5502-5506 University Ave 10 Unit Apartment Building $2,795,000 ($279,500/Unit) 5.58% Cap Rate San Diego, CA 92105

5502-06 University Ave, also known as the Aztec Canyon Apartments, is a fully renovated 10-unit multifamily asset located in central San Diego. The property encompasses approximately 5,875 rentable square feet on a generous 21,388 square foot lot, featuring over 15 on-site parking spaces. Originally built in 1950, the building offers a balanced unit mix of (1) 3BD/1BA, (3) 2BD/1BA, and (6) 1BD/1BA units.
All units have undergone extensive, high-quality renovations, including new windows, upgraded kitchens and baths, modern flooring, premium appliances, and in-unit A/C systems. Two of the units are designated as affordable housing.
Unit Mix:
• (1) 3 Bed / 1 Bath
• (3) 2 Bed / 1 Bath
• (6) 1 Bed / 1 Bath
The property also includes a fully operational laundry facility equipped with two washers and two dryers. Tenants are billed back for select utilities, providing operational efficiency. An income-generating billboard is located on-site, with the current lease having expired in January 2025—presenting a value-add opportunity through lease renewal and passive income potential.
A favorable financial component includes an assumable Chase loan with a fixed interest rate of 3.34%, maturing in March 2027.
Zoning & Development Potential:
5502 University Ave falls within the Complete Communities Housing Solution Plan, offering generous development entitlements such as a 6.5 FAR, no height restrictions, and relaxed parking requirements. The Community Plan designates the site for the following uses:
• Residential: 11–15 DU/AC
• Commercial/Mixed-Use: Up to 29 DU/AC, with bonus density up to 43 DU/AC where residential is allowed
Preliminary architectural plans have been drawn to potentially add twenty (20) additional 1BD/1BA units along with supplementary parking at the rear of the site. A slope study, soil report, and full topographical survey are available to support development efforts.