Student Housing - Arroyo House, Santa Barbara
Fully Remodeled Student Housing Asset in Santa Barbara | 26 Beds | 6.45% CAP Rate
Marketing description
Welcome to Arroyo House - a fully remodeled, turn-key investment property on a massive lot in Santa Barbara's highly sought-after Mesa community.
Currently operating as premium student housing, Arroyo House serves students from SBCC, UCSB, and Westmont College. This exceptional property features 10 fully furnished rooms with 26 total beds, currently configured as (3) Doubles, (5) Triples, (1) Quad, and (1) Single. Each unit has been tastefully upgraded with high-end furniture and modern finishes, offering a comfortable and stylish living environment.
Outdoor amenities include new landscaping, a volleyball court, and ample private parking — enhancing both tenant experience and long-term value. Additionally, the solar system is fully paid off, and a 400-amp commercial-grade electrical panel has been added.
The property has seen approximately $60,000 in capital improvements since July 2025, including a brand-new sewage tank with high-capacity ejection pumps. This upgrade is expected to extend pump life from roughly 2 years to 8–10 years, eliminating what had historically been the property's most recurring maintenance burden.
Whether you're looking for a cash-flowing asset or a unique student housing opportunity, Arroyo House checks all the boxes.
This large single-family residence offers a high-occupancy dwelling ideal for use as a sober living home, recovery housing, transitional housing, supportive housing, group home, or other structured living environment, with flexibility for shared supportive residence, community-based housing, co-living property, shared housing, or room-by-room rental opportunities.
Investment highlights
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- Offered At: $4,185,000
- Rooms/Beds: 10 Fully Furnished Rooms/26 Beds
- Roof Configurations: (3) doubles; (5) triples; (1) quad; (1) single
- Price Per Bed: $165,192
- Building Size: ±4,217 SF
- Lot Size: ±55,321 SF (±1.27 acres)
- Cap Rate: 6.45% ('26/'27 Sch. Yr.)
- GRM: 9.65 ('26/'27)
- NOI: $270,498
- Parking: 14 Parking Spaces (12 Paid)
- Laundry: No Cost to Tenants
- Zoning: RS-15 (E-1)
- APN: 035-040-036
Capital Improvements - Sellers have spent approximately $60,000 since July 2025 plus additional costs since taking ownership.
Plumbing
- New sewage tank installed with high-capacity ejection pumps (2025)
- Replaced both water heaters (2025)
- Installed new sink faucets and valves (2024/2025)
- New garbage disposals and faucets in all three kitchens
Electrical
- Commercial upgrade from 200-amp to permitted 400-amp panel
- Nine-month project involving consultants and Edison administration
Solar
- Purchased system offsetting effectively all on-grid electrical requirements
Landscaping/Drainage
- Regraded majority of the property to optimize drainage and water flow
- Removed mature trees encroaching on roofline to protect structure, reduce fire hazard, and improve sunlight exposure
Kitchens
- Main Kitchen: New countertops, fixtures, and hardware
- Garage Kitchen: Fully updated with appliances, cabinets, countertops, lighting, and fixtures
- Kitchenette at Beachside room: New cabinets, sink, faucet, cooktop, and refrigerator
Shed
- Rebuilt termite-damaged framing and repainted storage shed
Deck
- Repaired and replaced rotted deck boards
HVAC
- Replaced all dryer ducts with hard pipe for easier maintenance and fire safety
Listing Contacts
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