Catalyst For Sale
The sale caught at least one staffer by surprise when asked by the Santa Cruz Sentinel. But it wasn’t completely unexpected after the death of 34-year property owner Randall Kane in 2009.
“We’re selling cash flow,” Carl Blanke of Ron Hirsch and Associates told the paper. The company, located in Capitola, Calif., is marketing the property. The current nightclub operator reportedly has a lease that runs through Dec. 2013 with options for renewal.
The property consists of adjoining buildings that create a 19,500-square-foot structure. The nightclub business was sold separately to Paul Gerhardt in 2003. A package for prospective buyers lists $164,000 in net operating income, a price of $112.82 per square foot and 7.5 percent rate of return, according to the Sentinel.
The downtown location, not far from the famed Santa Cruz Beach Boardwalk, is a good one, if a little long in the tooth. The circa 1913 buildings, merged in 1973, survived the 1989 Loma Prieta earthquake and the club continues to host a quality lineup of local and touring artists.