Indochine, a nightclub and lounge at 434 State St. in Santa Barbara, announced its closure on Instagram this week. But it won’t be closed long, since a new owner is already lined up.

“This weekend Indo threw its last napkins,” the post states. “We are so very honored and appreciative of your support Santa Barbara, we wouldn’t have been able to do this without all of you.”

The post thanked the staff for their hard work put into the nightclub, as well as the support from the community.

“Santa Barbara we absolutely love you and thank you for all the love Indo has received and the memories and the memories will not be forgotten,” according to the post.

A Department of Alcoholic Beverage Control public notice of application for ownership change is posted on the front window of the property. The applicant is listed as “Fake Plastic Trees, LLC.” The public notice was placed July 29.

The new managing partner, Chris Dixon, told Noozhawk that they will reopen the business next weekend.

Santa Barbara City Councilman Oscar Gutierrez said he has fond memories of the club.

“It’s sad to see a business my friends and I spent time celebrating birthdays and holidays, and where I briefly worked as a bouncer over 20 years ago, has closed,” Gutierrez said in response to the initial closure news. “As of now, I don’t know why the bar closed, but I can’t help but think about how the 400 block business owners have been demanding to have their block closed to traffic like the other blocks since day one of the closure.

Bibi Ji Reopens on State Street

The former McDonald’s building has a new tenant.

Bibi Ji has opened at its new location, 1213 State St. in Santa Barbara. The restaurant was formerly on the 700 block of State Street.

“The celebrated modern Indian restaurant and low-intervention wine bar is excited to announce its grand reopening at 1213 State Street in Santa Barbara’s vibrant ARTS district,” the company said in a news release. “Directly across from the famed Granada Theatre, the new location offers a significantly expanded space, innovative design and an elevated dining experience.”

The new space has a capacity of about 70 seats, double the previous location, and its Michelin Guide-recognized menu includes dishes such as the Barra Kebab (lamb chops), “Murgh” Tikka (tandoori chicken) and the signature Bibi Ji Dal Makhni, according to a news release.

The expanded wine cellar offers wines collected since the restaurant originally opened in 2018, the news release states.

Retail on the Rise

Retail is bouncing back, according to Hayes Commercial Group’s second-quarter report.

South Coast retail transactions were up 18% at midyear, and vacancy tightened to 2.66%, the lowest vacancy rate in seven years.

“It also represents a 36% contraction of inventory from the peak three years ago, a
remarkable recovery given how dismal the prospects for brick-and-mortar retail appeared during the pandemic,” the report states.

Retailers are still preferring smaller spaces, however. The South Coast has had only five retail leases over 5,000 square feet during the past two years, compared with 13 leases during the two years before that. The average leased space was 1,850 square feet, which is 46% smaller than the five-year average, according to Hayes.

There’s good news downtown. About 14 leases were signed between the 400 and 1300 blocks of State Street. The storefront vacancy rate on the corridor decreased to 12.4%, which amounts to a 12% reduction of vacant storefronts over the past year.

Hayes says athletic leisure is a “booming retail phenomenon.”

The two biggest State Street leases this year were Vuori, 636 State St., and Alo, 821 State St., both of which sell leisure clothes. Venture Apparel also opened earlier this year, at 428 State St., according to Hayes.

Soft Goods Popular on State Street

Bungalow West, which sells items such as clothing, travel gear, blankets, towels, pillows and other merchandise, opened at 723 State St. in Santa Barbara, the one-time home of Chipotle a decade ago.

The Yes Store opened at 1015 State St., and Tilly Times, a T-shirt and souvenir shop from Lahaina, Hawaii, signed a lease at 723 State St.

In fact, soft-goods retail dominated the leases through midyear, while the lone food-use lease was 413 State St., signed by the proprietors of Aperitivo, according to Hayes.

On Coast Village Road in Santa Barbara, Faherty, a clothing brand, leased 1155 Coast Village Road.

There are signs of State Street on the upswing, according to Hayes.

“When the overdue Master Plan is finally implemented, the lifting of that layer of uncertainty will allow tenants and property owners alike to make more informed real estate decisions, hopefully contributing to a phase of revitalization,” Hayes states. “State Street is a complex challenge with no perfect solution, but at this point, remaining in limbo is worse than choosing a course of action.”