{"id":1764,"date":"2016-07-19T14:16:24","date_gmt":"2016-07-19T21:16:24","guid":{"rendered":"https:\/\/www.lee-associates.com\/centralcoast\/?p=392"},"modified":"2016-07-19T14:16:24","modified_gmt":"2016-07-19T21:16:24","slug":"globest-com-how-the-funk-zone-became-a-retail-goldmine","status":"publish","type":"post","link":"https:\/\/www.lee-associates.com\/centralca\/2016\/07\/19\/globest-com-how-the-funk-zone-became-a-retail-goldmine\/","title":{"rendered":"GlobeSt.com: How The Funk Zone Became A Retail Goldmine"},"content":{"rendered":"<h2 class=\"article-title\"><a href=\"http:\/\/NTA BARBARA\u2014\u201cIt is the center of the universe right now,\u201d Clarice Clarke, the president of Lee &amp; Associates Central Coast office, says about the Funk Zone, a submarket of Santa Barbara that runs from the ocean to the freeway. The neighborhood is booming, with thriving retail and loads of new development, including high-end condo complexes and hotels. It is akin to the revolution happening in Downtown Los Angeles, but is also pulling demand away from historically popular Santa Barbara submarkets, like State Street, in a way that Downtown Los Angeles hasn\u2019t been quite able to pull off yet. \u201cThe Funk Zone is a great example of repurposing, and it is really an interesting phenomenon. It used to be fish processing plants and wood working studios, and all kinds of industrial uses,\u201d Clarke tells GlobeSt.com. \u201cBeacon\u2019s Moving and Storage building was one thing that started the transformation of the area. It was right on the railroad tracks, and we sold it to a buyer that flipped it to a local investor that bought some other key pieces in the Funk Zone. That really started a whole revolution down there.\u201d While Downtown Los Angeles had the adaptive reuse ordinance, which helped to catapult development in the submarket, zoning in the Funk Zone is much more of an obstacle. It was formerly an industrial market, and the city has kept the zoning regulations pretty strict. \u201cThe market has very challenging zoning, even today,\u201d says Clarke. \u201cIt is in the coastal zone, and any property has to be ocean-related commercial and tourist serving. Some parts of the area have a housing overlay, and that is it.\u201d Clarke and her partner Steve Leider, a principal in Lee &amp; Associates Central Coast, are well aware of the zoning struggles in the market. The duo attempted to buy a building in the Funk Zone more than a decade ago. \u201cWe were going to put our office in the back and rent out the retail space, but when we went to the city, they said no office,\u201d says Leider. While there is little office space in the market, interesting and boutique retail concepts have exploded. The Lark is perhaps the most noteworthy of a handful of high-volume restaurants flanked by wine tasting rooms. There are also two high-end condo developments under construction. Those units will carry price tags starting at $3 million once complete. \u201cThe biggest thing that you will see down there is the redevelopment of La Entrada, which encompasses three corners,\u201d says Clarke. \u201cMichael Rosenfeld, the developer, is building a new hotel with retail across the street and a parking garage on the opposite corner.\u201d Much of this development will come on line in the next few years, and will unveil the next evolution in the market; however, Clarke points to a number of untouched industrial facilities and lots that have yet to join the movement. Some owners are holding out for higher prices,\u201d she explains, adding that they will sell, eventually. With those lots, which are substantial in number, the Funk Zone has plenty of development runway left.\">How The Funk Zone Became A Retail Goldmine<\/a><\/h2>\n<p class=\"article-byline\">JULY 19, 2016<\/p>\n<p class=\"article-abstract\">SANTA BARBARA\u2014With a hotel development underway and plenty of old industrial to make-over, the Funk Zone, Santa Barbara\u2019s emerging retail destination, is just getting started, Clarice Clarke of Lee &amp; Associates says in this EXCLUSIVE interview.