North and Central Ocean Beach

North and Central OB is the Ocean Beach most people picture: Newport Avenue, the pier, the beach, and the coffee shops, taco spots, and surf shops in between. It's the densest, most walkable part of OB, and it's where the neighborhood's character is strongest.

For multifamily, this is OB's core rental market. Tenants pay for walkability and being steps from the beach, which keeps demand steady. It sees the most transaction volume of any OB submarket, and it typically trades at the lowest average cap rates, a reflection of how reliably these buildings hold value. Building sizes range widely, from beach-style duplexes and fourplexes to larger apartment buildings, many with that classic OB beach-cottage character.

One thing owners should know: North and Central OB falls under the Ocean Beach Community Plan, and most of it is zoned RM-2-4, which allows about one unit per 1,750 square feet of lot and a 1.2 FAR. The zone's base height limit is 40 feet, but the coastal 30-foot height limit applies here. Many older buildings have more units than current zoning would allow on a rebuild, which makes existing properties hard to replicate and is a big part of why well-located buildings hold their value. Tanner can walk you through what that means for your building.