Ideally situated on one of the most coveted blocks in lower Eastside Costa Mesa, 332 Walnut Street presents a truly rare opportunity. Lovingly owned and cared for by the same family for decades, the property offers exceptional flexibility with a permitted addition that creates a separate living space while preserving the ability to reconnect the spaces into one cohesive residence. The main home features two bedrooms and two bathrooms, along with a spacious second living area currently configured as an additional one-bedroom, one-bathroom suite. Upon entering, you are immediately greeted by a wonderful sense of space and volume, highlighted by vaulted ceilings and abundant natural light in the great room. The adjacent open kitchen offers ample counter space, counter seating, and a butcher-block surface ideal for food preparation. A formal dining area, complete with an inviting brick fireplace, provides a warm setting for entertaining and everyday living. Off the great room, a hallway leads to a full bathroom, a generously sized secondary bedroom with views of the front courtyard, and the primary bedroom with its en-suite bathroom. Accessible from the front courtyard through its own private entrance, the additional living space offers a similar great-room layout with an adjacent