Aerial imagery: Google
Confidential Broker Opinion of Value
124 Oceano Ave
Santa Barbara, CA 93109
Fully Renovated 7-Unit Coastal Multifamily | Delivered Vacant
7Units
±5,825Square Feet
c. 1965Year Built (Est.)
2026Renovated
0.21Acres
Logan Ward
Logan Ward
Associate
Glen Scher
Glen Scher
Senior Managing Director Investments
Filip Niculete
Filip Niculete
Senior Managing Director Investments

Prepared Exclusively for Oceano Enterprises LLC

June 2026

Team Track Record
LA Apartment Advisors at Marcus & Millichap
LAAA Team of Marcus & Millichap Expertise, Execution, Excellence.
465Closed Transactions
$1.47BTotal Sales Volume
4,216Units Sold
34Median DOM
LAAA Closings Map

"We Didn't Invent Great Service, We Just Work Relentlessly to Provide It."

The LAAA Team has closed 465 transactions totaling $1.47B across 4,216 units, and the Central Coast is an active part of that record. Recent closings include a 32-unit Ojai portfolio at $8.25M in December 2025, an 8-unit Ventura sale in 2024, a 7-unit Goleta sale at $635,000 per unit, and an 18-unit Oxnard asset our team has now sold twice, most recently in May 2025.

We know this exact market. The team has sold 318 S Voluntario St in Santa Barbara twice and brought 30+ Santa Barbara and Ventura County valuation assignments through the same underwriting discipline behind this report. We are currently marketing 180 Holly Ave, a 19-unit Carpinteria asset listed at $8.95M, and a development site in Ojai.

What we add on Oceano Ave is buyer depth. A Santa Barbara listing marketed only to Santa Barbara buyers leaves money on the table. Our database of 30,000+ investors and a buyer pool that runs 61% 1031 exchangors puts Los Angeles and exchange capital into the bidding alongside the local families who know what the Mesa is worth.

Active on the Central Coast

PropertyCityUnitsOutcome
514-516 E Oak St & 601 Grand AveOjai32Sold 12/2025 | $8,250,000
1200 N H StOxnard18Sold twice by LAAA, most recently 05/2025
40 N Brent StVentura8Sold 02/2024 | $2,487,000
318 S Voluntario StSanta Barbara8Sold twice by LAAA (2019 and 2021)
6839 Sabado Tarde RdGoleta7Sold 2021 | $635,000 per unit
627 E Virginia TerraceSanta Paula7Sold 2020
180 Holly AveCarpinteria19Active listing | $8,950,000
601 Pearl StOjai--Active listing | development site
Our Team
#1 Most Active Multifamily Sales Team in LA County
CoStar • 2019, 2020, 2021 • #4 in California
Glen Scher
Glen Scher
Senior Managing Director
Glen Scher is one of the top multifamily brokers in Los Angeles, with over 450 transactions and $1.4 billion in closed sales across LA and the Ventura and Santa Barbara counties. He is a Senior Managing Director at Marcus & Millichap and co-founder of the LAAA Team, one of Southern California's most active multifamily brokerage groups, consistently closing 40+ deals per year. Chairman's Club, 2021.
Filip Niculete
Filip Niculete
Senior Managing Director
Filip Niculete is one of Southern California's top commercial real estate brokers. Born in Romania and raised in the San Fernando Valley, he studied Finance at San Diego State and began his career at Marcus & Millichap in 2011. He co-founded the LAAA Team, which leads the market in multifamily inventory, and has closed over $1.4 billion in transactions. Chairman's Club, 2021 and 2018.
Aida Memary Scher
Aida Memary Scher
Associate
Morgan Wetmore
Morgan Wetmore
Associate
Luka Leader
Luka Leader
Associate
Logan Ward
Logan Ward
Associate
Alexandro Tapia
Alexandro Tapia
Associate
Blake Lewitt
Blake Lewitt
Associate
Mike Palade
Mike Palade
Associate
Tony H. Dang
Tony H. Dang
Associate
Key Achievements

• Chairman's Club - a top-tier annual honor at Marcus & Millichap
• National Achievement Award - Consistent top national performer
• CoStar #1 Team - Most active multifamily sales team in LA County
• 465 Transactions - $1.47 billion in career sales volume
• 34-Day Median DOM - Properties sell faster than market average

As Featured In
Our Marketing Approach & Results
Data-Driven Marketing + Proven Performance
30K+Targeted Emails
10K+Listing Views
3.7Avg Offers / Listing
18Avg Days to Escrow
"We are PROACTIVE marketers, not reactive. Every listing gets a custom campaign designed to maximize exposure, create urgency, and drive competitive offers."

