185 Saxony Rd · Encinitas, CA 92024

$20,100,000

1440 bd · 1440.0 ba · 7,550 sqft · MultiFamily public records · 48 Days on market

Built 1988

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Why this score? — see what drove the D grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +12.0/30.0
• ARV discount +7.5/15.0
• Schools +7.1/10.0
• Livability +4.0/5.0
• Rent growth +3.8/5.0
• DSCR +3.5/10.0
• 1% rule +2.6/10.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (5+ Unit). Listing-text estimate: 32 units. confirmed

5+ unit building — per-unit beds/baths from public records are typically unavailable; the breakdown below (if shown) is an estimate from the listing text.

Listing remarks

Kidder Mathews is proud to exclusively offer for sale this fully renovated, 32-unit luxury apartment community in the heart of coastal Encinitas. Nestled in one of North San Diego County’s most coveted beachside enclaves—just 0.8 miles from Moonlight State Beach and under 1 mile from Downtown Encinitas’ bustling shops, restaurants, and surf culture— The Gemma delivers an irreplaceable walk-to-everything lifestyle in a market with virtually no new supply. This turn-key trophy asset has undergone a complete 2025 renovation to institutional standards, featuring all-new quartz countertops, fully renovated kitchens and bathrooms, luxury vinyl plank flooring, new AC units,

Key facts

• Fully renovated
• New ac units
• Brand-new roof

Tags

• FULLY RENOVATED
• ALL-NEW QUARTZ COUNTERTOPS
• FULLY RENOVATED KITCHENS
• FULLY RENOVATED BATHROOMS
• NEW AC UNITS
• BRAND-NEW ROOF

Property features AI

Finance

• Other: Building size reported as 18,690 total square feet

Exterior

• Utilities: Lot size reported in acres
• Home design: Residential income property (Commercial-Residential Income subtype)

Interior

• Bathrooms: 45 full bathrooms
• Interior features: 45 full bathrooms

What this means for you Summary

Snapshot

• This is a 32 × 45-bed/45.0-bath units multifamily listed at $20.10M.

Deal economics

• At list price, monthly cash flow is $-5k ($-57k/yr) — negative. Per door: $-150/mo.
• To cash-flow at today's rent, offer at most $19.25M (4.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $15.35M (23.6% below list).
• Recommended offer: $15.35M (23.6% below list) — sets the bar for 1% rule.
• Cap rate 6.0% vs local median 1.6% in Encinitas — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

• Location reads 79/100 on livability (#54 in CA, #2,026 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: health & safety C-, cost of living F.
• San Dieguito Union High (urban): math 72% / reading 79% proficiency, ranked #56 of 1,400 in CA (top 4%) — strong family-tenant draw, lease renewals of 3-5y typical; only 8% free/reduced lunch — higher-income household profile.
• Zoned schools: Capri Elementary (631 students, 25% FRL); Oak Crest Middle (802 students, 24% FRL); Canyon Crest Academy (2,336 students, 11% FRL).
• Market conditions: Rents rising fast (+5.4%/yr); 208 active listings in the ZIP; high-income renter base; 11,759 units permitted in San Diego County in 2024 (7,244 in 5+ unit buildings).
• At $153,469/mo this rent would consume 1162% of the median local household income ($159k/yr) (locally 1537% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $139k of loan paydown is wiped out by about $603k of value loss. Plan a longer hold.
• San Diego County population projected at +20% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 48 days — a 3% lower offer ($19.50M) is reasonable based on typical stale-listing flexibility.
• 10 sale attempts since 3y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $3.45M; list at $20.10M implies a 483% gain — meaningful room to come down on a strong offer.

Recommended offer $15,346,900 (23.6% below list)

Questions for the listing agent

1. What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
2. It's been on market 48 days. Have you received any prior offers? Is the seller open to a 24% concession, seller financing, or rate buy-down credit?
3. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
4. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
7. The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
8. What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
9. What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
10. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 0.76% ✗
• Cap rate: 6.01%
• Cash-on-cash: -1.02%
• DSCR: 0.95
• GRM: 10.9

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 5.39% rent growth · sell at horizon

5-year hold

• IRR: -15.6%
• Equity multiple: 0.43×
• Total profit: $-3,189,878
• Equity at exit: $2,996,975

10-year hold

• IRR: -3.8%
• Equity multiple: 0.72×
• Total profit: $-1,564,924
• Equity at exit: $1,737,881

Cash invested: $5,628,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 18 Strongly Tenant-Friendly
• State California: 18 Strongly Tenant-Friendly · D+13
• County: — inherits STATE
• City: — inherits STATE

AB1482 statewide rent cap (10% + CPI). Cities (SF/LA/Berkeley) layer stricter rules. Just-cause statewide.

