Friday, August 17 , 2018, 1:23 am | Fair 69º



New Tahitian Apartments in Isla Vista Changes Ownership

The 63-unit New Tahitian Apartments located at 6739 El Colegio Road in Isla Vista recently sold to a local investor for $14.3 million, marking the largest sale by far of a multifamily property on the South Coast in 2013.

Escrow closed June 13. The transaction is also the largest multifamily sale in Isla Vista since 2010 when the Tropicana Del Norte Apartments sold for more than $37 million.

“Apartments continue to be at the top of many real estate investors’ short list, but opportunities like this in Isla Vista are few and far between,” Radius Commercial Real Estate & Investments founder Steve Golis said.

Golis and Radius agents Brian Johnson and Jon Standring represented the seller of the New Tahitian. The buyer was represented by Evan Bank of Prudential California Realty, Monarch Beach Office.

Golis underscored the Tahitian’s close proximity to UCSB as one of the main selling points for the new owner, Capitoline Properties LLC, a relatively new real estate investments company based in Santa Barbara with an office in Orange County.

“Isla Vista is just a very attractive micro-market,” Golis said. “With UCSB’s large student population in the backyard, and IV’s high population density, second only to Manhattan, IV’s apartment vacancy tends to be among the lowest in California and the nation. That translates to consistent rental income at premium rates, and that gets the attention of investors when a property of this size in this area comes to market.”

“We’re looking to build a portfolio throughout California, especially here in Santa Barbara and the Central Coast,” a representative from Capitoline said. “We seized this opportunity as a long term investment, especially because of its strong value add potential and the strength of the rental and real estate market as a whole.”

Shortly after the recession hit in late 2008, apartments became a hot ticket among investors and interest has remained strong.

“It’s not uncommon to receive numerous offers from qualified buyers, including offers over the asking price, non-contingent and all cash. Apartments offer everything a conservative investor looks for,” said Golis, pointing to historically low vacancy rates (current vacancy in Santa Barbara County is just 0.94 percent according to the most recent Dyer Sheehan survey), attractive financing and a strong rental market.

Because of the popularity of the category, the market has tightened dramatically in the past few years. There have been just 11 multifamily sales in Isla Vista since January 2011 (four in 2013, two in all of 2012 and five total in 2011). There were 14 sales in 2010 alone, 11 in 2009 and 14 in 2008.

“More often than not, commercial properties sell when there is vacancy in the building and owners aren’t generating any income to cover expenses,” Golis said. “There aren’t many apartments on the market right now because many are in a position where their properties are 100 percent leased and they are making money so they have no compelling reason to sell.”

The New Tahitian Apartments was built in 1962 and was branded as the New Tahitian Apartments in 2008 when it underwent an extensive $1.6 million remodel.

“We plan on doing a full landscape as well as renovations to the pools and common areas,” the Capitoline representative noted. “Otherwise the property’s condition is solid as is.”

— Vince Coronado is the director of marketing communications for Radius Commercial Real Estate & Investments.

Support Noozhawk Today

You are an important ally in our mission to deliver clear, objective, high-quality professional news reporting for Santa Barbara, Goleta and the rest of Santa Barbara County. Join the Hawks Club today to help keep Noozhawk soaring.

We offer four membership levels: $5 a month, $10 a month, $25 a month or $1 a week. Payments can be made through Stripe below, or click here for information on recurring credit-card payments and a mailing address for checks.

Thank you for your vital support.

Become a Noozhawk Supporter

First name
Last name
Enter your email
Select your membership level

Payment Information

You are purchasing:

Payment Method

Pay by Credit Card:

Mastercard, Visa, American Express, Discover
One click only, please!

Pay with Apple Pay or Google Pay:

Noozhawk partners with Stripe to provide secure invoicing and payments processing.

  • Ask
  • Vote
  • Investigate
  • Answer

Noozhawk Asks: What’s Your Question?

Welcome to Noozhawk Asks, a new feature in which you ask the questions, you help decide what Noozhawk investigates, and you work with us to find the answers.

Here’s how it works: You share your questions with us in the nearby box. In some cases, we may work with you to find the answers. In others, we may ask you to vote on your top choices to help us narrow the scope. And we’ll be regularly asking you for your feedback on a specific issue or topic.

We also expect to work together with the reader who asked the winning questions to find the answer together. Noozhawk’s objective is to come at questions from a place of curiosity and openness, and we believe a transparent collaboration is the key to achieve it.

The results of our investigation will be published here in this Noozhawk Asks section. Once or twice a month, we plan to do a review of what was asked and answered.

Thanks for asking!

Click Here to Get Started >

Reader Comments

Noozhawk is no longer accepting reader comments on our articles. Click here for the announcement. Readers are instead invited to submit letters to the editor by emailing them to [email protected]. Please provide your full name and community, as well as contact information for verification purposes only.

Daily Noozhawk

Subscribe to Noozhawk's A.M. Report, our free e-Bulletin sent out every day at 4:15 a.m. with Noozhawk's top stories, hand-picked by the editors.

Sign Up Now >

Meet Your Realtor Sponsored by Village Properties

Photo of Cimme Eordanidis
Cimme Eordanidis
"Since I truly enjoy doing what I do, interacting with people and representing them during one of life's most exciting events is very rewarding."

Full Profile >