REAL DEALS: by Maria Zate
August 22, 2007

There’s plenty of activity going on over at the much-talked-about Paseo Chapala mixed-use project in downtown Santa Barbara.

For starters, the entire commercial condo space was sold to one buyer. The 8,060-square-foot space, with the adress of 721 through 729 Chapala St., was pruchased by a local investor. The list price was $5.9 million, and county records show the recorded deed amount was $5.5 million.

Brad Frohling of Radius Group Commercial in Santa Barbara represented the unknown buyer and Brian McCririe and Steve Hayes of Leider Hayes Commercial represented the seller and project developer, Bermant Development of Santa Barbara.

Originally, Bermant Development offered to subdivide the commercial spaces into units starting as small as 250 square feet and sell them to several local business owners. Former retailers, such as Hazard’s Cyclesport and Mon Amie Salon, were given first dibs on buying the condos, but deals could not be put together.

So it’s espeically comforting to find out that the first commercial lease inked at Paseo Chapala is for Esau’s Cafe, considered a Santa Barbara institution among downtown eateries.

Esau’s has leased 1,600 square feet (including outdoor patio area) near the Ortega side of Paseo Chapala. The rest of the commercial spaces are still available.

For 52 years, Esau’s was located on State Street near the corner of Gutierrez Street. It served up hearty breakfasts and lunches at prices that were light on the wallet. On weekends, it was known as the place where night owls congregated for cheap eats after an evening of barhopping.

The Esau’s name comes from its original owner, Tom Esau, a local chef who brought his famous buttermilk pancake recipe to Santa Barbara from the 1939 World’s Fair in San Francisco.

In 1978, Scott and Arti Stanley purchsed the cafe and ran the State Street location until their lease expired in mid-2006. Unable to reach an agreement on a new lease, the Stanleys were forced to close the original Esau’s. (They continue to run a second Esau’s location which they opened in 2002 on Linden Avenue in Carpinteria).

The new Esau’s should be ready to serve up its legendary pancakes come December to hungry Santa Barbarans and visitors, Mr. Stanley told the News-Press.

“The menu will be the same as the Carpinteria restaurant, which serves breakfast and lunch. And I’m also developing a dinner menu for the new Esau’s,” he explained. “But this is not going to be a high-end restaurant. What we want is to have a cafe with good food at good prices that’s open from 6 in the morning until 10 at night.”

With 13-foot-high ceilings in the Paseo Chapala location, Mr. Stanley said that he plans to hang surfboards on the wall along with flat-screen televisions.

“Were going to have a happy cafe,” he added. “We’re going to give Santa Barbara back its Esau’s.”

Paseo Chapala has also started to welcome its first residents. So far, out of the 29 total condos for sale, four market-rate units and three affordable units have closed escrow, according to Chris Agnoli, who is handling the condo sales. Some buyers have already moved in, despite the ongoing construction that is expected to last until the end of September.

One of the largest units available, a two-bedroom, two-bath plus, with a separate office sold for $2.625 million, according to county records.