Methodology + full state rankings →

ZIP-level market 92024

• Rents YoY: 5.4%
• Active inventory: 208
• Price-to-rent: 349.3×

Monthly cashflow live

• Estimated rent: $153,469 medium
• Mortgage (P&I): −$105,407
• Tax from tax record: −$12,249 /mo · $146,984/yr
• Insurance: −$8,375
• HOA: −$0
• Vacancy / Maint / Mgmt: −$32,228
• Net cashflow: $-4,790

Break-even live

Break-even rent $159,532

Max offer price $19,253,870

Occupancy floor 98%

Sensitivity live

Price	-10% $6,588	-5% $899	+0% $-4,790	+5% $-10,479	+10% $-16,168
Rent	-10% $-16,914	-5% $-10,852	+0% $-4,790	+5% $1,272	+10% $7,334
Rate	-1.0pp $5,333	-0.5pp $322	base $-4,790	+0.5pp $-9,998	+1.0pp $-15,297

32-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 32× units	45	45	$153,472
Total (32 units)			$153,469

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $5,025,000
• Closing costs: $603,000
• Reserves months: —
• Total cash needed: —

Listing history 38 events

1. 2026-06-21
   days on market $20,100,000 Active 48 DOM
2. 2026-06-18
   days on market $20,100,000 Active 45 DOM
3. 2026-06-17
   days on market $20,100,000 Active 44 DOM
4. 2026-06-16
   days on market $20,100,000 Active 43 DOM
5. 2026-06-15
   days on market $20,100,000 Active 42 DOM
6. 2026-06-13
   days on market $20,100,000 Active 40 DOM
7. 2026-06-13
   days on market $20,100,000 Active 39 DOM
8. 2026-06-09
   days on market $20,100,000 Active 36 DOM
9. 2026-06-08
   days on market $20,100,000 Active 35 DOM
10. 2026-06-07
    days on market $20,100,000 Active 34 DOM
11. 2026-06-04
    days on market $20,100,000 Active 31 DOM
12. 2026-06-03
    days on market $20,100,000 Active 30 DOM
13. 2026-06-02
    days on market $20,100,000 Active 29 DOM
14. 2026-06-01
    days on market $20,100,000 Active 28 DOM
15. 2026-05-31
    days on market $20,100,000 Active 27 DOM
16. 2026-05-04
    listed $20,100,000 Active
17. 2025-05-01
    historical $2,950
18. 2025-05-01
    historical $2,950
19. 2025-05-01
    historical $2,950
20. 2025-05-01
    historical $2,950
21. 2025-05-01
    historical $2,950
22. 2025-05-01
    historical $2,950
23. 2025-04-03
    listed $2,950
24. 2025-04-03
    listed $3,050
25. 2025-04-03
    listed $3,750
26. 2025-04-03
    listed $3,050
27. 2025-04-03
    listed $2,900
28. 2025-04-03
    historical $3,850
29. 2025-03-08
    listed $3,850
30. 2025-03-03
    listed $3,850
31. 2025-02-27
    historical $2,995
32. 2025-02-15
    price $2,995
33. 2025-01-28
    price $3,150
34. 2025-01-25
    listed $3,050
35. 2023-11-18
    historical $2,200
36. 2023-11-10
    listed $2,200
37. 2001-11-09
    soldstatus $3,450,000
38. 1986-09-05
    soldstatus $316,000

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast CA · Resets to sale price

• Current annual tax: $146,984 · $12,249/mo
• Projected year-2 tax: $152,760 · $12,730/mo
• Expected delta: +$5,776/yr (+$481/mo · 3.9%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 2/10 Low
• 🌡 Heat 4/10 Moderate 7 d/yr ≥84°F today · 20 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 3/10 Moderate 4 unhealthy d/yr today · 4 by 30 yrs out

