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Noozhawk: Bizhawk: Winery Shuffle in Santa Barbara’s Funk Zone

August 05, 2021

Commercial real estate firm reports 23 vacancies on downtown State Street, down from 29 in the first quarter of 2021

Santa Barbara, California – Published 8/5/2021
By @Joshua Molina, Noozhawk Staff Writer
Santa Barbara Winery left its tasting room at 202 Anacapa St. and is moving to the former home of Kunin Wines, down the street. Several other tasting rooms are changing locations in the Funk Zone. (Giana Magnoli / Noozhawk photo)

There’s a winery shuffle going on in Santa Barbara’s Funk Zone.

But don’t let it be a buzzkill. The tasting rooms will be back.

The Santa Barbara Winery closed its tasting room on July 28, at 202 Anacapa St.

In addition, the Oreana Winery tasting room closed on July 26, at 205 Anacapa St.

According to Radius Commercial Group, the building at 205 Anacapa St. sold for $4.25 million in the second quarter 2021.

“We would like to thank our customers and employees for over 17 years of business and continued support,” Oreana owners said in a message on the website.

Based on the signage on the wine tasting room doors, Santa Barbara Winery is moving to 28 Anacapa St. where Kunin Wines was. Kunin is moving to 116 E. Yanonali St.

Pali Winery currently occupies the spot, but Pali appears to be headed toward 205 Anacapa St., the former site of Oreana.

BizHawk spoke with Megan Kunin, owner of Kunin Wines, who assured us that the wineries will return.

“They are all opening again in new locations very soon,” Kunin said. “Everyone is moving.”

Jason Harris, Santa Barbara’s economic development manager, said he recently spent some time in the Funk Zone with a buddy who was visiting Santa Barbara. He said the pandemic has not taken the fun out of the Funk Zone.

“The activity was varied,” Harris said. “There were some locales that were really full and popular, and there were some that were more quiet.”

Harris said real estate in the Funk Zone is in transition and that there are businesses vacating and signing new leases.

“It is seems to be somewhat of fluid industry of partnerships being formed,” Harris said. “It’s a very vibrant commercial district.”

Radius Commercial Group reported on Thursday that there were 16 new retail leases signed in the second quarter of 2021.

The most notable deals were the lease of 4,700 square feet for a new martial arts studio at 1107 State Street; Giffin & Crane’s sublease of about 4,387 square feet at 800 North Milpas St.; and Caribbean Coffee’s lease of 2,864 square feet at 220 East Cota St.

In addition, according to Radius, Starbucks leased 1,900 square feet at 3052 De la Vina St., at the intersection with State Street, which previously was occupied by Coffee Bean & Tea Leaf.

Santa Barbara’s retail vacancy rate is about 4.3%, the same as the first quarter of 2021.

On State Street, there are 23 vacant storefronts, down from 29 in the first quarter of 2021. Radius noted that Restoration Hardware’s lease, for a large space at 710 State St., will be up in February.

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