This offering is a rare, once in a generation opportunity, to acquire a trophy corner location in the supply constrained City of Santa Cruz. Please contact the exclusive listing agent, Jon Holmquist, for the complete offering memorandum.
The subject property is a 35,283 square foot corner development project, complete with approved permits for construction of thirty-two condominium units and two ground floor retail spaces. The owner has already received tentative map approval, completed concept plans, engaged and completed projected project and construction costs by a reputable builder, and spent two years processing and getting approved permits from the City of Santa Cruz. The offering consists of three adjacent parcels located at 1800, 1812, and 1818 Soquel Drive, Santa Cruz, CA which is at the high traffic intersection of Soquel Drive and Hagemann Avenue. The property is currently occupied by May’s Sushi Bar & Grill (lease expires May 31st, 2018), and Sunset Auto Sales (lease expires April 30th, 2018).
The City of Santa Cruz is home to a population of 17,335 University of California Santa Cruz students and is consistently supply constrained, with minimal new construction, and a notoriously difficult permit and approval process. Rents in the City of Santa Cruz have increased 7% during the trailing 12 months prior to October 2017 according to a recent survey by www.rentcafe.com, and Santa Cruz was determined in 2016 to be “California’s Least Affordable City” by Silicon Valley news, with a lack of housing for the ever-growing population. With an average home price near the million-dollar mark, the proposed project represents the coveted chance to develop a core, “A” quality location, with an irreplaceable location and tremendous tenant demand. Current condominium inventory in Santa Cruz is primarily that of older, vintage properties, with an average sales price of $633 per square foot and thus a new owner may benefit from the potential individual sale of the condominiums once completed, with a potential multi-million-dollar profit margin.
