Marcus & Millichap has completed the disposition of an 81-unit affordable seniors housing community located at 5035-49 Guava Ave. in La Mesa. The age-restricted multifamily asset, built in 1986, changed hands for $12.5 million, which equates to $154,320 per unit.
The property serves low-income seniors and is described as a well-maintained, deed-restricted community. According to the marketing team, it is the only senior deed-restricted building in its submarket with an affordability agreement in perpetuity, positioning it as a unique asset within the local rental landscape. New ownership is expected to continue operating the community as affordable housing for seniors under the existing long-term restrictions.
Christopher Zorbas, executive managing director investments with Marcus & Millichap, noted that age-restricted communities with long-term affordability protections seldom come to market in San Diego County. He indicated that such properties are rarely available for acquisition, underscoring the limited supply of similar opportunities for investors targeting affordable senior housing in the region.
Graeme Henderson, director of investments with Marcus & Millichap, commented that the transaction demonstrates ongoing demand for well-maintained affordable senior housing despite broader headwinds in the seniors housing industry. He added that the firm remains confident in the long-term fundamentals of both the La Mesa rental market and the greater San Diego area, highlighting investor interest in stable, income-producing assets with strong demand drivers.
Zorbas, Henderson, and Austin Huffman, investment specialists in Marcus & Millichap’s San Diego Del Mar office, led the marketing effort. The team represented the seller, a private owner, and also secured the buyer, Positive Investments, which is based in Los Angeles. Their campaign generated more than 20 property tours and attracted multiple competing offers, indicating a competitive bidding environment for the asset.
The sale is notable within the local seniors housing and affordable housing sectors. It is one of only five transactions involving properties over 80 units in La Mesa during the past five years. At the county level, it represents one of just seven senior affordable housing transactions over that same period in San Diego County. This limited number of trades highlights how infrequently sizable, deed-restricted senior communities change ownership in the area.
For investors, the combination of long-term affordability protections, a stable occupancy profile typical of seniors housing, and constrained supply of comparable assets in San Diego County appears to be supporting continued interest in this niche. The Guava Avenue transaction illustrates how competitively marketed, institutionally brokered deals in the affordable seniors segment can still draw strong buyer interest, even as the broader seniors housing industry contends with operational and macroeconomic challenges.
