Completed · Oceanside, California
806 N Cleveland Street sits just two blocks from the beach in Oceanside, California — one of the most desirable coastal corridors in North County San Diego. When Steele Development acquired the property for $700,000, it was in significant disrepair. The existing structure was dated, poorly maintained, and well below the potential of the underlying land.
But the location was unmistakable. Walking distance to the sand, surrounded by rising property values, and sitting in a zone that could support higher-density development. This was the kind of opportunity that defines the Steele playbook: acquire undervalued coastal assets and execute a clear path to value creation.
Rather than letting the property sit idle during the entitlement and planning process, Steele Development rehabilitated the existing structure and put it to work. The property was listed on Airbnb, generating short-term rental income that offset holding costs and contributed positive cash flow from day one.
This is a hallmark of the Steele approach: never let an asset sit dormant. While architects drew plans and permits moved through the city, the property was earning. The STR income created a financial bridge between acquisition and construction — a strategy that fundamentally changes the risk profile of a development deal.
Simultaneously, the team worked through the entitlement process for a ground-up new construction project. The goal was clear: maximize the site's potential with modern, high-end units that would command premium pricing in a supply-constrained coastal market.
The existing structure was demolished and replaced with three luxury condominium units built from the ground up. The design reflects a modern coastal aesthetic — clean lines, generous natural light, and premium finishes throughout.
The unit mix includes both 2-bedroom/2-bathroom and 4-bedroom/4-bathroom configurations, providing flexibility across buyer and renter profiles. Every unit features rooftop decks with ocean views — a feature that commands significant premiums in coastal Oceanside.
The construction quality reflects the asset's positioning: high-end fixtures, thoughtful floor plans, and architectural details that set these units apart from typical coastal multifamily. This is not commodity housing. These are residences designed for a discerning market that values both location and craftsmanship.
The project is fully completed. The three units are finished, furnished, and operating. The asset is currently valued at approximately $7 million — representing approximately 10x value creation from the original $700,000 acquisition price.
The units are currently operating as short-term rentals, generating ongoing income while Steele Development evaluates long-term positioning. The property is well-suited for continued STR operations, traditional long-term rental, individual condominium sales, or a portfolio hold — providing optionality that few development projects can match.
Short-term rental income has been a consistent theme throughout this project's lifecycle. From the initial rehab of the original structure through the completion of the new build, the property has generated revenue at every stage.
The completed units are positioned as premium coastal vacation rentals — two blocks from the beach, modern design, rooftop decks. This combination commands strong nightly rates in Oceanside's competitive STR market. The operational model provides Steele Development with flexible exit timing, ensuring the asset continues to perform regardless of market conditions.
Cleveland Street demonstrates the full Steele Development thesis in a single project. It begins with identifying an undervalued, distressed asset in a premium location. It moves through STR stabilization to offset holding costs. It culminates in ground-up construction of high-end product that fundamentally revalues the site.
The result is not just a profitable project — it's a proof of concept for the broader strategy. Acquire below replacement cost. Generate income immediately. Entitle and build to the site's highest and best use. Create outsized value through disciplined execution.
Find out what your site could support. Steele Development offers complimentary preliminary feasibility reviews for qualifying properties in Oceanside and coastal North County San Diego.
Request a Property ReviewAll values, projections, and returns described above are approximate and based on internal estimates. Actual outcomes depend on market conditions, construction costs, and other factors. Past project performance does not guarantee future results. This content is for informational purposes only and does not constitute financial, legal, or investment advice.