for sale 35 w haley st, santa barbara, ca | corner office/retail … · 2017-04-12 · gross...

222 E. Carrillo Street, Suite 101, Santa Barbara, California 93101 | HayesCommercial.com

The information contained herein has been obtained from the owner of the property or from other sources deemed reliable. We have no reason to doubt its accuracy, but we do not guarantee i t. 4/7/17

Francois [email protected]. 01144570

Steve [email protected]. 00827640

Experience. Integrity. Trust.Since 1993

FOR SALE 35 W Haley St, Santa Barbara, CA | Corner Office/Retail Building | 8,596 SF

Price: $4,900,000

Price per SF: $570

Building Size: 8,596 SF, including permitted, finished basement

Parcel Size: 3,049 SF

APN: 037-211-028

Zoning: C-2

Occupancy: Vacant

Year Built: 1926; rebuilt and retrofit in 2001; remodeled in 2010

HVAC: Roof units, 25 tons, adjustable on each floor

Restrooms: Five

Elevator: No

Parking: Public lots nearby; existing owner has rented 12 spaces adjacent to the building

CSO%: 2.5%

To Show: Call listing agents

Property Overview

This two-story building with finished basement offers mountain views from a fantastic corner location within a block of State Street. Remodeled in 2010 by Alchemy Arts Center with exposed 16’ ceilings, dramatic arches, and exotic touches to create an open, refined property. Located on the corner of Chapala Street, an established corridor for creative office, professional services, hospitality, and wellness/fitness uses.





222 E. Carrillo Street, Suite 101, Santa Barbara, California 93101 | HayesCommercial.com 2

35 W Haley St, Santa Barbara, CA | Corner Office/Retail Building | 8,596 SFFOR SALE

Remodel details include: Exposed ceiling on second floor, HVAC roof units, ADA restrooms, spa tub and shower, lighting, windows, flooring, arched openings, french doors, alarm & music system, carved teak partitions, and mosaic fountain in entryway.







FIRST FLOOR SECOND FLOOR

W HALEY ST Not to scale.







BASEMENT

W HALEY ST Scale and position of parcel map overlay are approximate.Not to scale.







Subject

Aerial view looking East

The Funk Zone

Subject

Aerial view looking north

Paseo Nuevo Mall

Area Information

Santa BarbaraSanta Barbara combines the art and culture of a big city with the heart and hospitality of a small coastal town.

Location. The city is 90 miles north of Los Angeles and 330 miles south of San Francisco and is served by the Santa Barbara Airport and Amtrak. Tucked between the Santa Ynez Mountains and the Pacific Ocean, Santa Barbara enjoys a mild, Mediterranean climate averaging 300 sunny days a year. Santa Barbara’s beaches, parks and mountains provide a playground for a wide array of activities enjoyed by residents and visitors alike.

Economy. Renowned internationally for its fine restaurants, shopping, hotels and architecture, the tourism industry is the region’s main economic driver. In addition, the city economy includes a large service sector, educa-tion, technology, health care, finance, agriculture, manufacturing and local government. Education in particular is well-represented with several world-class higher learning institutions including the University of Califor-nia, Santa Barbara (21,100 students), Santa Barbara City College (12,000 students), Westmont College (1,200 students), and Antioch University.

Culture. The city’s history is evident in its Spanish architecture, emanating from the majestic Mission Santa Barbara. The downtown is brimming with restaurants, theaters, museums and hosts an international film festival. Wine lovers can sample the Urban Wine Trail downtown or take a short drive to the world-class vineyards of Santa Ynez Valley.







The commercial real estate market in the Santa Barbara area (known locally as the South Coast) is marked by low turnover, limited development and high barriers to entry. Because of the growth constraints, the area enjoys below-average vacancy rates and stable rental income.

High Barriers to Entry

Due to geographic constraints and a stringent government approval process, development in the market is very limited. There has been a total of approximately 270,000 SF of new office space delivered in the past 10 years, and there are currently only two sites approved for office development in the Santa Barbara area.

Institutional Ownership

Despite the modest size of the market, the appeal of the “American Riviera” and the area’s dynamic tech/engineering sector have attracted a number of well-known tenants, which in turn has brought real estate investment to the area by institutional owners, including: Macerich, Sares Regis, AEW, East Group Properties, JP Morgan, and Regency.

Office Property

The market contains approximately 10.2 million square feet of office property concentrated in three areas: downtown Santa Barbara, the

Hollister Avenue corridor in Goleta, and along US 101 at the eastern end of Carpinteria.

Office Sales

Sales of office property reached sustained and unprecedented activity during the three-year period from 2013 to 2015 with 109 transactions completed, totaling $433 million. Market velocity held steady in 2016, posting 28 office sales. Investor and owner-user demand for assets in good locations remains strong.

Office Leasing

Office leasing on the South Coast was very active in 2016 with 159 transactions – a 36% increase compared to the prior 5-year average – and gross absorption of 764,000 SF, which was slightly lower than 2015.

Santa Barbara’s office vacancy has been stable and low – below the 5% threshold – for more than three years. Lower vacancy has led to increased pricing as both asking and achieved rates have increased 12% since the beginning of 2014. The relatively limited inventory has not slowed activity; 110 leases were signed in 2016.

A portion of recent Santa Barbara real estate activity has been focused around the creative corridor of Chapala Street, found on the next page.

MARKET OVERVIEW







for sale 35 w haley st, santa barbara, ca | corner office/retail … · 2017-04-12 · gross...

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