Berkadia is pleased to present the exclusive opportunity to acquire Prime (Little Italy) (the “Property”) a 9-unit luxury apartment community located in the heart of the Little Italy neighborhood of Downtown San Diego. Designed and built by San Diego-based private development firm, InDev LLC, this urban property offers residents a unique, modern living experience complete with studio, one and two-bedroom condominium-quality apartment homes. Each unit features custom designer finishes, open interiors with intriguing views of San Diego Bay and cityscape, 10-foot ceilings*, and expansive floor to ceiling windows.
Prime’s irreplaceable location is defined as a walker’s paradise, boasting a walk score of 97. The Property is surrounded by endless dining, shopping, and entertainment venues. In addition, the Property is in close proximity to San Diego’s historic Gaslamp district, the San Diego Harbor, San Diego International Airport and Balboa Park. Just minutes from the 5 freeway, Pacific Highway, and the San Diego Trolley and Coaster, residents have easy access to all of San Diego County and Southern California.
* Select units have +10ft. ceilings.
PRIME WALKABLE LOCATION
Prime is located in the vibrant and extremely active Little Italy neighborhood of Downtown San Diego. With a walk score of 97 (out of 100), residents are within walking distance of the 48 square blocks that encompass Little Italy with dozens of patio cafes, restaurants, urban wineries, pubs, art galleries, shops, hotels, parks and Little Italy festivities including frequent festivals, events, and the weekly farmers market.
Ideal selection of spacious studio, one, and two-bedroom units with condo quality finishes. A modern industrial design with oriel pop windows that are framed with floor-to-ceiling windows, Prime (Little Italy) offers best-in-class interior finishes including high ceilings, a combination of polished concrete and smoked oak hardwood flooring, custom cabinetry, stainless-steel appliances, quartz countertops, built in storage space, in-unit washer/dryers and a private roof deck with views of the San Diego Bay and cityscape in select units. The intricate attention to detail and planning of Prime (Little Italy) provides residents with a superior living experience.
PROXIMITY TO DOWNTOWN EMPLOYMENT CENTERS
The community’s location and close proximity to major employment centers in Downtown San Diego draw residents to the property. Downtown San Diego is home to more than 5,000 businesses, 85,000 employees, and 10 million square feet of office space and 2 million currently under development. Nearby employers include SEMPRA Energy, Solar Turbines Inc., Manchester Grand Hyatt, San Diego Union Tribune, San Diego Padres, United States Navy, General Dynamics and Bank of America.
SHORT-TERM RENTAL OPPORTUNITY
Prime is uniquely positioned to take advantage of the bourgeoning Airbnb/short-term rental business model. With Prime’s idyllic location and stylish modern interiors, short-term residents can enjoy a luxury living experience in one California’s most vibrant urban locations. With strong tourism demand driven by national/international conventions, world-renown entertainment attractions and near-perfect year-round weather, the hospitality/tourism industry generates over $10.8B in annual revenues. A new investor can capitalize on the insatiable demand for short-term rental options and garner above market monthly revenues, making Prime a unique, multifaceted investment opportunity.
NUMBER OF UNITS
AVERAGE RESIDENTIAL UNIT SF
TOTAL RENTABLE SF
1965 Columbia Street, San Diego, CA 92101
Unit / Type
1 BR / 1 BA
2 BR / 2.5 BA
Prime apartments is located in Little Italy, San Diego’s hip and historic urban neighborhood in the downtown area full of shopping, restaurants, history, and even a walking trail. At 48-square blocks, this vibrant, pedestrian-friendly ethnic community is a bustling residential and business district dating back to the 1920’s, once home to San Diego’s prolific tuna fishing industry. Today, Little Italy is a chic, pedestrian-friendly neighborhood featuring upscale clothing boutiques, and music venues, where quaint patio cafés and piazzas dot the area.
Nearly 70 restaurants, breweries, and bars are located in Little Italy, which has seen many new restaurants and bars pop up in recent years, mixed in with old-school Italian restaurants. As indicated by the name, the neighborhood’s restaurant scene is dominated by Italian cuisine. Craft cocktails, local beers, and wine establishments line the streets of Little Italy. Since 1934, the Waterfront Bar & Grill has been a favorite local watering hole serving locally brewed ales and burgers. You can sample more than 35 in-house beers at Ballast Point Little Italy. Patrons can order a locally sourced plate from the kitchen, grab a seat outside, and watch flights fly overhead toward San Diego’s airport while sipping award-winning brews. Impeccable cuisine and lavish cocktails in an industrial-chic space can be found at the Ironside Fish & Oyster. Locals can’t get enough of Born & Raised, an over-the-top steakhouse all decked out in wood, marble and curbed leather booths. Dozens of cocktails and dishes both savory and sweet are served tableside in custom designed guéridons. Little Italy’s only open-air rooftop lounge, Kettner Exchange, offers a unique variety of libation options including: boutique wines, craft cocktail decanters, individual classic cocktails, and private, self-serve beer taps located right inside private cabanas.
Little Italy’s urban community provides an abundance of entertainment with outdoor concerts, farmer’s markets, summer film festivals, food and art festivals, and so much more. The weekly Little Italy Mercato Farmers’ Market draws crowds to its mix of fresh produce and artisan food. This Italian farmers’ market is one of the biggest in San Diego, attracting an estimated 10,000 visitors a week and features freshly caught fish, vegetables and fruit from local farmers, pastries from local bakeries, and art from local artists.
Other major events include the ArtWalk, the largest art event in the west coast with over 120,000 people coming to purchase paintings, photography, jewelry, and furniture. Festivals in Little Italy include:
Comprised of the 92101 ZIP code, Downtown San Diego serves as the financial center of San Diego County. This 1,450-acre area is home to over 120 tech and innovation startups, 4,380 workplace establishments, and over 81,000 employees. Over $2 billion in investments are currently underway throughout the downtown area; completion of these projects will help support the over 62,000 new jobs that are expected to be added by 2030.
Two industries are leading San Diego’s office market: life sciences and defense. Since 2017, the two industries have accounted for 3 million square feet of leasing activity. With increased funding from congress and venture capital interest, these two industries are poised for even more growth in 2019. While life science is certainly leading the market, defense is still a major industry in the market and a major office user. Defense industry / federal government is the biggest customer of the tech industry in the region, particularly for technology advanced naval, aviation, and communication sectors of the military.
According to the Downtown San Diego Partnership, nearly half (46%) of downtown jobs are supported by the government sector, with hospitality, and information technology rounding out the three largest sector concentrations. One of the top tech hubs in the nation, the 92101 ZIP Code is home to seven incubators / accelerators and eight co-working spaces.
NEW APARTMENT DEVELOPMENT IN LITTLE ITALY
In the Downtown San Diego / Coronado apartment submarket, there are currently nearly 10,000 apartment units in various stages of planning and construction as of January 2019. Even with the new development, Downtown San Diego has nowhere near the number of apartments coming online in other hip and vibrant downtowns such as Dallas, Seattle, Los Angeles, and Denver.
Little Italy in San Diego has undergone a residential boom in the last few years, and the hot spot added 560 new apartments in 2018, further transforming what is already a vibrant downtown neighborhood into a residential hub. About 4,440 new apartments delivered in the entire metropolitan area during 2018, and residential development in Little Italy represented about 12.6% of all new units for the metro. The new developments increased housing stock in Little Italy by nearly 20%, which now contains about 3,000 apartment units. The new apartments have several things in common -- they command higher rents compared to the city average, have maximized space with small unit sizes, and feature amenities that rival high-end condos.
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