6587 Cervantes Road, Goleta, CA 93117, Goleta, 93117 - 24 bed, 22 bath

About this home

We are pleased to present a rare combined offering in the heart of Isla Vista: a stabilized, fully renovated student housing portfolio seamlessly integrated with an entitled development site. This irreplaceable parcel, located just two blocks from the University of California, Santa Barbara (UCSB), provides a unique solution to one of the most challenging aspects of real estate development carrying costs. Investors can immediately collect substantial income from the existing 22 units, offsetting much or all of the holding expenses typically associated with development. This built-in income hedge mitigates risk, enhances returns, and allows positive cash flow from day one through the entire development timeline. The income-producing portion consists of 22 fully renovated units (48 beds) across two contiguous buildings at 759 Embarcadero Del Mar and 6587 Cervantes Road. Together, the properties total approximately 12,757 square feet of gross building area on 28,560 square feet of allocated lot area. Both properties underwent comprehensive renovations in 2023, including major system replacements, fully remodeled kitchens and bathrooms, in-unit laundry installation, and exterior upgrades. Durable finishes, modern amenities, and professional management creating an operationally stable, turnkey asset ideal for student housing. Adjacent to the multifamily portfolio, 6589 Cervantes Road occupies approximately 15,000 square feet and is entitled for a 27-unit, 22,677 square-foot four-story podium building with 27 on-site parking spaces. The approved unit mix 24 one-bedrooms and 3 two-bedrooms is designed to maximize rent per bed in a market defined by severe undersupply and consistent demand. While fully entitled, the project is not yet Ready-to-Issue (RTI); the buyer will complete the remaining plan check and permitting before construction can begin. McCarthy Companies, a highly experienced regional general contractor, has estimated hard costs at approximately $10.4 million, with total all-in costs (including soft costs, fees, and contingencies) projected at approximately $14.4 million. At pro forma rents of $4,150 for one-bedrooms and $6,500 for two bedrooms, the building is projected to generate an NOI of $1,025,392 and stabilize at a value of $20.5 million (5.00% CAP).