They call it a match made in heaven.

Cantwell’s, one of Santa Barbara’s most cherished neighborhood markets, has met the Isla Vista Co-op, another community jewel.

The result? The Isla Vista Co-op has taken over Cantwell’s in what is part of a major transformation for the corner of State and Arrellaga streets.

Also proposed for the site is a 27-unit housing project that is working its way through the city planning process. The co-op says the dream union will last and that it intends to remain at the site after the housing is built.

In interviews with Noozhawk, the team behind the transformation — Pradeep Shastri, property owner, Hernan Cornejo, general manager of the Isla Vista Co-op, and Jay Blatter, principal at Hochhauser Blatter Associates — explained the change and why it works for them and the community.

The housing project plans call for 15 one-bedroom units and 12 two-bedroom units, with an average unit size of 811 square feet. Three of the residences will be leased at below-market rents. The building would be 48 feet tall.

The site also would include 34 parking spaces — 26 in the basement and eight on the first floor.

“The project is going really well,” Blatter said. “We’re excited.”

It could take another two years for the project to reach final approval, he said.

Shastri, who owned Cantwell’s, told Noozhawk that he sold the business and the assets to the Isla Vista Co-op so he could have more time to focus on the housing project. He owns the property that Cantwell’s/IV Co-op sits on. He heard that the co-op was looking to expand from its Isla Vista location, so they worked out a deal.

The official changeover happened in January, and the Isla Vista Co-op will hold an official grand opening in April. Already, fresh produce lines the aisles, and there’s a vegan section, along with more fresh food choices. The new name will be “The Isla Vista Co-op, featuring Cantwell’s Market.”

Shastri purchased Cantwell’s in 2016. He previously owned hotels and restaurants in Marina Del Rey, Beverly Hills and Santa Barbara. He also was the executive chef at the Century Plaza Hotel.

He and his family live in Santa Barbara, and he said he wanted to find a business that would be community-oriented.

“Their success delivers to my success, and it will create a value for all of us,” Shastri said.

He added that he is still widely available and offers his advice as needed.

Cornejo said the IV Co-op has about 1,650 members and was looking to expand into Goleta. Cornejo said they identified a spot in the Calle Real Shopping Center, but a local competitor “blocked” them from leasing a space.

So, he kept looking and eventually found Shastri, who was looking to bring in a different business so that he could focus on the housing development.

“This is a dream location,” Cornejo said. “It is a perfect location. It was the perfect timing for both of us.”

The IV Co-op has lost about 200 owners, he said, and many of its customers have left Isla Vista. About 80% of the sales are to the UCSB community, he said.

“Many of the families that used to live in that community moved away, so now it is very concentrated to the student community,” Cornejo said.

Later in the year, they plan to launch an e-commerce platform so customers can order online.

Cornejo said the housing project is still far away, so the IV Co-op is looking to grow the business now. Once the housing development is done, both Shastri and Cornejo told Noozhawk, the IV Co-op would have the first right of refusal to continue in the spot.

“This market is here to stay,” Cornejo said. “I hope my great-grandchildren will still be right here when I am gone.”

He added that customers should expect lower prices because the IV Co-op belongs to a national buying group that allows them to buy goods for less from vendors. He also expects to expand the wine selections. He said he is “a wine enthusiast.”

“I really want to be a preferred location for wines that are not available in the supermarket,” Cornejo said.

He also is looking to add another chef and expand the deli. Cornejo kept all staff members who were previously working at Cantwell’s.

“It is a very beloved market,” Cornejo said.