Three-story 7,704 SF architecturally distinct office building on one of the most sought after blocks in downtown Santa Barbara
PROPERTY SUMMARY Rare owner-user or value-add opportunity in downtown Santa Barbara s central business district. Located near restaurants, the Santa Barbara County Courthouse, and State Street on one of the most sought after blocks in downtown Santa Barbara. Surrounding tenants include UBS, Wells Fargo Advisors, and Morgan Stanley Smith Barney. This freestanding office features ample on-site parking and views of the Riviera and courthouse. PRICE: Address: $4,100,000 ($532 PSF) 225 E Carrillo St, Santa Barbara APN: 029-212-013 Size: Floor Size Occupancy First Lobby/Elev N/A Second 3,742 RSF 23% occupied Third 3,962 RSF 87% occupied Total 7,704 RSF 53% occupied Site area: Elevator: 6,534 SF (0.15 acres) Yes, serves all three floors Year built: 1974, improved in 2016-2017 HVAC: Throughout. Ducting replaced in 2014. Restrooms: Sprinklers: Two sets total (a set on second and third floor) None Zoning: C-2 Parking: Construction: 17 spaces on-site, including 7 covered spaces Steel, wood frame and stucco CSO: 2%
FLOOR PLANS Vacant SECOND FLOOR THIRD FLOOR Roger Lytel Law Howard Hudson, CPA SUITE 301 1,157 SF Robertson International Travel Chiropractor Umbra Lab CARRILLO ST SUITE 201 940 SF ELEVATOR SUITE 202 1,953 SF CARRILLO ST ELEVATOR RR RR RR RR SUITE 302 1,105 SF Note: The ground floor consists of 17 parking spaces, a lobby, storage, stairs, and elevator to the other floors. SUITE 304 256 SF SUITE 305 723 SF SUITE 203 849 SF SUITE 303 721 SF
PHOTOS
7 COMPARABLE SALES 5 4 SITE 3 2 1 9 8 6 Address Deal Date Price Bldg SF Bldg PPSF Cap Rate Parking Ratio Land SF 1 928 Garden St 5/17/16 $1,200,000 2,024 $593 3.5% 2.0 3,560 2 314 E Carrillo St 12/7/16 $1,944,500 3,444 $565 4.5% 3.5 10,018 3 311 E Carrillo St 7/1/16 $2,300,000 4,126 $557 4.7% 2.1 3,920 4 27 E Victoria St 5/17/16 $2,400,000 4,400 $545 3.5% 0.0 5,227 5 32-34 E Sola St 12/9/16 $2,900,000 4,100 $707 5.1% 3.6 5,227 6 600 Chapala St 11/18/16 $3,126,100 6,619 $472 4.8% 0.6 9,148 7 1532 Anacapa St 8/9/16 $3,250,000 6,146 $529 3.8% 2.4 11,931 8 525 Anacapa St 10/28/16 $5,300,000 10,723 $494 Owner-user 3.0 6,497 9 222 E Canon Perdido St 3/23/17 $5,306,700 14,368 $369 Vacant 2.9 27,443 Average 6,217 $537 4.3% 2.2 9,219 Subject Property Asking Price Bldg SF Bldg PPSF Cap Rate Parking Ratio Land SF 225 E Carrillo St $4,100,000 7,704 $532 CLA 2.2 6,534
SANTA BARBARA OFFICE MARKET OFFICE SALES 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. Dollar Volume (M) 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 threeyear period from 2013 to 2015 with 109 transactions completed, totaling $433 million. Market velocity held steady in 2016 and picked up noticably in the first half of 2017 with 19 office sales totaling $108 million. Investor and owner-user demand for assets in good locations remains strong. OFFICE VACANCY 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. In 2017, after a relatively subdued first quarter, office leasing roared back to life in the second, producing one of the most active quarters on record for the South Coast. Vacancy Rate Santa Barbara s office vacancy rate has been stable for nearly four years, hovering around the 5% threshold. The relatively limited inventory has not slowed activity; 110 leases were signed in 2016, and the second quarter of 2017 yielded the highest volume of square footage leased since Q1 2015. Achieved rents have increased 4% since 2014, not quite keeping pace with inflation, while asking rates increased 6.3% in the same period.
AREA OVERVIEW Post Office Paseo Nuevo Lobero Theatre County Courthouse Granada Theatre Arlington Theatre SITE
THE NEIGHBORHOOD The subject property is situated among some of Santa Barbara s most prestigious buildings in a zone dense with high-quality tenants. THE BUSINESS DISTRICT With East Carrillo Street as its central artery, the area that Santa Barbara locals refer to as the business district is the downtown location of choice for businesses in the banking and financial services sector as well as law firms and commercial real estate brokerages. Proximity to both State Street s amenities and county and city government buildings contributes to the appeal. The neighborhood is also home to historical sites, gardens and courtyards that punctuate the beautifully finished office buildings. DOWNTOWN With 35,000 tourists on average in the city every day, the downtown area is a thriving commercial hub far more cosmopolitan than Santa Barbara s population count would suggest. Business, shopping, arts, dining and leisure all intersect downtown, with sandy beaches at its doorstep and a backdrop of rugged coastal mountains. The subject property is within three blocks of State Street and walking distance to virtually all downtown amenities, which provides a lifestyle benefit to tenants.
SANTA BARBARA 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. 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. 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, education, 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 California, Santa Barbara (21,100 students), Santa Barbara City College (12,000 students), Westmont College (1,200 students), and Antioch University. Santa Barbara Area Principal Employers 1. UCSB 10,400 Employees 2. Santa Barbara County 4,600 Employees 3. Cottage Health System 2,600 Employees 4. Santa Barbara City College 2,050 Employees 5. Santa Barbara School District 2,000 Employees 6. City of Santa Barbara 1,700 Employees 7. Raytheon 1,300 Employees 8. Samsum Clinic 1,040 Employees 9. US Postal Service 800 Employees 10. LogMeIn/Citrix Online 650 Employees 11. Bacara Resorts 650 Employees 12. Yardi Systems 600 Employees 13. Jordano s 575 Employees 14. Goleta Union School District 530 Employees 15. Procore Technologies 550 Employees 16. Deckers 475 Employees Tech 13% Professional Services 17% Communications 6% Other 9% Real Estate 9% Legal 9% Finance & Insurance 13% Medical 14% Government 7% Education & Non-Profit 3% DOWNTOWN Downtown Santa Barbara hosts a balanced spectrum of office uses, and the area s business professionals create rich demand for space. The subject property benefits from a diverse mix of tenants, which mitigates risk. Number 4 on Livability s 2016 Best Places To Live Low unemployment rate at 3.2% compared to 4.3% nationally Area tourism brings 6.1 million visitors annually Art and culture of a big city, heart of a small coastal town