La Marina Apartments 440 Por La Mar Dr

In a premier coastal Southern California waterfront-area location, the sky’s the limit for this ultra-rare waterfront-area 8-unit multi-family offering steps to Santa Barbara’s best beach East Beach. The building is currently operated as standard long-term unfurnished rental apartments, but the R-4 zoning designation and location within the Coastal Zone, could allow for shorter-term rental uses. As a true “trophy” asset in an A++ location, other creative higher-return uses such as furnished long-term luxury rentals, corporate rentals or specialty group rentals, all become possibilities. Furthermore, new Accessory Dwelling Unit laws may allow 2 more units to be built.
The property’s current good condition is reflective of 20+ years of local pride-of-ownership hands-on management. 6 of the 8 units include various levels of existing upgrades, but with plenty of room remaining for a new owner’s value-add to a next level of luxury appropriate for the location. Even with no further value-add improvements, the projected cap rate after a next AB 1482 round of rent bumps is estimated at ~4.0%, considered a great number for a solid waterfront-area apartment building in Santa Barbara. If value-add projects or other re-positioning is undertaken by a new owner, the cap rate potential could climb much higher. 2 of the 8 units have been kept intentionally vacant for the next owner to have a head start on re-positioning the property for their preferences.
Review the Offering Memorandum to see more property details, financial projections, and a description of nearby amenities which would be enticing for future high-end tenants. Residents and/or an owner-occupant would be within 1-2 blocks of casual and upscale dining, as well as the world-renowned volleyball courts and soft sand of East Beach. Dozens of additional restaurants, wine tasting and boutique retail are all within about 1 mile either in the direction of State Street / Stearns Wharf to the west, or Coast Village Road in Montecito to the east. Only a small handful of multi-family properties of this size or larger were ever built in the waterfront areas of Santa Barbara - don’t miss this rare generational investment opportunity!