Offered at $2,450,000, 1040-42 Redwood Street presents a rare opportunity to acquire a prime development site in the highly desirable Mission Hills neighborhood. The property encompasses approximately 8,749 square feet (0.2 acres) with ideal site dimensions of 87.5 feet by 100 feet, providing both flexibility and scale for a wide range of potential development uses. Currently improved with a duplex—featuring two 2-bedroom, 1-bath units—and a garage, the property generates $5,700 monthly in rental income, offering investors the benefit of cash flow. At the same time, entitlements or redevelopment plans are pursued. Zoned RM-2-5, the site allows for a base residential density of one dwelling unit per 1,500 square feet of lot area and a 1.35x Floor Area Ratio (FAR). However, the property is further enhanced by its inclusion in the Complete Communities Housing Solutions (CCHS) Tier 3 overlay zone, which permits a FAR of up to 6.5x and provides substantial development incentives aimed at encouraging urban infill housing near transit-rich areas. This overlay, combined with FAA clearance for construction up to five stories from grade, sets the stage for a high-density residential or mixed-use project. Additional development work has already been completed, including geotechnical field work, a fault study, and historical review clearance. The property is identified by APN 451-543-05-00 and lies within a tax rate area of 1.22804. Situated in one of San Diego’s most charming and walkable neighborhoods, the site benefits from proximity to Hillcrest, Bankers Hill, and Downtown San Diego, as well as key employment centers, transportation corridors, and neighborhood amenities. With its strong fundamentals, prime location, and extensive entitlement potential, 1040-42 Redwood Street offers an exceptional opportunity for developers and investors looking to deliver much-needed housing in one of the city’s highest-demand markets.