Capitola Redevelopment Site
3720 Capitola Rd, Santa Cruz, CA 95062
Price: $5,500,000
0.60-Acre

3720 Capitola Road is an approximately 0.60-acre redevelopment site located at the corner of Capitola Road and Bulb Avenue in the City of Capitola. The site has a rectangular shape with frontage and access along two streets.

The site has an excellent location on a commercial thoroughfare in one of the major shopping destinations in Santa Cruz County. The zoning for the property is Community Commercial, which permits a wide range of personal services, business services, retail sales, and office use.

As with most communities in the area, Capitola has a need for more housing. Redevelopment of the site with residential uses is allowed in a mixed-use project, and development of affordable housing would be permitted using state laws such as AB 2011. Additionally, the state density bonus law could be used to build an affordable housing project at a higher density than is permitted under the existing zoning.

The subject property is located in the main retail destination in the county. There is approximately 1.2 million square feet of retail space at the intersection of Capitola Road and 41st Avenue, including the Capitola Mall. The mall is the largest retail development in Santa Cruz County and spans 46 acres. Major retailers in the area include Target, Whole Foods, New Leaf, CVS, Trader Joe's, Kohl's, Macy's, Michaels, and Ross.

3720 Capitola Road is a short distance from multiple beaches and local, county, and state parks. Pleasure Point, The Hook, and Capitola Beach are among the top surfing destinations in Santa Cruz County and attract surfers of all experience levels.

In March 2026, the Capitola City Council adopted an update to the zoning ordinance for the Capitola Mall. Under the new zoning, a total of 1,777 new residential units could be developed on the mall site. The addition of housing to the mall site will transform the property into a walkable mixed-use district.

Location and Property Highlights

  • High-visibility infill redevelopment site situated at the corner of Capitola Road and Bulb Avenue, offering strong street exposure along one of Santa Cruz County's busiest commercial corridors.

  • Approximately 0.60-acre rectangular parcel with frontage and access along two streets, providing flexibility for site planning and future development.

  • Zoned Community Commercial, making the site ideal for retail, affordable housing, senior living, or hospitality uses.

  • Residential development permitted as part of a mixed-use project, with eligibility for streamlined approval under state laws such as AB 2011, and potential for increased density through the state density bonus law.

  • Walking distance to Target, Whole Foods, New Leaf Community Market, Trader Joe's, CVS, and dozens of restaurants and shops.

  • Located within the largest retail hub in Santa Cruz County, near approximately 1.2 million square feet of retail space anchored by the 46-acre Capitola Mall.

  • Near parks, beaches, popular tourist destinations, libraries, and community centers throughout Capitola.

  • Short drive or bike ride to Pleasure Point, The Hook, and Capitola Beach, among the top surfing destinations in Santa Cruz County.

  • Capitola Mall was recently re-zoned to allow development of more than 1,700 residential units, positioning nearby sites like this one to benefit from increased density, foot traffic, and long-term value appreciation as the surrounding area transforms into a walkable mixed-use district.

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