Taxation est. · year 1

• Rental income: $1,841,628
• − Mortgage interest: −$1,125,913
• − Property taxes: −$146,984
• − Insurance: −$100,500
• − Repairs & maintenance: −$147,330
• − Management: −$147,330
• − Depreciation: −$584,727
• Taxable loss: −$411,156
• Est. tax savings @ 24.0%: +$98,678
• After-tax cash flow: $41,201/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: San Dieguito Union High
• NCES district ID: 0634380
• Math proficiency: 72% ▬ 0.00%
• Reading proficiency: 79% ▼ -1.00%
• Median HH income: $110,199
• Composite: 70.63/100
• National rank: #519
• State rank: #56 of 1400 in CA

Livability — Encinitas

• Score: 79/100
• State rank: #54
• US rank: #2026

Category grades

Amenities A+ Commute A+ Cost of living F Crime A- Employment A+ Housing C Health & safety C- User ratings A+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Encinitas, CA
• County: San Diego County · 3,178,799 people
• City population: 61,717
• Metro: San Diego-Chula Vista-Carlsbad, CA
• Population (ZIP): 50,617
• Household income: $158,507
• Rent vs Own: 32.6% rent · 67.4% own
• Severe rent burden: 1537.0

Population outlook (San Diego County) Hauer SSP2

• Today (2025): 3,678,185 people
• By 2030: 3,856,546 · +4.8%
• By 2040: 4,171,407 · +13.4%
• By 2050: 4,421,607 · +20.2%
• By 2075: 4,831,599 · +31.4%
• By 2100: 4,832,502 · +31.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (75%)
• Race & ethnicity: White 75% Hispanic / Latino 14% Two or more races 11% Asian 5%
• Hispanic origin (detail): Mexican 10%
• Common ancestry: Italian 4% Romanian 3% Slovak 3%
• Foreign-born: 12% · Canada, China
• Languages at home: 84% English-only · Spanish 9% Other Indo-European 2% German/W. Germanic 1%

Political lean MEDSL · San Diego

• 2024 margin: D (+16.8) · D 56.9% · R 40.1% · Other 2.9%
• 2008→2024 swing: +6.6pp toward D · 2008: 10.2pp · 2024: 16.8pp
• All cycles: 2024: D+16.8 2020: D+22.8 2016: D+17.8 2012: D+5.1 2008: D+10.2

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -881.14%
• Current HPI: 461.5044
• Rent YoY: ▲ 5.39%
• Metro: San Diego-Chula Vista-Carlsbad, CA
• State GDP YoY: ▲ 3.21%
• F500 in state: 116

Industry mix (Fortune 500 HQ in CA)

Industry	F500 HQs	Revenue
▸Technology	27	$1,492B
▸Financial Services	3	$174B
▸Retail	3	$44B
▸Insurance	3	$26B
▸Media / Entertainment	2	$115B
▸Pharmaceuticals / Biotech	2	$62B

Price history

+6260.8% since first listed

23 events — show timeline

• 2026-05-04 Listed $20,100,000 SDMLS
• 2025-05-01 Rental Removed $2,950 RENT.
• 2025-05-01 Rental Removed $2,950 RENT.
• 2025-05-01 Rental Removed $2,950 RENT.
• 2025-05-01 Rental Removed $2,950 RENT.
• 2025-05-01 Rental Removed $2,950 RENT.
• 2025-05-01 Rental Removed $2,950 RENT.
• 2025-04-03 Listed for Rent $2,950 RENT.
• 2025-04-03 Listed for Rent $3,050 RENT.
• 2025-04-03 Listed for Rent $3,750 RENT.
• 2025-04-03 Listed for Rent $3,050 RENT.
• 2025-04-03 Listed for Rent $2,900 RENT.
• 2025-04-03 Rental Removed $3,850 RENT.
• 2025-03-08 Listed for Rent $3,850 RENT.
• 2025-03-03 Listed for Rent $3,850 RENT.
• 2025-02-27 Rental Removed $2,995 RENT.
• 2025-02-15 Price Changed $2,995 RENT.
• 2025-01-28 Price Changed $3,150 RENT.
• 2025-01-25 Listed for Rent $3,050 RENT.
• 2023-11-18 Rental Removed $2,200 APPFOLIO
• 2023-11-10 Listed for Rent $2,200 APPFOLIO
• 2001-11-09 Sold (Public Records) $3,450,000 Public Records
• 1986-09-05 Sold (Public Records) $316,000 Public Records

Property tax history

+6.9%/yr

Latest (2025): $146,984 · +143.8% YoY. Source: county tax records.