Three high-profile assets located in downtown Santa Barbara have been sold by Studley’s National Retail Services Group for a combined total of $20 million. The undisclosed seller of the three properties acquired 131 and 528 Anacapa approximately two years ago and 111 State Street three years ago, and implemented distinct, dynamic revitalization plans for each asset.
The Anacapa Project, located at 131 Anacapa Street, is 16,700 square feet of refurbished commercial space located in the Funk Zone, a unique arts, business, and industrial district along Santa Barbara’s waterfront and incorporating the popular Urban Wine Trail. Originally built in 1912 and the former home of the Bay Café and the Santa Barbara Fish Market, the repurposed property now houses nine new businesses. Anchor tenant, The Lark, is a 130-seat restaurant named for the sleek overnight Pullman train of the Southern Pacific Railroad that serviced Santa Barbara from 1910 -1968.
528 Anacapa Street, one block from the vibrant State Street shopping district, is an approximately 3,360-square-foot, single-tenant building that houses the French Press coffee shop and onsite roasting facilities. The property also includes entitlements to develop an additional 3,200 square feet of retail space.
111 State Street is a vacant 7,100-square-foot building known to locals as the old BeBop Burger location. The property includes ample onsite parking, a highly desirable commodity in Santa Barbara, and is well positioned to take advantage of the redevelopment and new development unfolding in the Funk Zone and lower State Street Waterfront District. The buyer, who plans to completely rehab the building, owns and operates several successful restaurants in Santa Barbara County.
Bill Bauman, executive vice president, Kyle Miller, corporate managing director, and Marc Navarro of Studley’s National Retail Services Group represented the seller of the properties and the buyer of 131 Anacapa, Westside Properties 1, LLC.Katie and David Hay of Central Coast Real Estate represented the buyer of 528 Anacapa. The Hays also handled the leasing and management of 131 and 528 Anacapa and continue to manage The Anacapa Project.
Steve Leider and Clarice Clark of Lee and Associates represented the buyer of 111 State Street.
“The properties are unique, irreplaceable assets in highly desirable urban submarkets,” said Miller. “The seller saw the opportunity to leverage the high barriers of entry to Santa Barbara and demand for quality assets to achieve very good pricing. The buyers seized the opportunity to acquire exceptional real estate with significant potential, and preserve wealth in a market that is very difficult to penetrate.”
Earlier this year, Studley’s National Retail Services Group represented the same seller in the disposition of the single-tenant Union Bank in Montecito for $16 million or a record breaking $2,500 per square foot. In the last 12 months, the group has transacted five sales in Santa Barbara for a combined total of $71.3 million, and is currently marketing four more projects with a combined value of $57 million.
“Given the coastal nature, exceptional demographics, and select acquisition opportunities of Santa Barbara, we anticipate strong investor demand will continue to push pricing in this sub-market,” noted Bauman.