1627 Ocean Front Street just sold for over $2 million.
(This article is more of an “FYI”.)
The continuing process of gentrification in Ocean Beach is clearly demonstrated in the recent sale of a three-story “penthouse” on Ocean Front Street for a cool $2.2 million. It also shows that not everyone is hurting during this Great Recession.
The 5-unit cliff-hugger was purchased by Robert and Grace Pedigo of La Mesa. Located at 1627 Ocean Front Street, it’s on that section where the street twists and turns as it parallels the cliffs, and it seems more like an alley. The towering three-story edifice sticks out one end onto the cliffs, and the other end onto the alley-looking street. Seller Richard N. Sager, trustee of a trust, recently renovated part of the building to look like an ocean front penthouse.
The five units include the creme de la creme – a one 3 bedroom, 2 bath place with a total of 1800 square feet of penthouse; it also has three 2 bedroom, 2 bath units, and finally a one-bedroom place.
South Coast Commercial represented the seller, and San Diego Investment Brokers, represented the buyers; final purchase price: $2.18 million.
Obviously, any money being injected into our cooled off economy is a good thing. And the money will slowly, slowly, trickle down – or around. But the very rich were never hurting during the high unemployment and high rate of foreclosures this country has experienced over the last three years.
This sale is part of the continuing process of gentrification in OB, as the building passes from one owner to another, and the high sale price will probably be passed off to the renters. This translates to a scenario where there are less and less Ocean Beach units available to ordinary people. Gentrification, by definition.
{ 4 comments… read them below or add one }
I would think if you had a cardboard box on that lot, that it would go for $1 million. I lived for several year above a garage fifty feet from this property and even 25 years ago could not ever see being able to afford one of these properties. This has never been a middle class rental.
I’m gonna have to go against the tide on this one too – $2.2M for 5 units is an average $440,000 per unit. That’s probably a little steep for the 1 bed, but a pretty good deal on the 2/2’s and an absolute steal for the 3/2, especially at 1800sf. For comparison check out the condos at 5015 Santa Cruz – in the last year there’s a 1/1 sold for $415,000 and a couple 2/2’s sold at $590,000 and $615,000.
If I’m complaining about anything, it’s that the property wasn’t even offered on the open market, where it very likely could’ve fetched more.
My main focus is on the tenant, or the tenants. What will the rents be after the sale is consummated? Undoubtedly more than they were before. And that’s where the gentrification takes place – especially over time.
If one is lucky enough to live where there is an ocean view….they need to be thankful for the time they had to enjoy it.