1009-1011 Pacific Ave 19,500 SF 100% Leased Retail Building Santa Cruz, CA 95060 $6,271,401 CAD ($321.61 CAD/SF) 5.71% Cap Rate

The Catalyst is a Santa Cruz legend, established by Randall Kane, the iconic local nightclub owner, who purchased the Catalyst in Santa Cruz in 1969, and moved it to its current location in 1976. The Catalyst is a world renowned live music venue that has featured countless famous acts over the years. Mr. Kane sold the business in 2003, and passed away in 2009. His family still owns the property. The current tenant/venue operator has a lease in place through mid 2028 with no further options to extend. Perhaps the eventual buyer may choose to continue with the current use as an investor, establishing a new lease with the current tenant. Or, the property might be re-purposed for a different use such as grocery, retail, or some other commercial use allowable via the Central Business District (CBD) zoning. Perhaps the new Buyer will decide to take over the venue (once the current lease expires) and operate the nightclub themselves. And of course, the property is well situated to be re-purposed as a mixed-use development featuring new commercial and residential units. In addition, a Buyer may choose to also purchase 1013 Pacific Avenue, a contiguous 5,314± SF parcel (with old structures). Contact Listing Agent to learn more about 1013 Pacific Avenue.
The 19,500± SF Catalyst building was originally constructed in 1938 as a bowling alley. Later, the bowling alley was converted to an entertainment venue. The most recent interior renovation was done about 35 years ago. The 9,080± front portion of the building’s first floor contains the lobby entrance/ ticketing area, a commercial kitchen, the Atrium performance area, and a large cocktail bar which serves both the Atrium and the main performance area, and restrooms. The main entertainment stage, main floor, and backstage section are located in the rear section of the building consisting of 6,719± SF. The upper floors feature balconies on either side of the main floor for seating overlooking the floor and stage below, another cocktail bar, an entertainment area with pool tables, the manager’s office, a balcony area for sound and lighting controls, and a “green room” for performers. The upper floor is 3,701± SF approximate. Overall, the total leased area is approximately 19,500 square feet.
Downtown Santa Cruz is enjoying a significant transition as over 1,400 new housing units are in the process of being built and leased in the Central Business District (CBD). Santa Cruz is widely known as a destination tourist attraction, and benefits from the nearby UCSC student population & Silicon Valley residents, as well as international travelers visiting the California Coast. There are thousands of new residents moving to downtown Santa Cruz. Business downtown is also growing. Amazon rents 40,000 SF of office space at the famous Cooper House on Pacific Avenue, across the street from the Rittenhouse Building which is home to Looker, now owned by Google. Kaiser Permanente recently opened a 20K SF medical office building downtown. Across the street from the Catalyst there are new affordable apartments under construction. Further down the block, there are more new apartments available for lease, including Anton Pacific, a 207 unit new market rate apartment complex. On Front Street, a new 200+room hotel is slated to be built, Lincoln Properties is building 175 new apartments, and Swenson plans to build a 270+ apartment unit building at Front and Soquel Avenues. There are several national retailers in proximity, including URBN, Trader Joes, Verizon, the Gap, and many more. Anthropologie just signed a 10 year lease at nearby 1134 Pacific Avenue.