AJR Capital Group Acquires Kellogg Square in Goleta for $11.3 Million in Colliers-Brokered Deal

AJR Capital Group, LLC has completed the $11.3 million acquisition of Kellogg Square, a neighborhood retail center located at 5555–5585 Hollister Avenue in Goleta, California. The transaction closed Aug. 24, 2026, with a Colliers advisory team representing both the buyer and an undisclosed seller.

Deal Details and Brokerage Team

The Colliers team on the transaction included Vice President Miles Waters, Executive Vice President Austin Herlihy, Vice President Chris Parker, and Associate Mike Chung. The four brokers represented AJR Capital Group, LLC on the buy side while also acting for the seller, whose identity was not disclosed.

Kellogg Square sits within what Colliers described as one of Santa Barbara's most established retail corridors. The center hosts a mix of retail, restaurant, and service-oriented tenants and serves the surrounding Goleta community. Square footage, occupancy rate, cap rate, and year-built figures were not provided in connection with the transaction.

What the Brokers Said

"Kellogg Square represents a highly desirable neighborhood retail investment in one of Southern California's most sought-after coastal markets," said Miles Waters, Vice President at Colliers. "The combination of a strategic location, an established tenant base, and the enduring strength of the Santa Barbara market made this a compelling opportunity for investors."

Austin Herlihy, Executive Vice President at Colliers, framed the sale within the broader development trajectory of the submarket. "This transaction represents the catalyst Old Town Goleta has been waiting for," Herlihy said. "With thousands of new residential units coming into the pipeline across Goleta to meet essential housing demand, Old Town is experiencing a dramatic shift. This specific asset sits right at the center of that growth, bridging the gap between new housing and the cutting-edge commercial infrastructure driving our local economy."

Market Context: Tight Retail Vacancy on the Central Coast

The transaction comes against a backdrop of constrained retail supply in the Santa Barbara area. Goleta retail vacancy stood at 2.5% at the time of the sale, while Santa Barbara's broader retail vacancy rate was 2.8%, reflecting limited available space across the submarket. Santa Barbara County retail activity included 15 leases totaling 85,000 square feet in a recent reporting period, with a 3.2% vacancy rate, underscoring the market's tightness.

Investor appetite for necessity-driven retail in supply-constrained coastal submarkets has remained active. A local retail market report indicated a 6.9% cap rate in Q2 2026, suggesting transactions are still occurring in a comparatively low-yield environment by historical standards.

Outlook for Kellogg Square Under New Ownership

Under AJR Capital Group, LLC's ownership, Kellogg Square is expected to continue serving as a neighborhood-oriented retail destination for the Goleta community. Colliers noted that the property's stable occupancy and location within a corridor benefiting from new residential development drove significant investor interest ahead of the closing. The firm said the sale reflects continued confidence in well-positioned retail properties along California's Central Coast.

Sources: Colliers – Colliers Facilitates $11.3 Million Sale of Kellogg Square in Santa Barbara