December 1, 2006
Neighborhood Revival

By Barbara Pearson, Pacific Coast Business Times, Real Estate

The first step has been taken to improve the image of upper State Street.

The City of Santa Barbara has completed the public outreach portion of its Upper State Street Study and Improvement Plan, and should be posting a summary of their findings between Dec. 1 and mid-December. Some major tenants and land owners have already bought or leased space on upper State, suggesting that investors have caught wind of the area’s potential.

“I think it has just become a very desirable area to own real estate and people are starting to bet on good changes coming our way,” said Francois DeJohn of Leider Hayes Commercial Real Estate.

Once the information from this first phase of the vision has been analyzed, a draft study will follow by the end of January, which will then be reviewed again by the public, boards and commission involved in the initial process. Finally, the vision will need to be approved by the city council and then implemented.

Elements of the draft study will include development standards and urban design guidelines within the parameters of the current general plan. Appearance issues such as landscaping, location issues that allow views and setbacks, scale, pedestrian access, parking, and traffic are all addressed in the vision.

John Ledbetter, principal planner for the City of Santa Barbara, said he believes that six major projects on upper State were the driving force for conducting the State Street study.

Those projects include the proposed Whole Foods market at the Circuit City center at 3761 State St., the Sandman Inn redevelopment proposal at 3714 State St., the State Street Lofts with 55 condominiums and 8,800 square feet of commercial space, the La Sumida development, with 12,708 square feet of office space and seven rental units, a Century 21 office with four condominiums, and a 6,745-square-foot vacant gas station.

The projects raised the need for a plan that would address immediate needs in the area and bring a sense of continuity to the hodgepodge of developments scattered between the Five Points shopping center and the Trader Joe’s area on De La Vina. The challenge of the vision is to give the area a sense of place and maintain convenient pedestrian and automobile access as these and other new projects fill in the corridor.

An information booklet was provided, followed by a walking tour and two workshops conducted to encourage public comments and input.

“I think the most positive outcome for the study would be that new development that comes into the upper State Street area is consistent with what the community wants to see,” Ledbetter said.

Existing shopping centers in the area, such as La Cumbre Plaza and Loreto Plaza, are currently amidst upgrades and renovations. Macerich Corp. purchased the La Cumbre center for $48 million in July 2004. Since then, Macy’s has replaced Robinsons-May, Coach recently opened and J.Crew is scheduled to open in January.

Along with landscaping and other property updates, DeJohn said that the center is getting a more upscale feel, which will attract more high-end tenants.

DeJohn has brokered the sales of four office buildings on the upper State corridor in the last year and a half.

“It’s not an accident that there have been a lot of sales up here,” he said. “A lot of investors are feeling positive about upper State Street.”

DeJohn said that since the beginning of 2003, commercial real estate transactions in the upper State area have totaled more than $150 million. It’s a sign “for even better things to come,” DeJohn said.

In the long-term, he said, the area is a good place to own real estate, because of its beneficial location between the demographics of San Roque and Hope Ranch. He also said it is an ideal center point between Santa Barbara and Goleta.

“I personally think it’s exciting,” DeJohn said. “There is a lot of stuff that could happen up here that could be beneficial to the city.”

The upper State Street vision is a precursor to the city’s Santa Barbara 2030 general plan update that will address broader issues with more significant policy challenges such as commercial and economic development, housing density, workforce housing and housing affordability.