3501 Portola Dr 1.83 Acres of Commercial Land Offered at $6,900,000 in Santa Cruz, CA 95062

3501, 3507, 3509, 3513 Portola Drive is a well-located commercial parcel in Santa Cruz, California, situated along the highly visible and walkable Portola Drive corridor. The property is zoned C-2 (Community Commercial) under Santa Cruz County’s zoning code and lies within the Urban Services Line, making it eligible for mixed-use residential redevelopment under both local and state planning frameworks. Investment Considerations: • Prime Redevelopment Opportunity: The site’s C-2 zoning, corridor location, corner location, and low existing FAR all serve to position it squarely within the County’s Sustainable Santa Cruz Plan for mixed-use residential infill. • Zoning Advantage: C-2 zoning allows multifamily residential above ground-floor commercial by right, with potential for State Density Bonus Law and SB 35 streamlining if thresholds are met. And of course, AB 2011 which allows the developer to circumvent local planning regulations if the project is 100% affordable. • Strong Market Indicators: Recent land sales in Santa Cruz County show high demand for C-2 parcels suitable for redevelopment, with pricing ranging from $65–$135/SF, depending on location and entitlement status. • Estimated Unit Yield: Based on General Plan overlays and density allowances, the site could support 35–55 base units, and 60–80 units with density bonuses. A likely 100% affordable project would yield 75-85 units, or higher. • Buyer Profile: The most likely buyers include affordable housing developers, regional mixed-use builders, and merchant multifamily investors * The Eastside/Mid-County corridor continues to demonstrate stable fundamentals across multifamily, office, and retail sectors as of Q4 2025, with limited new construction and steady demand supporting asset values. * Retail fundamentals in Mid-County are improving, with vacancy declining to 5.8%, down 110 basis points year-over-year. This shift is driven by 53,000 SF of net absorption and 15,000 SF of new deliveries, primarily in the Aptos Village area. * Development Outlook: Across all sectors, the corridor is characterized by limited new supply, low vacancy, and steady rent growth, creating favorable conditions for redevelopment. The subject property’s C-2 zoning, large lot size, and corridor frontage position it well for mixed-use or multifamily development. With no active construction in the Eastside multifamily submarket and strong demand for housing, the site offers a rare opportunity for infill development in a constrained market. * Property Related Materials including Title Report, Leases, Rent Roll, & Phase II Report are on file and available to qualified buyers after first signing a Confidentiality Agreement. Contact Agent(s) for more information.