New Starbucks Café-Only Prototype Building on Milpas Sells for $3.7 Million

A newly constructed, single-tenant corporate Starbucks at 402 North Milpas Street in Santa Barbara, California, sold for $3.7 million.

Real estate brokerage and advisory firm Hanley Investment Group Real Estate Advisors arranged the deal.

Hanley Investment Group’s Vice President Sean Cox and Executive Vice President Bill Asher represented the seller, a Los Angeles-based developer.  The buyer, a San Francisco-based 1031 exchange investor, represented themselves in the transaction, the firm said in a statement.

“We generated multiple offers and secured a buyer who owned other investment properties in the Santa Barbara trade area,” said Cox. “We achieved record pricing for a non-drive-thru Starbucks format in a high-barrier-to-entry location. Starbucks had been seeking a new store in this corridor of Santa Barbara for approximately five years before securing this site.”

Formerly a 7-Eleven, Starbucks opened in this location in April 2025 and features the company’s new cafe-only prototype, designed to emphasize in-store seating and customer experience. The 2,149-square-foot building occupies a 0.26-acre parcel at a busy signalized intersection.

“Investor demand for newly constructed, single-tenant net lease retail assets backed by high-credit tenants in prime locations remains strong,” said Asher. “In today’s market, buyers continue to prioritize stability, long-term income, and minimal management responsibilities — making net lease retail one of the most resilient asset classes.”

Located near Santa Barbara High and Junior High Schools, which together enroll over 2,700 students, and a daytime population exceeding 135,000 within five miles, the store serves remote workers, students, and professionals with expanded seating, additional power outlets, and a welcoming atmosphere.

Starbucks Corporation, the world’s largest coffeehouse chain, operates 40,789 stores across 84 countries. However, this week the coffee corporation announced it will cut 900 jobs and close some about 1% of its stores, approximately 200 locations. Following the closure, Starbucks plans to invest in new store openings and renovations.

According to NPR, the chain is looking to remove almost a third of the menu options, have drinks ready in four minutes or less, offer no upcharges for nondairy milks, and a store redesign to encourage people to stay along with ceramic mugs and free refills on coffee or tea.

An unofficial list circulated by USA Today shows a location on Higuera Street in San Luis Obispo, a location at Broadway and McCoy in Santa Maria, another location in Cannery Row in Monterey, and another one on John Street in Salinas. Starbucks has stated their app will reflect location changes by Sunday.

While the total list of affected Starbucks locations on the Central Coast has not been confirmed, there’s potential this newer location on Milpas Street might serve as a model for other locations nationwide.