A huge listing has emerged in the seaside community of Isla Vista, where a Southern California family is asking $78.5 million for 10 student housing properties, including a large apartment building and several smaller ones.
The offering features multifamily assets comprised of several properties ranging in size from two to 42 units, according to Radius Commercial Real Estate. The portfolio of student housing comes with 100 units and more than 370 “projected beds.” The current owner has moved to by-the-bed leasing in several units, and the projected rent per bed is $1,100 a month, according to Radius.
The owner is a family living in Southern California, according to Radius Co-founder Steve Golis. A member of the family attended UC Santa Barbara, Golis told the Business Times.
“The owner has compiled the different assets over many years,” Golis said in an email interview. “The intent is to consolidate the properties into one asset.”
Golis did not name the seller. But in 2020, the Santa Barbara District Attorney’s Office settled a complaint over a lack of on-site management at one of the larger complexes, and identified the owner as a company controlled by UCSB alumnus Brian Moshayedi. His LinkedIn profile identifies Moshayedi as the CEO of BM Capital, based in Santa Monica.
According to Radius, the properties have boasted 100% occupancy under current ownership, and have professional management that selects the tenants.
Isla Vista, an unincorporated community north of Santa Barbara and adjacent to UCSB, is home to thousands of students at UCSB and Santa Barbara City College.
UCSB officials have acknowledged that students face a shortage of housing. In late August, Chancellor Henry Yang said the college has been “negotiating with local hotels to make rooms available to those who cannot find suitable housing elsewhere for fall quarter.”
Deal of the Week
Even though the pandemic put the brakes on some deals, Santa Barbara’s office and industrial property sectors of the commercial real estate market continue to see growth. One recent example is the $13.9 million sale of a multi-tenant office and industrial building a few blocks from State Street and the Funk Zone in downtown Santa Barbara.
Newmark Knight Frank arranged the sale of The Platform, at 126 E. Haley St. and 417 Santa Barbara St. The 33,133-square-foot property is 97% leased to 12 tenants in spaces suitable for office, industrial and retail, according to NKF. The one- and two-story buildings were renovated recently.
NKF Executive Managing Director Sean Fulp, along with Managing Director Mark Schuessler and Managing Director Ryan Plummer, in partnership with [Paul Gamberdella of] Radius Commercial Real Estate, represented the seller, Brian Lezak at Cameron Pacific in conjunction with The Miller Family Companies. Los Angeles-based Beitler Commercial represented the buyer, The Simms/Mann Family Foundation.
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