There’s a notice on the defunct Ponto self storage (7290 Ponto Drive, Carlsbad) about an application to build 86 townhome style apartments in the 4.6 acre lot. Half are 3 bd, half are 4 bd, and some will have ocean views. The developer is H.G. Fenton (https://www.hgfenton.com/), and their other recent build-to-rent properties look fairly nice. How would such a development affect property values of existing homes a five-minute walk away (if the new development is not visible from the existing homes)? And would the effect of this development on nearby property values be different if the developer built these identical units to sell, rather than doing a build-to-rent?
I have two detached sfh and a condo in OB and monitor the market carefully. When a huge lux apartment complex opened a mile east on a large former public school site, I feel it caused rent growth to slow down for a year, especially at the high end.
Similarly, the opening of the 28 unit Upper Voltaire townhouse condo project on OB’s eastern fringe I think caused the townhouse market to stall for a year while the units got absorbed. Right now there are zero townhouses on the market in OB, and typically about 15 sell per year. So a two year supply hitting the market at once wasn’t good.
In both cases, the negative effect seems to have been temporary and probably completely gone within another year.
As for density, it is bad if it is right on your block. Otherwise, it depends. More high end housing brings more amenities. Three of the most valuable parts of SD are dense with high end residents: downtown LJ, Coronado, and Little Italy.
Gzz doesn’t understand the market in the area. He thought a house a block off Neptune in Leucadia was walking distance to beach when in reality walking to the beach would require trespassing on someone’s property and jumping off a two hundred foot cliff to get there. A mile east is nothing like two hundred yards from an undeveloped state beach. Take what he said with a grain of salt.
This will have zero impact on property values or the market. It will bring a class of high end rental properties to a beautiful relatively undeveloped portion of the coast. It should be a premium product at a premium price. That many units could take a while to rent out but a well heeled company like that who knows the market won’t rush and will take the time needed. While locals particularly long timers like me don’t love that the beach area is getting more developed from a broader view it should be a net positive
Poster asked about South Carlsbad not OB. Stick to what you know. Zero impact. If anything that Area of Ponto was/is a bit blighted. Cleaning it up and bringing in high end housing is a positive for market
There is no directly competing supply for a product like this. Its an entirely new category of housing in this area and location for which there will be plenty of demand which is why zero impact
.
