120-26 4th St, Middletown, CA 92014

Perched just one property from the iconic Del Mar coastline, 120-126 4th Street presents a rare opportunity to acquire a premier coastal fourplex in one of Southern California's most sought-after beach communities. Situated on a spacious lot in the heart of Del Mar, this four-unit property offers an exceptional combination of location, lifestyle, and long-term upside. The property consists of three spacious 2-bedroom, 2-bath residences and one 1-bedroom, 1-bath residence. All three 2-bedroom units enjoy ocean views, while the shared courtyard and ocean-view backyard provide inviting outdoor spaces for residents to gather, relax, and enjoy the coastal setting. Offering tremendous value-add potential, this property presents an exceptional opportunity for investors, developers, or owner-users seeking to renovate, reposition, or reimagine a premier Del Mar asset. With its desirable unit mix, oversized lot, ocean views, and irreplaceable location, the possibilities are significant. Residents enjoy an unparalleled walkable lifestyle just moments from the Del Mar cliffs, sandy beaches, Del Mar Village, Del Mar Plaza, boutique shopping, acclaimed restaurants, and numerous world-class surf breaks. Outdoor enthusiasts will appreciate the proximity to Torrey Pines State Natural Reserve, the renowned Torrey Pines Golf Course, and nearby Scripps Health facilities. The world-famous Del Mar Racetrack is also just minutes away. The property offers four covered parking spaces plus five additional off-street parking spaces, an increasingly rare amenity in Del Mar's Village neighborhood. Broker Price Opinion Narrative Property: 120–126 4th Street, Del Mar, CA Opinion of Market Value: $6,000,000 Effective Date: May 27, 2026 The subject property is a four-unit multifamily investment property located in the Del Mar Beach Colony area, one lot from the Pacific Ocean. The property consists of approximately 4,429 square feet of rentable area situated on an approximately 8,100+ square foot lot. Improvements were originally constructed in 1966 and consist of three 2-bedroom/2-bath units and one 1-bedroom/1-bath unit. In developing this Broker Price Opinion, both the Income Capitalization Approach and the Land Residual Technique were considered in order to estimate current market value. Income Capitalization Analysis Based upon current market rental levels for coastal Del Mar multifamily properties with ocean proximity, the subject is estimated to support stabilized gross rental income in the range of approximately $23,000 to $25,000 per month. After deduction for vacancy allowance and operating expenses, the estimated stabilized Net Operating Income is approximately $185,000 to $195,000 annually. Applying a market capitalization rate range of approximately 3.1% to 3.4%, consistent with recent investor expectations for prime coastal Del Mar apartment assets, indicates a value range of approximately $5,700,000 to $6,200,000. Land Residual Analysis The Land Residual Technique was also considered due to the exceptional underlying land value characteristics of the property. The subject’s location, redevelopment potential, coastal zoning characteristics, and scarcity of Beach Colony multifamily parcels contribute significantly to overall value. Current market evidence in Del Mar indicates that a substantial portion of the property’s market value is attributable to the underlying land rather than the existing improvements. Based upon extraction analysis from comparable coastal sales and estimated replacement cost less depreciation of the existing improvements, the estimated contributory land value is approximately $5,000,000, with estimated depreciated improvement value contributing approximately $1,000,000. Conclusion After reconciliation of the Income Capitalization Approach and Land Residual Technique, it is my opinion that the current market value of the subject property, as of the effective date of this report, is: $6,000,000 This opinion reflects the property’s premier coastal Del Mar location, stabilized income potential, and long-term redevelopment and land value characteristics.