Listed by Radius Commercial Real Estate & Investments, Radius Commercial Real Estate & Investments Santa Barbara
$2,900,000
431 Ellwood Beach Dr
Details
APN 079553005
Property Type Multifamily
Sub Type Apartment Building
Square Footage 6,450
Units 7
Cap Rate 5.20%
NOI $150,746
Occupancy 100%
Tenancy Multi
Price per SqFt $450
Year Built 1970
Buildings 1
Acreage 0.240
Zoning Other
Parking Spaces 11 spaces
Parking per 1,000 SqFt 1.71
Investment Type Value Add
7 Units in Goleta With Upside | Near UCSB & Walking Distance to Ellwood Beach
Marketing description
Offered for the first time in decades, 431 Ellwood Beach Drive presents a rare opportunity to acquire a seven-unit apartment community in one of Goleta's most desirable coastal neighborhoods, just a few blocks from Ellwood Beach. Comprised of spacious two-bedroom, two-bathroom units, the property generates strong in-place income at a 5.20% current cap rate. Many units feature updated flooring, while two upstairs residences benefit from vaulted ceilings that enhance the sense of space and natural light. Tenants also benefit from off street covered parking and storage. Located just moments from Ellwood Beach, Ellwood Mesa Open Space, UCSB, and Goleta's major employment centers, the property offers an exceptional blend of coastal living and everyday convenience. With its attractive unit layouts, well-maintained condition, and irreplaceable location near the coast, 431 Ellwood Beach Drive represents a rare multifamily investment opportunity in one of Santa Barbara County's most sought-after rental markets.
Investment highlights
- UCSB houses fewer than 40% of its students and just admitted one of its largest classes ever, forcing thousands into the surrounding rental market. The university pledged 5,000 new beds by 2025 and delivered roughly 1,500; the next ~2,200 beds don't arrive until Fall 2027.
- With Isla Vista effectively full and pre-leasing months in advance, demand spills directly into Ellwood. Spacious 2BD/2BA layouts are ideal for shared student tenancy on a per-bed basis, giving an owner a second, higher-density demand pool layered on top of conventional workforce and professional renters.
- The asset currently produces $150,746 in NOI at a 5.20% cap rate, with rent increases only subject to AB 1482. In-place rents average roughly $2,891 per month against a market of approximately $3,193. Closing the gap to allowable and market rents lifts the cap rate to 5.69% (AB 1482 increases) and 6.01% (market) with no repositioning required.
- Units are in average, well-maintained condition. A targeted renovation program — kitchens, bathrooms, fixtures, and finishes — moves rents to the top of the submarket.
- Storage income — seven storage units are currently bundled into tenant rent. Unbundling them, or renting them separately, captures income that is currently being given away.
- Utility recapture (RUBS) — implementing a Ratio Utility Billing System for water, sewer, and refuse shifts a recurring expense back to residents, directly expanding NOI
- At $414,286 per unit and $450 per square foot, 431 Ellwood Beach Drive is priced competitively against the majority of comparable sales, and stands as one of the lowest-basis entry points anywhere in Santa Barbara South County.
- The property sits two blocks from Ellwood Beach and the 230-acre Ellwood Mesa. Miles of bluff-top coastal trail at the doorstep.
- There are three major shopping centers within a mile, Goleta's tech corridor (Raytheon, FLIR, Inogen, AppFolio, and more) within ~1.5 miles, UCSB within three miles, and the Santa Barbara Airport within four. This is a built-out, supply-constrained pocket of coastal Goleta where comparable land and location simply cannot be replicated.
Listing Contacts
Listed by Radius Commercial Real Estate & Investments, Radius Commercial Real Estate & Investments Santa Barbara
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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$150,746.00
$12,562.17/mo
Valuation Metrics
0
DSCR
5.2%
Cap Rate
5.2%
ROI
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