2259 Market St

By-Right 6-Unit ADU Expansion | CC-3-4 Zoning

Top Gun CRE is pleased to present a unique multifamily ADU densification opportunity in Sherman Heights, San Diego. This is a rare opportunity to double the unit count from 6 to 12 units through the by-right construction of 6 new ADUs pursuant to CA SB-1211. The property is improved with an existing 3-story, 6-unit apartment building and includes professionally prepared ADU plans for 3 detached, 2-story structures at the rear of the site.

The plans are currently in final approval stages and should be fully approved and ready to be assumed by a buyer within the next 2-3 months.

The existing building features a total of 4,608 square feet and a unit mix of 1, 2, and 3-bedroom units across 2 floors, with an unfinished basement and exterior parking lot. Built 1927, this well-maintained apartment complex exudes classic charm. The property offers a current gross income of over $10K/month across the 6 existing units, all of which are comprised of existing month-month tenancies.

The proposed ADUs total approximately 2,884 square feet and feature a mix of one- and two-bedroom units, designed to meet current California Building Code and Title 24 energy standards. The units will feature efficient, open-concept living areas, in-unit washers/dryers, and mini-split HVAC systems. Upon completion, the site will support a 12-unit apartment property with modern new-construction units complementing the existing improvements. It is estimated the 6 new ADUs will contribute an additional $13K+/month gross rental income.

The property is zoned CC-3-4 and sits on a 7,500 square foot lot, allowing the development to maximize allowable density while remaining within height and zoning limits. ADU approvals are ministerial, significantly reducing entitlement risk and development timelines.

This offering is well suited for investors seeking development upside, unit-count expansion, and long-term rental income growth in an urban San Diego infill location.