Paseo Nuevo Adaptive Reuse Project

Category: Mixed Use

Address

651 Paseo Nuevo
Santa Barbara, CA 93101

Details

Development Status: Planned

Estimated Completion: TBD

Developer: Yardi Systems & DSP Partners (Dune, Shopoff Realty Investments, and Praelium)

Architect: TBD

DETAILS

This landmark joint venture introduces a monumental two-piece adaptive reuse strategy to transform the Paseo Nuevo shopping mall into a vibrant downtown hub. The project eliminates the mall's long-vacant anchor department stores without requiring full demolition, breathing new life into the heart of the State Street corridor. On one side, local software giant Yardi Systems will convert the former Macy’s building, inline retail spaces, and the mall parking lot into its corporate headquarters, bringing over 600 daily employees directly into the downtown core. On the other side, the former Nordstrom building will undergo a residential overhaul to establish between 80 and 112 housing units, featuring a design that removes a portion of the roof to construct a stunning central courtyard.

To support local workforce housing, at least 10 percent of the residential units will be reserved for moderate-income renters. Beyond the physical $100+ million renovation funded entirely by the private sector, the development agreement delivers unprecedented public benefits, including $5.7 million injected into the city’s Local Housing Trust Fund, $700,000 for the downtown parking fund, and a $1 million public benefit contribution. The revitalization is projected to generate upwards of $700,000 in annual municipal revenue while driving an estimated $5 million in yearly consumer spending to surrounding downtown businesses.