At the midpoint of 2018, South Coast sales activity has slowed compared to prior years. Both the number of commercial transactions and dollar volume (excluding hotels) have decreased nearly 30% compared to the prior 5-year averages. Transaction momentum did pick up in the second quarter, suggesting that the activity during the first quarter was indeed diminished by the Thomas Fire and Montecito mudslide. Additionally, properties currently under contract have the potential to produce a substantial bump in volume in the second half of the year. Santa Barbara has been the focus of most of the action to date. Two medical properties sold in the second quarter, including the 18,200 sf building at 3045 De La Vina St, which traded for $9.5 million. The mixed-use property at 2801 De La Vina St (home to Nick Rail Music) was purchased by a local investor for $3.4 million in June.
One unheralded area of recent sales activity is the Lagoon District/Lower Eastside area of Santa Barbara. With Haley and Gutierrez Streets as its artery and vein, the neighborhood has been evolving gradually into a sprawling variation on the Funk Zone concept, dotted with “adaptive” repurposing of industrial property for beer and wine, artisan retail, and office use. The area from Cota Street to US 101 and from Milpas Street to Anacapa Street has produced 21 sales valued at $47.3 million over the past 18 months. Almost all of those properties had either industrial improvements or undeveloped land. Most recently, 519 Garden St, 100-102 E Haley St, 719 Bond Ave, and 314 Edison Ave all sold in the second quarter. Read More Here.