September 28, 2022
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Sale of State St. building second-largest this year

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Santa Barbara’s State Street saw its second largest retail sale this year as the former home of Left at Albuquerque was sold.

Although the terms of the sale were not disclosed, the 5,753-square-foot building at 700 State St. was listed for $4.1 million. Broker Michael Chenoweth of Radius Group represented the owner and Mike Heisheima of Epsteen and Associates represented the buyer in the transaction.
 
The 700 State St. sale represents the second-largest retail sale in downtown Santa Barbara, just behind the $10 million sale of the Borders bookstore building at 900 State St., and only the fourth retail sale on the street this year.
 
Although Santa Barbara’s main drag has seen a slew of vacancy signs since the economy tanked, the core downtown retail area has held steadier. According to a mid-year market report by Santa Barbara-based Hayes Commercial Group, lease rates in the 600 to 900 blocks of State Street have declined only 1 percent since 2008, but rates in the 300 to 500 and 1,000 to 1,200 blocks have tumbled by 31 percent. The downtown corridor saw 11 new leases in the first half of the year, including Mac’s Fish & Chips and Crossroads Trading Co.
 
The report also noted that Santa Barbara retail property sales prices have continued to decline, down 7 percent since the end of 2009. Limited access to capital and high vacancy rates have kept many investors on the sidelines, but those with cash to spend are taking advantage of low prices.
 
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