Direct Phone Outreach

  • 500+ targeted calls per listing
  • Focus: active buyers in submarket
  • Personal follow-up within 48 hours

Email Campaigns

  • 30,000+ qualified investor contacts
  • Segmented by geography and deal size
  • Multi-touch drip campaigns

Online Platforms

  • MarcusMillichap.com, CoStar, Crexi
  • LoopNet, CREXi, Ten-X
  • Custom property websites

Additional Channels

  • Office-wide agent blast (100+ agents)
  • Industry networking events
  • Strategic broker co-marketing
97.6%Avg SP/LP Ratio
21%Sold Above Ask
10Avg Day Contingency
61%1031 Exchange Buyers

Pricing Accuracy

  • 97.6% average sale-to-list ratio
  • 21% of listings sold above asking
  • Data-driven comp analysis

Marketing Speed

  • 18 average days to accepted offer
  • 34-day median days on market
  • Strategic pricing drives urgency

Contract Strength

  • 10-day average contingency period
  • Pre-qualified buyer verification
  • Streamlined due diligence process
  • 98% close rate on accepted offers

Exchange Expertise

  • 61% of buyers are 1031 exchangers
  • Dedicated exchange buyer database
  • Timeline management expertise
  • 85% higher cash flow for exchangers
Advertised On CREXI COSTAR LOOPNET ZILLOW REALTOR M&M APARTMENTS.COM REDFIN TEN-X
Investment Overview
The Mesa - 124 Oceano Ave
7Units
5,825Square Feet
c. 1965Year Built (Est.)
2026Renovated

The LAAA Team of Marcus & Millichap is pleased to present 124 Oceano Ave, a fully renovated 7-unit multifamily asset on Santa Barbara's Mesa, one row from Leadbetter Beach and adjacent to Santa Barbara City College. The property consists of six 2-bedroom/2-bath units and one 1-bedroom/1-bath unit and will be delivered 100% vacant upon completion of a comprehensive stud-level renovation.

Delivered vacant, the building lets a buyer set day-one market rents under Costa-Hawkins with no inherited tenancies, estoppels, or legacy rent schedules. Pro forma gross scheduled rent is $348,840 at rents validated by the oceanfront Sea Cliff Apartments on the same street, and a lean operating profile holds expenses near 29% of income, a conversion of gross rent to NOI that older stabilized buildings cannot match.

Santa Barbara's permanent rent stabilization program is targeted for 2027. A renovated building delivered vacant today gives the buyer full market rents in place before the program arrives, while coastal zoning keeps competing new supply near zero. The two most relevant sales of this cycle both closed on Oceano Ave, led by the $21.15M Sea Cliff Apartments trade at an approximate 4.75% cap.

Property

Investment Highlights

  • Delivered 100% Vacant - All seven units delivered empty at close. The buyer sets day-one market rents under Costa-Hawkins vacancy decontrol with no inherited tenancies or legacy rent schedules.
  • Gut-Renovated 2026 - Comprehensive stud-level renovation completing in 2026 with new flooring, paint, kitchens, baths, and finishes. Minimal near-term repairs and a clean insurance and financing story.
  • One Row from Leadbetter Beach - Mesa location a half block from the sand, adjacent to Santa Barbara City College and the Great Meadow, minutes to the harbor and downtown.
  • Same-Street Trophy Comp - Sea Cliff Apartments at 20-80 Oceano Ave traded in February 2025 for $21.15M at an approximate 4.75% cap and $729,310 per unit. The subject prices just inside the on-the-sand benchmark.
  • 4.81% Pro Forma Cap at List - Year 1 stabilized NOI of $240,464 at the $4,995,000 list price, with property taxes fully reassessed at Santa Barbara's 1.05% rate.
  • Lean 29% Expense Load - Tenant-paid in-unit utilities, no elevator or pool, and all-new systems hold operating expenses near 29% of income.
Location Overview
The Mesa - CA 93109
124 Oceano Ave aerial, one row from Leadbetter Beach

124 Oceano Ave (outlined) one row from Leadbetter Beach, directly below Santa Barbara City College and the Great Meadow. Aerial imagery: Google.

The Mesa is Santa Barbara's coastal shelf, a low-density residential neighborhood set on the bluffs between the harbor and Arroyo Burro. 124 Oceano Ave sits at the eastern edge of the Mesa, one row back from Leadbetter Beach, with the sand, the point breaks, and Shoreline Park all inside a five-minute walk.

