Santa Barbara News-Press: Sale of retail center sets record at $14.5 million
Santa Barbara, California – Published 4/8/2014, Santa Barbara News-Press
By Steve Sinovic, News-Press Staff Writer
A high-visibility retail center on Coast Village Road anchored by Starbucks has been sold to a Santa Barbara couple for $14.5 million.
The transaction, announced Monday in a news release from Radius [Commercial] Real Estate & Investments, is the largest-ever commercial property sale on Coast Village Road, according to the Radius agents who handled the off-market deal for both the buyers and seller.
The new owners are Deborah and James Longo, who also recently purchased a second home in Montecito, according to Radius.
Radius declined to name the seller.
Located at 1046 Coast Village Road, the 13,800-square-foot building includes tenants Starbucks, Vons Pharmacy, Blenders in the Grass and Sakana Sushi Bar and Japanese restaurant, all of which hold long-term leases.
“Competition is fierce for well-located inventory in Santa Barbara, which is simply hard to come by right now,” said Radius broker Steve Brown.
Buyers from across the country – even first-time investors like the Longos who may not be traditional commercial purchasers – have their eyes on Santa Barbara, he said.
“You simply cannot ignore the long-term value of commercial property” as an investment, Mr. Brown added.
The new owners plan to invest in additional upgrades to the building. The Starbucks coffee chain also recently completed a $350,000 renovation to its space.
“This is a first-class property in a tremendous location,” Ms. Longo said in a prepared statement.
She said she had specific requirements in her search, targeting a prime piece of real estate either on State Street or Coast Village Road, preferably a boutique retail center with ample parking and visibility.
“I’m excited about enhancing and bringing even more value to the property to make it one of the true gems of Montecito,” said Ms. Longo.
Radius agents have been active of late, taking part in sales of high-profile Santa Barbara properties, including the Marshalls building on State Street and the former Bekins building in the Funk Zone, now leased by sound-system maker Sonos.
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