Site of Burned Down Motel in East County San Diego Sells to Multifamily Developer for $1.5 Million - CBRE
06 Jan 2020
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San Diego – CBRE has announced the sale of the site of a burned down motel in La Mesa, San Diego, for $1.5 million to GenProp, LLC, a San Diego-based real estate investment and development firm focused on middle market rental housing.
San Diego multifamily experts Erik Anderson and John Newton represented the buyer in the transaction. The seller, Bakersfield, Calif.-based hospitality company Laxmi Hotels, was represented by an outside broker.
Located at 4210 Spring Street, the 0.76-acre site was previously home to 44-room motel that burned down in 2015. The seller had owned the site as vacant land prior to the transaction.
The property is adjacent to the SR 94 and SR 125 junction, providing quick access to the surrounding communities. A new retail development was recently completed across the street from the site in 2019. The property is walking distance from the Spring Street Trolley Station that connects La Mesa to Downtown San Diego and other employment hubs.
“The complexities of working with a non-local seller on the sale of a burned down hotel site provided some unique challenges, but we were able to work closely with GenProp to ensure that they will be able to develop a high quality asset in the strong suburban neighborhood of La Mesa,” said Anderson. “Our CBRE team was able to negotiate a below market value for our buyer, creating a positive outcome for all of the involved parties”
East County San Diego has been the submarket with the highest rent growth and lowest vacancy in the region this year, according to CBRE research. The area offers an alternative to San Diego’s more expensive central business district hubs, providing workforce housing – a popular multifamily investment segment - in a convenient and accessible location.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.