Highland Courtyard 2005 Highland Ave 24 Unit Apartment Building $5,750,000 ($239,583/Unit) 5.28% Cap Rate National City, CA 91950

Highland 22 presents an adaptive-reuse investment opportunity at 2005 Highland Avenue in National City. Offered at $5,750,000, the approximately 9,000-square-foot, two-story low-rise courtyard property was built in 1975 and occupies two parcels totaling approximately 10,890 square feet. The property includes 20 surface parking spaces, exterior walk-up access, prominent Highland Avenue frontage, monument signage and convenient public-transit access.
The current redevelopment concept consists of 22 proposed residential apartments - 17 studios and five one-bedroom units - plus two separately leased telecommunications spaces. T-Mobile and Midpoint Towers occupy the two nonresidential telecom spaces. The marketable residential count is therefore 22 proposed apartments, with the telecom leases presented as separate income components.
Ten studio units have been substantially built out for intended residential use. These units are not represented as permitted, approved, legally occupiable or rent-ready. Before residential occupancy, the project will require City review and applicable plans, permits, inspections, corrective work and occupancy authorization. The remaining concept contemplates 12 additional apartments - seven studios and five one-bedroom units - subject to City approval. Buyers must independently verify the proposed residential count, density, use, parking, utility capacity, building-code requirements, permit pathway and all other development matters.
Two existing long-term telecommunications leases provide in-place cash flow during the completion and lease-up period. T-Mobile currently pays $2,200 per month and Midpoint Towers currently pays $1,200 per month, for combined current income of $3,400 per month, or $40,800 per year. The leases reportedly include annual increases, although the marketing underwriting uses only today's rental amounts. Buyers should review the lease documents, remaining terms, escalation schedules, assignment provisions and tenant obligations during due diligence.
At the full asking price, Seller will consider providing up to $500,000 toward permitting, corrective work and completion of the residential conversion. The allowance is subject to mutually acceptable terms, documented costs and lender approval and is not automatically available with a reduced-price offer. Seller and Buyer may structure the allowance through an agreed escrow, holdback or controlled-payment process. Price and allowance will be negotiated together as part of the overall transaction.
Preliminary marketing assumptions estimate stabilized residential net operating income of approximately $303,690 before replacement reserves for the 22 proposed apartments. Adding the current telecommunications rent produces approximately $344,490 of total indicated annual NOI. These estimates rely on historical lease-rate assumptions, a 5% residential vacancy allowance and a $32,000 property-tax assumption. A change of ownership may result in reassessment and a higher property-tax expense. All projections are illustrative only and must be independently verified by prospective buyers and their advisors.
The property is currently mapped MXC-2, Major Mixed-Use Corridor, by the City of National City. The proposed residential configuration, density, use, parking, construction scope and permit pathway remain subject to City review and approval. No representation is made that the 22-unit residential concept is currently entitled, permitted or authorized for occupancy.
Located approximately five miles south of Downtown San Diego, 2005 Highland Avenue offers access to Interstate 5, Interstate 805 and State Route 54, together with visibility and public-transit service along Highland Avenue. The central courtyard, exterior unit access, on-site parking and existing building configuration provide a practical foundation for an experienced investor or developer pursuing adaptive reuse, corrective construction, lease-up and long-term ownership in the South Bay market.
The property is offered in its present as-is condition. Prospective buyers should conduct independent investigations of zoning, land use, density, permits, code compliance, construction quality, remaining costs, utilities, parking, environmental matters, title, telecommunications leases, rent assumptions, operating expenses, property taxes and all other matters affecting the property. Seller and Broker make no guarantee regarding future approvals, completion cost, lease-up timing, rents, expenses or investment performance.