Santa Barbara City College borders the property directly to the north, with the Great Meadow and La Playa Stadium between the building and the ocean. A campus of roughly 25,000 enrolled students next to a beach generates permanent rental demand at every price point, and the harbor, the Funk Zone, and downtown State Street are all within a few minutes' drive.

Supply is the other half of the story. The parcel sits inside the city's Coastal Overlay zone, where new multifamily entitlement is slow, expensive, and rare. Competing renovated product on the Mesa is effectively limited to what already exists, which is why the few buildings that trade here command the county's premium pricing.

Location Details
Leadbetter Beach1 block
Santa Barbara City CollegeAdjacent
Shoreline Park0.4 miles
Santa Barbara Harbor0.7 miles
The Funk Zone1.5 miles
Downtown / State Street2 miles
ZoningR-2, Coastal Overlay (S-D-3)
Bike Score68 / Bikeable
Location Map
The Renovation
Stud-Level Rebuild | Delivered Renovated & 100% Vacant

The building is undergoing a comprehensive stud-level renovation completing in 2026. Interiors are being rebuilt with new flooring, paint, kitchens, baths, and finishes throughout, and the property will be delivered fully renovated and 100% vacant at close. The photos below show the current progression; final finished photography will follow completion.

Building exterior Renovated living room Renovated bedroom Renovated interior

The Delivered-Vacant Advantage

Buyer Verification
Renovation scope, permits, and final unit square footages are per ownership and should be independently verified during due diligence.
Property Details
124 Oceano Ave, Santa Barbara, CA 93109
Property Overview
Address124 Oceano Ave, Santa Barbara, CA 93109
APN045-230-003
Units7 (six 2BD/2BA, one 1BD/1BA)
Building SF±5,825 SF (per owner plans; buyer to verify)
Lot Size9,147 SF (0.21 acres)
Stories2
Year BuiltCirca 1965, estimated (not on county record; consistent with comparable Oceano Ave multifamily built 1961-1965)
ConditionFully renovated 2026 (stud-level)
Occupancy at Delivery100% vacant
Site & Zoning
ZoningR-2 (City of Santa Barbara)
OverlayS-D-3 Coastal Overlay (SBMC 28.44)
Coastal JurisdictionCity permit area, non-appealable zone
SubdivisionGranthurst, Lot 2
Opportunity ZoneNo
Hazard FlagsNone present per parcel report
Building Systems & Capital Improvements
ConstructionWood frame with stucco exterior
RenovationStud-level renovation completing 2026; all-new interiors and finishes
ParkingOff-street, including covered tuck-under (buyer to verify count)
LaundryOn-site (final configuration to be confirmed)
MeteringIndividual gas and electric assumed; buyer to verify
Regulatory & Compliance
State Rent CapsCA AB 1482 applies
Local OrdinanceCity of Santa Barbara just cause (SBMC 26.50)
Local Rent ProgramPermanent rent stabilization in process, targeted 2027
Initial RentsDelivered vacant; buyer sets market rents at lease-up (Costa-Hawkins)
Opportunity ZoneNo
Buyer Profile & Anticipated Objections
Target Investors & Data-Backed Responses

Target Buyer Profile

Coastal Legacy Capital

Santa Barbara family offices and long-term private owners who hold Mesa assets for decades. A renovated, vacant building with no tenant baggage is exactly what this buyer waits years for.

1031 Exchange Buyers

61% of LAAA buyers are exchangors. A delivered-vacant, fully renovated coastal asset with day-one market rents is a clean upleg with no deferred-maintenance risk on a fixed timeline.

SBCC Demand Investors

Operators who underwrite the permanent rental demand of an adjacent college campus and a beach one row away. Vacancy on the Mesa is a lease-up timeline, not a market risk.

From legacy coastal capital to exchange buyers on a clock, 124 Oceano Ave offers what almost never reaches this market: a renovated, vacant, beach-block building with day-one market economics.

Anticipated Buyer Objections

"Why pay a sub-5% cap?"

Sea Cliff Apartments traded at an approximate 4.75% cap on the sand a half block away in February 2025. The subject at 4.81% prices slightly cheaper than the trophy benchmark while delivering brand-new product, and matching Sea Cliff's cap would imply roughly $5.05M.

"Are the pro forma rents real?"

Sea Cliff's own long-term market rents are $4,300 for 2-bedroom units and $3,750 for 1-bedrooms, oceanfront. The subject is underwritten at $4,295 and $3,200, at or below the on-the-sand evidence, and the renovated Sea Crest 1-bedroom on the same street asks $2,950. The subject's own unit leased at $3,500 in dated condition in July 2025.

"What about rent control?"

