601 State St
Santa Barbara, CA 93101
Retail Property For Sale

PRIME STREETFRONT RETAIL OPPORTUNITY IN DOWNTOWN SANTA BARBARA
Downtown Santa Barbara Retail Opportunity - Outstanding opportunity to purchase 4,653 SF streetfront retail property situated along State Street in the heart of Downtown Santa Barbara, with a fantastic corner suite location
• The property is occupied by The House of Clues Escape Room which is currently on a short-term lease and is paying rent significantly below market rates ($13,000/mo), providing a purchaser maximum flexibility
• The House of Clues signed a 3-year renewal in August 2024. During year 3, either party has the right to terminate the lease with 90 days written notice
Opportunity to Control Your Own Destiny - Given the current short-term tenancy, the property can be purchased by an Investor interested in re-tenanting the space or an Owner/User with the intent to occupy the space
• Investor – Capitalize on the irreplaceable corner State Street location by re-tenanting the property with one or several tenants, in an extremely desirable trade area where purchase opportunities are few and far between
• Owner/User – Own versus lease in Downtown Santa Barbara – take advantage of attractive SBA financing, the after-tax benefits of ownership, and equity appreciation
Pride of Ownership Asset - "Trophy" investment asset with strong visibility along State St, THE primary street in Downtown Santa Barbara, surrounded by other tenants and demand drivers that include Apple, Marshall's, Urban Outfitters, Lululemon, H&M and World Market along with other local favorite and unique dining, shopping, boutique, and salon destinations
Vibrant Tourist Destination - Located just 85 miles north of Los Angeles, Santa Barbara’s Mediterranean climate, plentiful beaches, mountain views and cultural offerings attract more than 7.2 million visitors annually, bringing in an estimated $1.9 Billion into the local economy each year
STRONG REAL ESTATE FUNDAMENTALS AND INTRINSIC VALUE
High Barriers to Entry – Santa Barbara is a mature, supply constrained trade area with virtually no land available for future development, creating high barriers to entry and ensuring the property’s long-term success
Unrivaled Corner Suite Location – The property is perfectly positioned at the corner of State Street and W Cota Street, with great exposure from both, providing maximum site flexibility and traffic
Residential Value-Add Potential – Opportunity to add value by building 2nd and 3rd floor apartments through the City of Santa Barbara AUD Program, which aims to promote housing development by allowing for increased densities and development standard incentives in certain areas
INFILL, AFFLUENT COASTAL CALIFORNIA DEMOGRAPHICS
• More than 23,150 people in a 1-mile radius with Average Household Incomes exceeding $115,300
• More than 84,500 people in a 3-mile radius with Average Household Incomes exceeding $163,850
• More than 107,450 people in a 5-mile radius with Average Household Incomes exceeding $168,800
EXCELLENT 1031 EXCHANGE UP-LEG OR ADDITION TO PORTFOLIO
• Debt Free Acquisition – The property will be delivered free and clear of any existing debt, allowing an investor to pay all-cash or obtain new financing
• Ideal 1031 Exchange Up-leg – The combination of i) an irreplaceable corner location along State Street and ii) flexibility to lease out or occupy the property make 601 State St a superb 1031 Exchange opportunity for an investor seeking a longer-term hold