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3720 Capitola Rd - Capitola Redevelopment Site 0.6 Acres of Residential Land Offered at $5,500,000 in Santa Cruz, CA 95062
Investment Highlights
- High visibility infill redevelopment site on Capitola Road
- Ministerial approval for affordable housing through AB 2011
- Near parks, beaches, popular tourist destinations, libraries, and community centers
- Ideal site for retail, affordable housing, senior living, or hospitality
- Walking distance to Target, Whole Foods, New Leaf Community Market, Trader Joe’s, CVS, and dozens of restaurants and shops
- Capitola Mall was recently re-zoned to allow development of more than 1,700 residential units
Executive Summary
3720 Capitola Road is an approximately 0.60-acre redevelopment site located at the corner of Capitola Road and Bulb Avenue in the City of Capitola. The site has a rectangular shape with frontage and access along two streets.
COMMERCIAL REDEVELOPMENT POTENTIAL
The site has an excellent location on a commercial thoroughfare in one of the major shopping destinations in Santa Cruz County. The zoning for the property is Community Commercial, which permits a wide range of personal services, business services, retail sales, and office use.
RESIDENTIAL REDEVELOPMENT POTENTIAL
As with most communities in the area, Capitola has a need for more housing. Redevelopment of the site with residential uses is allowed in a mixed-use project, and development of affordable housing would be permitted using state laws such as AB 2011. Additionally, the state density bonus law could be used to build an affordable housing project at a higher density than is permitted under the existing zoning.
WALKING DISTANCE TO RETAIL AMENITIES
The subject property is located in the main retail destination in the county. There is approximately 1.2 million square feet of retail space at the intersection of Capitola Road and 41st Avenue, including the Capitola Mall. The mall is the largest retail development in Santa Cruz County and spans 46 acres. Major retailers in the area include Target, Whole Foods, New Leaf, CVS, Trader Joe’s, Kohl’s, Macy’s, Michaels, and Ross.
ACCESS TO OUTDOOR RECREATION
3720 Capitola Road is a short distance from multiple beaches and local, county, and state parks. Pleasure Point, The Hook, and Capitola Beach are among the top surfing destinations in Santa Cruz County and attract surfers of all experience levels.
CAPITOLA MALL RE-ZONING
In March 2026, the Capitola City Council adopted an update to the zoning ordinance for the Capitola Mall. Under the new zoning, a total of 1,777 new residential units could be developed on the mall site. The addition of housing to the mall site will transform the property into a walkable mixed-use district.
Property Facts
1 Lot Available
Lot
| Price | $5,500,000 | Lot Size | 0.60 AC |
| Price Per AC | $9,096,712.94 |
| Price | $5,500,000 |
| Price Per AC | $9,096,712.94 |
| Lot Size | 0.60 AC |
Corner redevelopment site at Capitola Road and Bulb Avenue with dual-street frontage and Community Commercial zoning. Located near Capitola Mall, Target, Whole Foods, Trader Joe's, beaches, and major retail amenities.
Description
3720 Capitola Road presents a redevelopment opportunity in the heart of Capitola's primary retail corridor. The corner location offers frontage and access along both Capitola Road and Bulb Avenue, providing strong visibility and accessibility. Community Commercial zoning supports a variety of retail, office, service, and mixed-use development possibilities. The property is within walking distance of major retailers including Target, Whole Foods, Trader Joe's, CVS, and numerous restaurants and shops. Nearby beaches, parks, and popular coastal attractions enhance the area's appeal for residents, visitors, and businesses alike. Additional long-term growth potential is supported by the planned transformation of nearby Capitola Mall, where zoning now allows up to 1,777 new residential units.
Property Taxes
| Parcel Number | 034-181-14-000 | Improvements Assessment | $459,000 |
| Land Assessment | $2,346,000 | Total Assessment | $2,805,000 |
Property Taxes