The building is delivered vacant, so the buyer sets initial rents at full market under Costa-Hawkins. AB 1482 then caps annual increases. The city's permanent rent program, targeted for 2027, regulates future increases, not the going-in rents a vacant building lets you set today.

Property
Comparable Sales
Closed Multifamily Transactions
Sale Comps Map
#AddressUnitsYearSFPrice$/Unit$/SFCapGRMDateDOM
1Sea Cliff Apartments, 20-80 Oceano Ave29--34,865$21,150,000$729,310$6074.75%11.9x02/2025--
2330 Oceano Ave519654,298$2,950,000$590,000$686----11/2024--
Average$12,050,000$659,655$6464.75%11.9x--
Median$12,050,000$659,655$6464.75%11.9x--
Tier 1 Average$659,655$6464.75%11.9x

1. Sea Cliff Apartments, 20-80 Oceano Ave (Oceanfront). The 29-unit Sea Cliff Apartments traded in February 2025 for $21,150,000, or $729,310 per unit, after being offered at $25M. On the income in its offering, which included nine short-term vacation rentals, the closing price reflects an approximate 4.75% cap and a 12 GRM. Sea Cliff sits on the sand overlooking Leadbetter Beach, a half block from the subject, and it is the benchmark this pricing is built against: matching its 4.75% cap implies roughly $5,050,000 for the subject, so the list price asks slightly more cap for a location one row back. Its offering also carried long-term market rents of $4,300 for 2-bedroom units and $3,750 for 1-bedrooms, direct support for the subject's pro forma.

2. 330 Oceano Ave. Three blocks up the same street, this 5-unit 1965 building sold in November 2024 for $2,950,000, or $590,000 per unit, after a hold of more than 20 years and with original-condition interiors. It is the unrenovated floor for the street: an older, smaller building with no renovation story still commanded $590,000 per unit, which frames the premium a fully renovated, delivered-vacant building earns above it.

Rent Comparables
Active Rental Listings in Submarket
Rent Comps Map
#AddressTypeSFRent$/SFSource
1Sea Cliff Apartments, 20-80 Oceano Ave2BD/1BA--$4,300--Sea Cliff OM market rent (oceanfront)
2Sea Cliff Apartments, 20-80 Oceano Ave1BD/1BA--$3,750--Sea Cliff OM market rent (oceanfront)
3Sea Crest Apartments, 100 Oceano Ave1BD/1BA780$2,950$3.78Zumper (renovated)
4868 Highland Dr2BD/1.5BA1,083$3,800$3.51Apartment List (gut-renovated)
51021 Cliff Dr2BD/2BA1,090$4,995$4.58Renovated, ocean view
6124 Oceano Ave (subject, pre-renovation)2BD/2BA850$3,500$4.12Leased 07/2025, dated condition
Financial Analysis
Investment Underwriting

Unit Mix & Rent Roll

UnitTypeSFRent/MoRent/SFStatusNotes
12BD/2BA900$4,395$4.88Delivered VacantLarger plan (±900 SF)
22BD/2BA850$4,295$5.05Delivered VacantPro forma at delivery
31BD/1BA675$3,200$4.74Delivered VacantPro forma at delivery
42BD/2BA850$4,295$5.05Delivered VacantPro forma at delivery
52BD/2BA850$4,295$5.05Delivered VacantPro forma at delivery
62BD/2BA850$4,295$5.05Delivered VacantPro forma at delivery
72BD/2BA850$4,295$5.05Delivered VacantPro forma at delivery
Total7 Units5,825$29,070$4.99$348,840/yr

Operating Statement

IncomeAnnualPer Unit$/SF% EGI
Gross Scheduled Rent$348,840$49,834$59.89 -
Less: Vacancy (3%)$(10,465)$(1,495)$(1.80) -
Other Income [7]$2,000$286$0.34 -
Effective Gross Income$340,375$48,625$58.43100.0%
ExpensesAnnualPer Unit$/SF% EGI
Real Estate Taxes [1]$52,719$7,531$9.0515.5%
Insurance [2]$12,000$1,714$2.063.5%
Water & Sewer [3]$5,200$743$0.891.5%
Trash [3]$2,450$350$0.420.7%
Common Area Electric [4]$1,500$214$0.260.4%
Repairs & Maintenance [5]$4,200$600$0.721.2%
Contract Services$1,750$250$0.300.5%
Administrative$1,000$143$0.170.3%
Management Fee [6]$17,442$2,492$2.995.1%
Replacement Reserves$1,400$200$0.240.4%
Miscellaneous$250$36$0.040.1%
Total Expenses$99,911$14,273$17.1529.4%
Net Operating Income$240,464$34,352$41.2870.6%

Notes to Operating Statement

[1] Real Estate Taxes: Buyer Year 1 tax reassessed at the list price. Santa Barbara TRA 002-001 ad valorem rate of 1.05404% plus $69.99 in flat direct assessments, verified from the current county tax bill.

