Pacific Coast Business Times: CRE: 19-unit apartment complex in Goleta nets $5.4M

A 19-unit apartment complex in Old Town Goleta sold for $5.4 million, or $284,211 per unit, marking the first five-unit-plus sale in Goleta since 2023, according to Radius Commercial Real Estate, which brokered the deal.

The property went into escrow in under two weeks and closed at a 4.65% current cap rate.

The apartment community, owned by 23 Magnolia Ave LLC, had remained in the same family for generations and features a unit mix of (17) 1-bedroom/1-bath units and (2) 3-bedroom/1-bath units, along with approximately 11 uncovered parking spaces, 8 covered spaces, shared street parking, garage storage with ADU potential, and additional ADU potential in the carports, according to the press release.

“Old Town Goleta continues to attract investors who understand the long-term trajectory of the area,” said Steve Golis, founder and principal of Radius Commercial Real Estate.

“Properties like 23 Magnolia rarely trade, particularly when they’ve been held by the same family for generations. The combination of stable occupancy, strong workforce housing demand, and the ability to enhance value through renovations and potential ADU additions made this a compelling opportunity for the buyer. In addition, many owners are recognizing the relative strength of Goleta compared to neighboring Santa Barbara, where regulations have been more restrictive. Goleta’s ability to approve and build new housing more efficiently has supported long-term value growth, even as demand for housing in the region continues to outpace supply.”

The sale follows Team Golis’ recent closing of the Franciscan Inn & Suites at 109 Bath Street in Santa Barbara, a 53- key hotel that sold for $22.5 million, further reflecting the team’s continued activity across high-value Central Coast assets.