A pair of high-profile commercial buildings in downtown Santa Barbara, formerly occupied by fintech company PayPal, have been purchased by an investor for more than $11.5 million.
The deal, which closed in the fourth quarter of 2025, represents one of the largest commercial real estate transactions on the South Coast for the year.
The adjacent properties, located at 530 Chapala Street and 25 West Cota Street, were sold in a transaction that marks one of only three South Coast commercial sales to exceed $10 million in 2025.
Kristopher Roth and Caitlin Hensel, principals at Hayes Commercial Group, represented the seller in the deal. The buyer and seller were not disclosed.
“Well-located, high-caliber commercial assets in downtown Santa Barbara never go out of style,” said Roth. “Properties that offer this kind of quality, visibility, and long-term viability remain highly sought after.”
The two buildings, which anchor the block between Chapala Street and Fig Avenue, blend historic Santa Barbara character with modern infrastructure. In 2017, both structures were completely rebuilt from the ground up to feature state-of-the-art interiors while carefully preserving their traditional façades.
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530 Chapala St at corner of Cota Street (Photo: Hayes Commerical)
530 Chapala Street, an iconic Spanish Revival building on the corner of Chapala and Cota streets, was previously a tire shop before its conversion into a thoughtfully designed creative office space. The two-story building features approximately 100 feet of frontage on each street, offering significant visibility.
Next door at 25 West Cota Street stands a classic three-story warehouse structure dating back to 1915, originally serving as the Hendry Brothers Blacksmith and Welding Shop. The renovated building offers a mix of office and collaborative spaces, along with modern amenities including an elevator, secure on-site parking, and a rooftop patio with views of the Mesa and Riviera.
Both buildings were most recently occupied by Honey Sciences, which was acquired by PayPal.
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530 Chapala St conference room (Photo: Hayes Commercial)
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Someone sure got an incredible deal on those properties – wow! I would imagine that eventually they will build multiple high-end condos that will be swooped up by those who can afford such properties, and maybe even a penthouse with mountain/coast/ocean/island views.
Speculate away. It’s what you do.
Then again, perhaps someone will make them turn it into “affordable housing”. Gavin style.