[2] Insurance: Owner-provided coastal market estimate for the renovated building.

[3] Utilities: Owner pays water, sewer, and trash. In-unit gas and electric are tenant-paid on individual meters (assumed post-renovation; buyer to verify).

[4] Common Area Electric: Exterior and common lighting.

[5] Repairs & Maintenance: Low end of market range, reflecting the stud-level renovation and all-new finishes.

[6] Management Fee: 5% of gross scheduled rent.

[7] Other Income: Laundry and storage income estimate.

Summary
OPERATING DATA
Price$4,995,000
Down Payment (47%)$2,363,654
Number of Units7
Price / Unit$713,571
Price / SF$858
Gross SF5,825
Lot Size9,147 SF (0.21 ac)
Year Built (Est.)c. 1965
Renovated2026
ReturnsReassessed
Cap Rate4.81%
GRM14.32x
Cash-on-Cash2.03%
DSCR1.25x
FINANCING
Loan Amount$2,631,346
Loan TypeFixed
Interest Rate6.15%
Amortization30 Years
Loan Constant7.31%
LTV (DCR)52.7%
DSCR1.25x
IncomeReassessed
GSR$348,840
Vacancy (3%)$(10,465)
Other Income$2,000
EGI$340,375
Cash FlowReassessed
NOI$240,464
Debt Service$(192,371)
Net Cash Flow$48,093
CoC Return2.03%
Principal Reduction$31,419
Total Return3.36%
EXPENSES
Real Estate Taxes$52,719
Insurance$12,000
Water & Sewer$5,200
Trash$2,450
Common Area Electric$1,500
Repairs & Maintenance$4,200
Contract Services$1,750
Administrative$1,000
Management Fee$17,442
Replacement Reserves$1,400
Miscellaneous$250
Total Expenses$99,911
Suggested List Price
$4,995,000
$713,571Price / Unit
$858Price / SF
4.81%Current Cap Rate
14.32xCurrent GRM

Pricing Matrix

Purchase PriceCap RateCash-on-Cash$/Unit$/SFGRMDSCR
$5,370,0004.40%1.70%$767,143$92215.39x1.25x
$5,295,0004.48%1.76%$756,429$90915.18x1.25x
$5,220,0004.56%1.82%$745,714$89614.96x1.25x
$5,145,0004.64%1.89%$735,000$88314.75x1.25x
$5,070,0004.73%1.96%$724,286$87014.53x1.25x
$4,995,0004.81%2.03%$713,571$85814.32x1.25x
$4,920,0004.90%2.12%$702,857$84514.10x1.25x
$4,845,0005.00%2.20%$692,143$83213.89x1.25x
$4,770,0005.09%2.38%$681,429$81913.67x1.27x
$4,695,0005.19%2.60%$670,714$80613.46x1.29x
$4,620,0005.29%2.82%$660,000$79313.24x1.32x
A TRADE PRICE IN THE CURRENT INVESTMENT ENVIRONMENT OF
$4,750,000 to $4,995,000

Pricing Rationale

The $4,995,000 list price is anchored to the only two relevant trades of this cycle, both on the subject's own street. Sea Cliff Apartments closed in February 2025 at an approximate 4.75% cap and $729,310 per unit on the sand; pricing the subject at Sea Cliff's exact cap would imply roughly $5,050,000, so the list asks a slightly higher cap for a location one row back. The unrenovated 330 Oceano print at $590,000 per unit defines the floor a renovated, vacant building clears. At list, the subject shows a 4.81% pro forma cap on Year 1 NOI of $240,464 with property taxes fully reassessed, $713,571 per unit, and a 14.3 GRM whose spread to Sea Cliff's 12 reflects a 29% expense ratio against the trophy's roughly 40%. Sales from November 2024 through February 2025 frame the range, and we expect a trade between $4,750,000 and $4,995,000.

Assumptions & Conditions: This analysis is based on information provided by ownership and third-party sources deemed reliable. Building and unit square footages are per owner plans and subject to verification. Year built is estimated; the county assessor does not publish a construction year for this parcel, and the estimate reflects the vintage of comparable Oceano Ave multifamily. Operating figures are presented pro forma at delivery of a fully renovated, vacant building; individual utility metering is assumed pending confirmation. Buyer should independently verify all information during due diligence. Pro forma projections are estimates and not guaranteed.
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