A mixed-use property has hit the market in Santa Barbara. According to the listing by Lee & Associates, the 11,451 square-foot building is for sale with an asking price of $10.5 million, or approximately $916 per square foot.
Located at 3890 La Cumbre Plaza, the three-story Class A building was built in 1976. Last acquired in January of 2021, property records show that the building is currently owned by Reichard Bros. Enterprises, which also occupies a space in the building.
According to the offering memorandum, Reichard Bros.’ lease is set to expire at the end of 2022, with an option to extend. The building has two other tenants as well, including Habit Restaurants, a subsidiary of YUM! Brands and H&R Block.
With the current tenants, the property offers a net operating income of $376,903. However, all leases include 2 to 3 percent annual rent increases as well as lease extension options. Filling a 1,820 square-foot ground floor level space in the building could also potentially provide added income.
The building is located just off Interstate 101, and is adjacent to two major shopping centers, the La Cumbre Plaza mall and the Five Points Shopping Center. The two properties offer a variety of retail amenities, including Target, Macy’s, Bristol Farms, Ross, CVS, Petco and Starbucks, among others.
The area also benefits from its demographics, with a large population of nearly 135,000 people in a five-mile radius of the property. Additionally, the average household income within a five-mile radius averages $92,530 per year. The surrounding county also is home to a population of 444,769 with an estimated 7.2 million visitors per year.
“Santa Barbara is both small and vibrant. Locals and visitors alike are drawn to the city’s charming downtown and picturesque State Street with its rich Spanish architecture and historical sites, and wide variety of shops and galleries, numerous Zagat-rated restaurants, thriving open-air shopping centres like the famed Paseo Nuevo, pristine, sunny beaches and harbour, and countless other outdoor attractions including the Santa Barbara Zoo, Santa Barbara Mission, Stearns Wharf and Ty Warner Sea Center, to name just a few,” the offering memorandum states.
