|An historic 6.4k sf retail property in Santa Barbara’s tony Montecito neighborhood recently sold for approximately $16 mil, or roughly $2500/sf.|
Bill Bauman, executive vice president, Kyle Miller, corporate managing director, and Marc Navarro of Studley’s National Retail Services Group represented the seller, 1486 East Valley Road LLC, and buyer, US 3N LLC, an international fund with a domestic operating partner, in the transaction.
“Both parties viewed this transaction as an opportunity to realize value. The seller leveraged the lack of quality product in the market and the compression in cap rates to achieve a premium price, and the buyer recognized the advantage of investing in a truly irreplaceable asset, particularly one with a committed long-term tenant,” said Miller.
This marks the second significant single tenant sale by Studley’s National Retail Services Group in the last six months in Santa Barbara County. In December of 2012, Studley sold the Whole Foods on Upper State Street for over $1200/sf. Additionally, Studley is currently marketing or in escrow on over $45 mil of retail activity in Santa Barbara with another $25 mil coming online in the next 30 days. “Given the coastal nature, exceptional demographics, and high barriers to entry of Santa Barbara, we anticipate strong investor demand will continue to push pricing in this sub-market,” noted Miller.