<\/p>\n<p class=\"first-p\">\u201cIt is the center of the universe right now,\u201d <b>Clarice Clarke<\/b>, the president of <b>Lee &amp; Associates Central Coast<\/b> office, says about the Funk Zone, a submarket of Santa Barbara that runs from the ocean to the freeway. The neighborhood is booming, with thriving retail and loads of new development, including high-end condo complexes and hotels. It is akin to the revolution happening in Dow<a href=\"http:\/\/www.globest.com\/sites\/kelsimareeborland\/2016\/07\/19\/how-the-funk-zone-became-a-retail-goldmine\/?channel=contributors\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-393\" src=\"https:\/\/www.lee-associates.com\/centralcoast\/wp-content\/uploads\/sites\/15\/2016\/07\/globe-image-for-funk-zone-1024x796.jpg\" alt=\"globe image for funk zone\" width=\"400\" height=\"311\" \/><\/a>ntown Los Angeles, but is also pulling demand away from historically popular Santa Barbara submarkets, <b>like State Street<\/b>, in a way that Downtown Los Angeles hasn\u2019t been quite able to pull off yet.<\/p>\n<p>\u201cThe Funk Zone is a great example of repurposing, and it is really an interesting phenomenon. It used to be fish processing plants and wood working studios, and all kinds of industrial uses,\u201d Clarke tells GlobeSt.com. \u201cBeacon\u2019s Moving and Storage building was one thing that started the transformation of the area. It was right on the railroad tracks, and we sold it to a buyer that flipped it to a local investor that bought some other key pieces in the Funk Zone. That really started a whole revolution down there.\u201d<\/p>\n<p>While Downtown Los Angeles had the adaptive reuse ordinance, which helped to catapult development in the submarket, zoning in the Funk Zone is much more of an obstacle. It was formerly an industrial market, and the city has kept the zoning regulations pretty strict. \u201cThe market has very challenging zoning, even today,\u201d says Clarke. \u201cIt is in the coastal zone, and any property has to be ocean-related commercial and tourist serving. Some parts of the area have a housing overlay, and that is it.\u201d<\/p>\n<p>Clarke and her partner <b>Steve Leider<\/b>, a principal in Lee &amp; Associates Central Coast, are well aware of the zoning struggles in the market. The duo attempted to buy a building in the Funk Zone more than a decade ago. \u201cWe were going to put our office in the back and rent out the retail space, but when we went to the city, they said no office,\u201d says Leider.<\/p>\n<p>While there is little office space in the market, interesting and boutique retail concepts have exploded. The Lark is perhaps the most noteworthy of a handful of high-volume restaurants flanked by wine tasting rooms. There are also two high-end condo developments under construction. Those units will carry price tags starting at $3 million once complete. \u201cThe biggest thing that you will see down there is the redevelopment of La Entrada, which encompasses three corners,\u201d says Clarke. \u201cMichael Rosenfeld, the developer, is building a new hotel with retail across the street and a parking garage on the opposite corner.\u201d<\/p>\n<p>Much of this development will come on line in the next few years, and will unveil the next evolution in the market; however, Clarke points to a number of untouched industrial facilities and lots that have yet to join the movement. Some owners are holding out for higher prices,\u201d she explains, adding that they will sell, eventually. With those lots, which are substantial in number, the Funk Zone has plenty of development runway left.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How The Funk Zone Became A Retail Goldmine JULY 19, 2016 SANTA BARBARA\u2014With a hotel development underway and plenty of old industrial to make-over, the Funk Zone, Santa Barbara\u2019s emerging retail destination, is just getting started, Clarice Clarke of Lee &amp; Associates says in this EXCLUSIVE interview. \u201cIt is the center of the universe right now,\u201d Clarice Clarke, the president of Lee &amp; Associates Central Coast office, says about the Funk Zone, a submarket of&#8230;<\/p>\n","protected":false},"author":217,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":["post-1764","post","type-post","status-publish","format-standard","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.4 (Yoast SEO v28.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>GlobeSt.com: How The Funk Zone Became A Retail Goldmine - Lee &amp; 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