Three buildings of the Battistone Foundation’s holdings were listed for sale on the open market at $17.9 million in a prospectus dated April 7 from Steve Golis of Radius Commercial Real Estate. The Palm Tree Apartments on upper De la Vina Street have housed individuals in their “golden years” for the past half-century and are owned by a foundation established by Sam Battistone Sr. in 1968, but its current boardmembers have decided they would offer grants to seniors to fund their housing instead.
Although the foundation has shopped Palm Tree and its Edgerly properties downtown for the past year, looking for a buyer who would continue its low-income senior operations, the prospectus makes no mention of any covenant to maintain that status. It mentions Battistone’s ownership in the context of the property being “thoughtfully remodeled” and states, “Current rents are well below market due to current ownership running as a nonprofit offering senior housing.” It then says in bold type, “Tremendous value add in prime location.”
Battistone owns two sets of apartments: the Palm Tree on upper De la Vina and the Edgerly on a full city block in downtown Santa Barbara. Both house active seniors over the age of 62, some in their nineties who have lived in their apartment for three decades. Built in 1971, Palm Tree’s 40 units are the younger properties held by the Battistone Foundation. The Edgerly complex in downtown Santa Barbara is anchored by what was once the Edgerly Apartment Hotel built in 1912. The block — bounded by West Sola, De la Vina, West Victoria, and Chapala streets — and the 10 Edgerly parcels are home to about 150 Battistone tenants. Cindy Battistone Hill, CEO of the foundation, said that only the 1325 Chapala Street building has any type of housing restriction, one that can be terminated by an agreement with the City of Santa Barbara at any time…