Santa Barbara, Calif. (February 15, 2019) – After nearly three decades of visitor exploration and local gatherings at Santa Barbara, California’s landmark outdoor shopping destination, Pacific Retail Capital Partners (PRCP) and J.P. Morgan Asset Management (JPM) announced that Paseo Nuevo will undergo a multimillion-dollar renovation beginning in early 2019.
In November, the City of Santa Barbara’s Historic Landmark Commission (HLC) voted unanimously to approve Paseo Nuevo’s renovation plans, allowing PRCP to launch an exterior refresh of the 458,000 square foot property. HLC Chair, William La Voi, stated that these plans were an “excellent design in both architecture, lighting, and landscape.” The improvements to Paseo Nuevo will provide upgrades to exterior facades, walkways, and landscapes – all reimagined to enhance the Santa Barbara experience while maintaining the unique authenticity of the city’s culture, lifestyle, and Spanish heritage.
“We’re very excited to see a multi-million-dollar investment in the public areas of Paseo Nuevo, a central gathering place for people to shop, dine and spend leisure time downtown,” said Santa Barbara Mayor Cathy Murillo. Santa Barbara City Council members were in agreement, unanimously voting on February 12th to approve the redevelopment plans and allow Paseo Nuevo to proceed with the planned improvements.
This first phase of redevelopment will include revamping specific areas of the center, creating districts within the Paseo Nuevo footprint, and working closely with the Santa Barbara County Office of Arts & Culture to implement a dynamic art program. This art program will commission local artists through permanent installation opportunities, with $200,000 being allocated toward the initiative. Upon completion of these updates, the community will enjoy upgraded shopping and entertainment areas as well as interactive community spaces featuring group games, charging stations, and gathering spots all accompanied by enhanced lighting, water and fire features. Redevelopment efforts will be guided by a sustainable vision in support of Paseo Nuevo’s LEED certification.
The proposed renovations will introduce a new shopping experience, which will allow guests to continue enjoying traditional State Street shopping, while integrating flagship retailers with entertainment, courtyard gathering spaces, dining, and curated art installations. Additionally, Paseo Nuevo’s service-based businesses and al fresco style dining will be prominently featured by linking the innermost part of the center to Chapala Street restaurants and retail stores.
Paseo Nuevo Management (PRCP & JPM) have also committed an additional $200,000 to identify supportive solutions for Santa Barbara’s homeless population. Through this contribution, PRCP will support the city, in its efforts to distribute these funds and keep Paseo Nuevo at the center of a thriving downtown.
“Representing 1/3 of the retail and restaurant gross leasable area of downtown, Paseo Nuevo is the city’s top destination for commerce, community and culture,” said Brian Okrent, Executive Director, Real Estate Americas, at J.P. Morgan Asset Management. “The acquisition of the former Macy’s building last year and the announcement of this renovation further solidifies our commitment to this community.”
“Paseo Nuevo’s location in the heart of downtown, its beautiful architectural representation of Santa Barbara and the outdoor lifestyle it reflects of its community, is why Paseo Nuevo is the crown jewel of the Pacific Retail portfolio.” said Najla Kayyem, Senior Vice President, Pacific Retail Capital Partners.
The newly appointed Ortega Building—previously home to Macy’s—will be repurposed in the next phase of the ongoing reinvestment into the larger Paseo Nuevo property by its ownership. Planning for the integration of the Ortega Building will happen over time with consideration from community input and policy makers, starting with an online survey available at surveymonkey.com/r/PaseoNuevo. This adaptive reuse project will transform the former department store into a vibrant complex supporting community and commerce.
Santa Barbara is host to over 7 million visitors annually who spend close to $2 billion a year. This is in addition to the significant retail, culinary, and entertainment dollars spent by its residents and the 13,000+ jobs these industries support. At a time when the City of Santa Barbara is reimagining the State Street corridor, the core of Santa Barbara’s retail and entertainment industry, Paseo Nuevo is excited to spearhead the creation of a new, flourishing economic center in the heart of State Street. The changes envisioned by Paseo Nuevo are certain to enhance the positive experiences that residents and visitors alike will share as Santa Barbara finds ways to offer even more in its community.
About Paseo Nuevo
Paseo Nuevo is the Central Coast’s most distinctive collection of unique, stylish retailers between Los Angeles and San Francisco. The LEED certified center is located in the heart of downtown Santa Barbara—an international mecca for those seeking luxurious surf, serenity, sun and shopping. Opened in 1990, the center is anchored by Nordstrom and presented in a charming, open-air Spanish setting, Paseo Nuevo features 154,900 square feet of specialty retailers and restaurants like Eureka! Burgers, Sephora, Saje, Lush, Victoria’s Secret, Aveda, Lorna Jane and others.
To learn more about Paseo Nuevo visit PaseoNuevoShopping.com or follow updates on social media: Facebook, Twitter and Instagram: @ShopPaseoNuevo
About Pacific Retail Capital Partners
Pacific Retail Capital Partners (PRCP) is one of the nation’s premier retail operating groups of large open- air and enclosed shopping centers, with more than $1.5 billion in retail assets presently under management in the United States. Based in Southern California, PRCP provides end-to-end sourcing, assessment, underwriting, valuing, developing, and asset management of retail real estate with a proven track record of repositioning properties. PRCP strategically manages over 10+ million square feet of retail destinations. The executive team has over 150 years of collective real estate expertise in leasing, marketing, operations, design, development, investment, and finance. With a keen focus on enhancing the value and quality of its growing portfolio, PRCP is dedicated to creating a unique, strategic vision for each property and exceeding the highest expectations of retail investors, retailers, and consumers.
To learn more visit pacificretail.com or follow social media at: Facebook: @PacificRetailCapitalPartners and Instagram: @PacificRetail
About J.P. Morgan Global Alternatives
J.P. Morgan Global Alternatives is the alternative investment arm of J.P. Morgan Asset Management. With more than $130 billion in assets under management and over 800 professionals (as of March 31, 2018), we offer strategies across the alternative investment spectrum including real estate, private equity and credit, infrastructure, transportation, liquid alternatives, and hedge funds. Operating
from 23 offices throughout the Americas, Europe and Asia Pacific, our independent alternative investment engines combine specialist knowledge and singular focus with the global reach, vast resources and powerful infrastructure of J.P. Morgan to help meet each client’s specific objectives. For more information visit jpmorganassetmanagement.com.