: 

• Average Price Per Unit: $296,000 - $314,0000
• Average Cap Rate: 5.02% - 5.34%
• Average GRM (low reporting) - 12.12
• Average Price Per Sqft: $370 - $385
• Unit Make up: 15.7% studios, 18.89% 1 bedrooms, 55% 2 bedrooms, 10.4% 3 bedrooms 

How the subject property compares to sold comps:

• $345,000 price per unit - reflects well maintained, recent upgrades, and strong rents
• 5.18% cap rate - Median of sold comps and is nearly 1% better than other active comps
• 11.96 GRM - lower than most sold comps
• $409 price per sqft - reflecting recent upgrades (4 units new kitchen cabinets, flooring upgrades etc)
• 100% 2 bedrooms. Studios have some of the highest vacancy rates in San Diego. Consistent unit mix provides ease of management.

Our Analysis:

This 12-unit townhome-style property presents an exceptional investment opportunity in La Mesa, a high-demand rental submarket of San Diego County. With a solid CAP rate, below-market GRM, and rental upside, this property is well-positioned for both stable cash flow and long-term appreciation.

Key Investment Strengths:
High CAP Rate for the Market – At 5.18% (current) and 5.65% (market proforma), this property outperforms many comparable assets in San Diego, offering investors a strong return relative to the market.

Attractive GRM Compared to Active Listings – With a current GRM of 11.96 and market GRM of 11.30, this property is priced more competitively than many similar multifamily investments, enhancing its value relative to rental income potential.

Immediate Value-Add Potential – Two units will be vacant by mid-March, and another is undergoing a full renovation, providing the opportunity to increase rental income immediately by pushing rents toward the 75th percentile in the area.

Stable Income & Strong Market Rent Growth –

Current Gross Scheduled Income: $346,978
Proforma Gross Scheduled Income: $367,396

La Mesa rental rates continue to trend upward, making this an ideal time to reposition units for higher rents.

Well-Maintained with Recent Upgrades – The property has been professionally managed, ensuring operational stability, and major improvements have already been completed, including new dual-pane windows, kitchen updates, and flooring replacements in many units.

Favorable Loan Terms & Cash Flow Potential – With a 49.4% down payment and a debt coverage ratio of 1.45 (current) and 1.58 (market), this property offers a healthy balance between financing and income generation, making it a low-risk acquisition in a high-demand market.

Prime Location in a Thriving Submarket – La Mesa offers:

Easy access to Highway 94, making it attractive for tenants commuting to San Diego.
Walking distance to major retail, grocery stores, and restaurants.
Proximity to Chollas Lake Park, a desirable amenity for renters.

Final Thoughts:

This property provides investors with immediate rental upside, a competitive CAP rate, and strong long-term appreciation potential in the high-growth San Diego multifamily market. With rising rental demand, professional management, and a well-maintained asset, this is an excellent opportunity to secure a stable and appreciating investment.

Add up to 8 ADU's!

Buyer to confirm all details

SB 1211 Explained:

​Senate Bill 1211 (SB 1211), enacted in California and effective January 1, 2025, introduces significant changes to the development of Accessory Dwelling Units (ADUs) on multifamily properties. This legislation allows property owners to construct up to eight detached ADUs on a lot with existing multifamily dwellings, provided the number of ADUs does not exceed the number of existing units on the property. ​

For example, a property with six existing multifamily units can add up to six detached ADUs; a property with ten units can add up to eight ADUs, as that is the maximum permitted. ​

Additionally, SB 1211 facilitates the conversion of non-habitable spaces—such as garages, storage rooms, or boiler rooms—into ADUs. Property owners can convert existing non-livable spaces within multifamily structures into new units, with the number of such conversions capped at 25% of the existing units. For instance, a property with eight units could convert two non-habitable spaces into ADUs (8 units × 25% = 2).

The bill also removes the requirement to replace parking spaces that are repurposed for ADU development, streamlining the process and reducing costs associated with constructing new parking areas. ​

In the context of San Diego, SB 1211 aligns with the city's ongoing efforts to address housing shortages by promoting the development of ADUs. Local regulations may further influence specific requirements, such as setbacks, height restrictions, and design standards. Property owners are encouraged to consult with local planning departments to ensure compliance with both state and municipal regulations when planning ADU projects.