The LAAA Team of Marcus & Millichap is pleased to present 1118 Bath Street, six existing units on a deep, one-third-acre lot in West Downtown Santa Barbara, a few blocks west of State Street. The parcel runs about 64 feet along Bath Street and 228 feet deep, roughly 14,606 square feet. The homes sit at the front of the lot in cottage-style buildings, including a front house the City's file shows was converted to a duplex in 1931, a detached studio and a detached two-bedroom house with a covered porch. A long driveway runs past them to a large paved rear yard and garages.

The unit mix is three studios, two one-bedrooms and the two-bedroom house. The units keep their period character, down to a clawfoot tub in one bath and a gas range in the kitchen photographed. The property is master metered and the owner pays every utility. City permit records document four of the six units; the City's 2023 to 2031 Housing Element sites inventory lists the parcel with six existing units.

The value is in the land. At $2,350,000 the lot trades at about $161 per square foot of land, a one-third acre of R-MH ground inside the City's Priority Housing Overlay, an 11-minute walk from State Street. The homes occupy the front of the parcel; behind them, SB Permitting's 11/2026 land use study for the owner finds room for roughly 7,000 to 7,500 square feet of new floor area under the City's solar-access rule, with no parking required for new homes under AB 2097. The study notes a buyer can vest today's rules and fees with an SB 330 preliminary application, and that SB 684 may allow a small-lot subdivision on a plan of ten or fewer homes, so new units could be sold separately. The City's own Housing Element counts capacity for 13 additional homes here. A buyer gets rental income today on land the City has already planned for more.

The first step is small. City code allows up to two detached accessory dwelling units on the lot (800 SF, one story each) with staff approval and no parking required. About a third of a mile away, an eight-unit apartment property at 1109 San Pascual Street completed a 988 square foot detached ADU in 2024, and next door at 1119 San Pascual two 746 square foot detached ADUs replaced three carports. For a larger plan, the study shows Concept 1, three flats over tuck-under parking plus a detached ADU, and Concept 2, ten rental flats with no parking and two moderate-income units, for 16 homes on the site. Both replace the rear garage and keep every existing unit.

Five units are occupied and scheduled at $11,250 a month against $13,000 at market rents, 16% of upside as units turn; one occupied tenant is behind on rent (Note 1). The sixth unit, a studio, is vacant and ready to lease. Santa Barbara's temporary rent increase moratorium applies to covered tenancies through 12/31/2026, and a unit re-rents at market when it is lawfully vacated. The property fits a local investor or small developer who wants West Downtown land with income in place, or a 1031 buyer looking for a coastal asset with a clear path to add units.