Zoned M-1 Multi-Purpose Industrial
For Sale
$2,795,000
601 E Montecito St, Santa Barbara, CA 93103
Zoned M-1 and designated a historic landmark, this multi-purpose industrial building is offered for sale through bankruptcy court approval.
Property Size21,010 SF
Price / SF$133.03
Days on Market455
Property Features for 601 E Montecito St
General Information
Standard status
Active
Size
21,010 SF
Zoning
M-1
Listing Agency:
Radius Group Commercial R.E.
(805) 879-9623
Listed By:
Gene Deering · License #01450943
(805) 879-9623
Source:
Exprealty
Added: May 27, 2025
Changed: Aug 23
Last Checked: Aug 21 at 9:05PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Radius Group Commercial R.E.
Investment Insights
Based on property information with market context.
This offering presents an approximately 21,010 SF multi-purpose building zoned M-1. The property was designated a Historic Landmark in 2020, adding a layer of historic status to the ownership and redevelopment considerations. The sale is subject to Bankruptcy Court approval and may be subject to overbid, so prospective buyers should review the process and timing with the listing agent.
The property is located at 601 East Montecito Street in Santa Barbara, CA 93103. The listing materials note a major price reduction, and call attention to the disclosures available upon request through the listing agent.
For buyers evaluating M-1 zoned industrial use within a historic landmark designation, this structure offers a defined path to due diligence around permitted activities and any applicable historic requirements. The multi-purpose configuration can be a practical fit for organizations seeking an industrial-style building rather than a conventional office-only asset, with the understanding that the bankruptcy-court approval process and disclosure package will be important to advancing the transaction.
The property is located at 601 East Montecito Street in Santa Barbara, CA 93103. The listing materials note a major price reduction, and call attention to the disclosures available upon request through the listing agent.
For buyers evaluating M-1 zoned industrial use within a historic landmark designation, this structure offers a defined path to due diligence around permitted activities and any applicable historic requirements. The multi-purpose configuration can be a practical fit for organizations seeking an industrial-style building rather than a conventional office-only asset, with the understanding that the bankruptcy-court approval process and disclosure package will be important to advancing the transaction.
Key Highlights
- Approx. 21,010 SF multi‑purpose building
- Zoned M‑1
- Designated a Historic Landmark in 2020
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$128,665
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.60%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,573,300
$2.6M
Cap Rate 7%
$1,838,071
$1.8M
Cap Rate 9%
$1,429,611
$1.4M
Market Conditions
NOI Build-Up for 21,010 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$214.3K $10.20/SF
− Vacancy
−$30.5K −$1.45/SF
EGI
$183.8K $8.75/SF
− OpEx
−$55.1K −$2.62/SF
NOI
$128.7K $6.12/SF
Area
Santa Barbara County, CA
Vacancy
14.23%
Lease Rate
$10.20 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,573,300
Cap Rate 7%
$1,838,071
Cap Rate 9%
$1,429,611
Alternative Uses
Best Use
Flex RnD
$3.85M
$3.37M – $4.49M
NOI $269,399 @ 7.0% cap · market cap 9.64%
Second Best
Industrial
$1.84M
$1.61M – $2.14M
NOI $128,665 @ 7.0% cap · market cap 4.60%
Theoretical Best
Multifamily LT 5
$6.59M
$5.77M – $7.69M
NOI $461,592 @ 7.0% cap · market cap 16.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,105
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 93103, CA
20,029
Population
8,069
Households
2.5
Avg Household Size
39
Median Age
46%
College-Educated
87%
High-School Grad
5.5 sq mi
ZIP Area
3,642
Density / Sq Mi
$118,118
Median Household Income
$46,441
Median Earnings
$2,407
Median Rent
$1,555,600
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Flex space - Zoned M-1 and designated a historic landmark, this multi-purpose industrial building is offered for sale through bankruptcy court approval.
Where is this flex space located?
The property is located at 601 E Montecito St Santa Barbara, CA.
What is the asking price?
The asking price for this property is $2,795,000.
What are key features of this property?
This property features: Approx. 21,010 SF multi‑purpose building; Zoned M‑1; Designated a Historic Landmark in 2020
