3738-40 Van Dyke Ave, San Diego, CA 92105

3738-40 Van Dyke Ave presents the opportunity to acquire a high-yield, 11-unit multifamily property in Central San Diego. Built in the 1980s, this well maintained asset offers significant upside potential, including the possibility for notable ADU development. Recent cap-ex includes new roofs in 2025, water supply line pulled from slab and re-routed to exterior of property, and dual pane windows in the last 10 years Ideally situated in the most desirable section of City Heights—west of Fairmount Avenue—the property benefits from a highly walkable location near retail centers, dining, and entertainment. Within just two blocks, residents have access to the City Heights Recreation Center, Park, Library, Mid-City Gym, Farmer’s Market, and the bustling City Heights Center, which features Starbucks, Denny’s, Chase Bank, El Super Market, and more. The property sits on an 11,695-square-foot lot and consists of two separate buildings, totaling 7,584 rentable square feet, with an additional 1,200-1,300 square feet of garage space. The unit mix includes (6) two-bedroom, one-bath units and (5) one-bedroom, one-bath units. On-site parking is ample, with 12 spaces in the front, 8 garage spaces in the rear, and an additional 3 parallel spaces if the garages are converted to ADUs. Recent property upgrades include new dual-pane windows, fresh exterior paint, and new roofs in process of installation. Currently, the asset generates strong in-place financial metrics, achieving a 5.91% cap rate on in-place rents and a 6.18% cap rate with the currently available rent increases. Investors looking to maximize returns can renovate the remaining units to target a pro forma cap rate of 7.26%, excluding renovation costs. Additionally, the 8 garage spaces offer additional income potential, with projected rents of $150 per single garage and $250 per double garage, included for in-place cap rate metrics. Alternatively, the garages present an opportunity for notable ADU development, with city zoning and square footage allowances supporting up to (3) 400-425 sqft 1 Bed / 1 Bath ADUs.