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Deal in the works for smaller anchor at SLO’s Prefumo Creek

By   /   Friday, April 15th, 2011  /   Comments Off on Deal in the works for smaller anchor at SLO’s Prefumo Creek

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A deal is in the works for the 36,000-square-foot junior anchor spot at San Luis Obispo’s Prefumo Creek Commons shopping center. The San Luis Obispo Chamber of Commerce said the retailer filling that space is Dick’s Sporting Goods, a national chain.

Lee & Associates Central Coast broker Clarice Clark — who represents the landlord — told me she shouldn’t confirm the tenant until the transaction closes, but that a deal is in the final stages. Target, the anchor tenant for the $32 million project on Los Osos Valley Road, is slated to open in June or July this year, she said.

A 5,000-square-foot Mac Superstore will open this summer as well. A 7,441-square-foot Olive Garden and a 3,400-square-foot AT&T store will open next year.

South Coast on the mend

Big deals helped nurse the South Coast commercial real estate markets back to health in the first quarter, according to the latest report from Radius Group. Twenty-five commercial properties, excluding apartments, changed hands in the first quarter, more than twice as many as the 12 sold in the first three months of 2010.

If that pace is kept up throughout the year, 2011 will see more sales than any years since 2007, Radius said. Big sales deals include Santa Barbara’s La Entrada property at 35 State St., which sold for $5 million; the $11.5 million sale of Anacota Plaza on Anacapa Street; and the Hollister Professional Building in Goleta, which sold for $8.1 million. On the leasing side, Network Hardware Resale leased a total of 94,300 square feet in two separate deals in Goleta, helping to put a dent in the vacancy rate.

With the exception of Carpinteria’s industrial market, the South Coast saw vacancy rates drop in all of its lease markets. The positive turn was the first time
in four years that the three cities’ office indices saw a reduction in vacancy, Radius said. Fueled by a number of large deals, Santa Barbara saw about 50,000 square feet of office space taken off the market.

Goleta saw its vacancy rate drop 18 percent, helped along by Network Hardware and Yardi Systems (see Deal of the Week, below).

By the numbers, here’s how Carpinteria, Santa Barbara and Goleta looked at the end of the first quarter:

• Santa Barbara’s office and R&D vacancy stood at 5.2 percent. Its industrial vacancy was an envious 1.1 percent, lower even than its 1.9-percent retail vacancy.

• Goleta’s office and R&D vacancy dropped to 11.2 percent. Its industrial vacancy also fell, to 5.7 percent.

• Carpinteria’s office and R&D vacancy rate remains high, but dipped to 14.9 percent. Its industrial vacancy rate climbed to 14.8 percent.

Under construction

The Towbes Group has started construction on the second phase of Lavigna, a single-family home development in Santa Maria. The project will create the
first new single-family homes in the city in more than two years, Towbes said. The 21-home second phase follows the original 22 homes built by Towbes in
2008. When finished in 2015, the project will include 118 homes with floor plans ranging from 1,200 to 2,000 square feet and prices starting in the mid-$200,000s.

DEAL OF THE WEEK

• Software firm Yardi Systems continues to snatch up space in Goleta, recently signing a lease on 15,563 square feet at 425 Pine Ave., in the Goleta Business
Park. Hispanic Business Publications formerly occupied the space. Yardi, which makes software for real estate firms, already occupies 98,000 square feet on
South Fairview Avenue in Goleta, where it houses its corporate headquarters. Greg Bartholomew, Francois DeJohn and Steve Hayes of Hayes Commercial Group represented all parties in the recent lease deal.

Privately owned Yardi has more than 1,800 employees in 22 offices worldwide, including about 400 employees in Goleta. In a news release, Bartholomew said the deal was “part of a healthy first quarter for office leasing in Goleta.”

• Contact Marlize van Romburgh at [email protected]

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About the author

Managing Editor

Marlize van Romburgh covers banking, finance, agricultural and viticulture. She writes a weekly column on commercial real estate and a monthly column on the restaurant industry. Follow her at @marlizevr

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