Kellogg Square, a neighborhood business center in Old Town Goleta, was sold to an Los Angeles-based real estate firm called AJR Capital Group LLC for $11.3 million.
The sale was announced on Monday and facilitated by Colliers, a local commercial real estate agency. Currently, the lot contains a variety of businesses including Goleta Floral, The Imperial Cocktail Bar and Trek Bicycle.
Under new ownership, the plan is for Kellogg Square to remain a retail center, according to a press release from Colliers.
Pertaining to the addresses 5555-5585 Hollister Avenue, Kellogg is bordered by Highway 217 and S. Kellogg Avenue. According to the press release, the “desirable” location combines a strategic location with an established base of tenants nearby.
“Kellogg Square represents a highly desirable neighborhood retail investment in one of Southern California’s most sought-after coastal markets,” said Colliers Executive Vice President Austin Herlihy in the press release.
The square has historic value, according to Leanne Daly, communications manager for Colliers, as one of the most recognizable retail landmarks in Old Town Goleta. It has housed local businesses for decades.
“Situated in the heart of Old Town, Kellogg Square has been a community fixture along Hollister Avenue for decades,” said Daly in an email to the News-Press.
Several new housing projects are under way in Goleta, resulting in a projected influx of new tenants for the years to come. Developers such as City Ventures have been targeting “opportunity sites” for residential communities as the city of Goleta attempts to make progress toward meeting its housing element.
As the city sees thousands of new residential units to meet the housing demand, Old Town Goleta is experiencing a “dramatic shift,” the press release states.
“This transaction represents the catalyst Old Town Goleta has been waiting for,” Herlihy said, “This specific asset sits right at the center of that growth, bridging the gap between new housing and the cutting-edge commercial infrastructure driving our local economy.”
Such an opportunity to provide retail opportunities to a growing housing market is what attracted investors.
Colliers brokered the transition, advised by Vice President Miles Waters, Vice President Chris Parker, Herlihy, and Associate Mike Chung, who represented AJR Capital Group. The seller remained undisclosed in the press release.
