SANTA BARBARA, Calif. - Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today the sale of a newly constructed, single-tenant corporate Starbucks located at 402 North Milpas Street in Santa Barbara, California. The property sold for $3.7 million.
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.
"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 prior to securing this site."
The Starbucks store, which opened in April 2025, features the company's new café-only prototype design, part of Starbucks' strategic initiative to restore café culture and revive the guest experience. The 2,149-square-foot building sits on a 0.26-acre parcel at a high-traffic, signalized intersection with 36,000 cars per day and a Walk Score of 94.
The property is backed by a long-term corporate lease with Starbucks, providing reliable income and investment stability. According to Cox, the combination of the new lease and the prime coastal location offers strong fundamentals and long-term value for the buyer.
Strategically located near Santa Barbara High School and Junior High School (more than 2,700 students combined) and a daytime population of over 135,000 within five miles, the store is designed to cater to remote workers, students and professionals with expanded seating, more power outlets and an inviting ambiance.
Santa Barbara's highly coveted coastal market and dense, affluent demographics (more than 106,000 residents with average household incomes of $169,931 within five miles) further enhance the property's long-term appreciation potential.
Starbucks Corp., the world's largest coffeehouse chain, operates 41,097 stores in 84 countries and plans to expand to 55,000 stores globally by 2030. The company reported consolidated net revenues of $9.5 billion in Q3, a 4% year-over-year increase.
"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 and sought-after asset classes."
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with a $12 billion transaction track record that specializes in the sale of retail properties nationwide. Our expertise, proven track record, and unwavering dedication to putting clients' needs first set us apart in the industry. Hanley Investment Group creates value by delivering exceptional results through the use of property-specific marketing strategies, cutting-edge technology, and local market knowledge. Our nationwide relationships with investors, developers, institutions, franchisees, brokers, and 1031 exchange buyers are unparalleled in the industry, translating into maximum exposure and pricing for each property. With unmatched service, Hanley Investment Group has redefined the experience of selling retail investment properties.
For more information, visit www.hanleyinvestment.com.
Media Contact
Company Name: Hanley Investment Group Real Estate Advisors
Contact Person: Sean Cox, Vice President
Email: Send Email
Phone: 949.244.9335
Address:3500 East Coast Highway, Suite 100
City: Corona del Mar
State: California
Country: United States
Website: https://hanleyinvestmentgroup.com/
