Bei-Scott Properties is Selling a Santa Cruz Retail Asset, Seeking $12.1MM

1214 Soquel Avenue Santa Cruz, Seabright Plaza Shopping Center, Bei-Scott Properties
Photo by Ian Mackey on Unsplash

By Jon Peterson

While the retail sector has experienced a shock over the last couple of years, there are signs that the worst of it has come to pass. The local ownership of the Seabright Plaza Shopping Center in Santa Cruz, Bei-Scott Properties, is one group that sees this as an opportunity to sell a fully-leased retail center in the coastal city, and it is asking $12.1 million for the asset, according to the property’s marketing materials.

The seller has owned the property for a very long time, and some of its investment partners are driving the decision to place the asset on the market. The listing agent on the sale is Tom Nelson, a senior vice president with Colliers. He works out of the company’s Silicon Valley office and also operates out of his own office located in Santa Cruz.

The shopping center is located at 1214 Soquel Avenue, along the city’s retail and small industrial uses. The property totals 28,392 square feet and covers 1.42 acres of land. The property is 100 percent occupied at this time, and it has been a very strong performer even though the pandemic. There may even be room for the rents to be increased in the future by the new ownership.

One of the main tenants in the property is The Bagelry, a bagel bakery retail operation considered a local institution since the store first opened in 1977. Other significant tenants are Hart’s Fabric, Real Thai Kitchen and Santa Cruz Ace Hardware. Most of the tenants have been in the shopping center for a long time and have kept the occupancy in the property at a high level.

The potential new owner of the property would likely need to have very patient capital to make any changes to the property in the future. There is some long-term value-add development potential with the property, as well. The shopping center is located in an area that could allow the property to be turned into a high-density mixed-use development. A portion of the property could be developed into a residential asset at some point in the future, although the property would have to go through extensive planning and entitlement changes.

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