Investment Overview

Marcus & Millichap is pleased to present 128-130 W E St & 571-577 2nd St, a 6,508 square-foot retail and office building with six suites two blocks from the Pacific, in one of North County’s most fiercely held submarkets. Encinitas doesn’t build much new product. What exists here has been held, passed down, and quietly kept off the market for decades. Second & E St sits in the heart of downtown, walking distance to the coast, the restaurants, and the foot traffic that defines this stretch of the 101 corridor. The trade area carries a $166K median household income, roughly 50% above the San Diego County median, and the supply pipeline is essentially nonexistent. Five of the six suites are occupied, with only 35% of the RBA leased beyond three years, offering an investor or owner-user the flexibility put their vision into action in the very near future. A user can plant their business in a tightly held coastal sub-market, or an investor can reset rents to market and stabilize an asset in a submarket with phenomenal fundamentals. Several major capital items are already behind you. Earthquake retrofitting has been completed, the sewer lines have been replaced, the electrical feeders have been upgraded to copper, and a new roof is scheduled for this year. The leases are short-term, the rents are below market, and Encinitas has historically and consistently outperformed surrounding sub-markets, so the path to stabilization is well-defined. Encinitas real estate at this scale trades once in a generation. The building is well-maintained, the leases are flexible, and Encinitas fundamentals do the rest.