Normal Heights, tucked between the established San Diego areas of North Park and Kensington, was historically overshadowed by its better-known neighbors. But in recent years, the area has evolved into a popular and eclectic neighborhood, celebrated for its walkability, Craftsman-style bungalows and the vibrant Adams Avenue corridor – a longtime haven for artists, musicians and independent business owners.  In recent years, the neighborhood has attracted young professionals drawn to its unique blend of urban energy, residential charm and central location just five miles from Downtown San Diego and six miles from the Pacific Ocean.

Millennials – now ages 29 to 44 and the largest group of U.S. renters – are increasingly drawn to vibrant, amenitized neighborhoods like Normal Heights that offer cultural appeal at a better value than found in coastal or downtown areas. Nearly 60% of renters in the neighborhood are between 25 and 44 years old and average rents are approximately 25% below comparable coastal neighborhoods. The area features more than 50 bars, cafés and restaurants, five parks and access to several canyon trails – delivering a rich lifestyle experience at a more affordable price point.

In 2021, Pathfinder purchased The Ranch, an 18-unit apartment community in Normal Heights, just two blocks from the shops and cafes on Adams Avenue. The property, built in 1970, offers a mix of one- and two-bedroom apartments ranging from 580 to 770 square feet and all bottom floor units feature private patios. The community has farmhouse-style architecture, an open courtyard, a laundry room and 18 parking spaces.

At the time of acquisition, the property had not been updated in over 50 years, offering an opportunity for improvement. Our business plan included renovating the exterior, modernizing the unit interiors and adding a new community barbeque gathering area. We also planned to add two studio apartments – increasing the unit count from 18 to 20 apartments – by converting a two-car garage and two carports into residential space.