The $10 million sale of 900 State St. in Santa Barbara makes for the largest commercial real estate deal in the city in more than two years and signals new life in the city’s downtown.
The 38,000-square-foot retail space where Borders bookstore is currently housed was sold on April 5 to an affiliate of SIMA Corp.
“Prominent buildings in AAA locations such as 900 State rarely trade in Santa Barbara,” Brad Frohling of Radius Group, a broker on the deal, said in a release. “The buyer recognizes the value of front-and-center Santa Barbara real estate and this should prove to be a great investment.”
Borders maintains a long-term lease on the three-story building, which was converted from a bank building before the retailer moved in. Bank of America sold the property to Agree Realty in 1995.
“The purchase of 900 State Street is a wonderful addition to our portfolio of showcase properties and represents the fourth acquisition of our recently launched MetWest-SIMA Real Estate Fund,” Kevin Burnes, president of SIMA, said in a release.