Santa Barbara Commission Praises Plan to Transform Vacant Nordstrom Into Housing

The shuttered Nordstrom building in downtown Santa Barbara is one step closer to finding a new life as much-needed housing. This week, the city’s Historic Landmarks Commission signaled broad support for a proposal to transform the vacant retail footprint at Paseo Nuevo into 112 residential units. While the advisory review included minor critiques regarding the building's Spanish-style aesthetics, the overall sentiment from both city officials and project architects points toward a major revitalization for the downtown core.

The positive reception marks a significant milestone for the high-profile property at 17 W. Canon Perdido St., which has sat largely unused since the department store closed its doors in 2020. The project is part of a larger, recently approved shakeup in ownership at Paseo Nuevo aimed at redefining the heart of the city.

A New Chapter for Paseo Nuevo and Downtown Retail

The Nordstrom redevelopment is a critical piece of the recently finalized Paseo Nuevo ownership transfer. Under the new agreement, the former Nordstrom building and its underlying land were turned over to DSP—a joint venture comprised of Dune, Shopoff Realty Investments, and Praelium.

The broader deal also included transferring the long-vacant Macy’s building to Yardi Systems, which plans to convert the space into its new corporate headquarters. The Macy's location originally closed in 2017.

For Santa Barbara, the adaptive reuse of these massive commercial boxes reflects a growing trend of cities pivoting away from traditional brick-and-mortar retail toward mixed-use downtown living. The introduction of over a hundred new units, coupled with a major employer moving into the adjacent space, is poised to bring a consistent stream of foot traffic back to the area, supporting the surrounding small businesses that rely heavily on a vibrant downtown ecosystem.

Inside the 112-Unit Proposal

According to the project plans, the sheer exterior of the former department store will undergo a thoughtful transformation to make it habitable and inviting. While the basic footprint will remain intact, developers plan to carve out the center of the building to create an interior courtyard. Planners believe this central outdoor space will act as the social anchor of the new community.

Sarah Bronstad, a land use planner representing the project, told the Noozhawk that the courtyard is designed to offer future residents a quiet escape. Rather than a highly programmed space with intense activity, the architectural goal is to emphasize simplicity, comfort, and shade, heavily featuring lush plantings suited to the Central Coast climate.

To accommodate natural light in the massive structure, the exterior will be punctuated with additional windows and shallow balconies. The proposed 112 units will range widely in size to accommodate different needs, spanning from 450 to 1,350 square feet. The average unit size will be 794 square feet.

Notably, the project includes an affordable housing component. Eleven of the apartments will be marked as income-restricted, explicitly reserved for moderate-income households for at least 90 years. The building's basement level will also be repurposed to support the residential lifestyle, housing trash collection areas, secure bicycle parking, resident storage, and additional amenity spaces.

Architectural Tweaks and Local Feedback

Despite the widespread enthusiasm for the housing conversion, Santa Barbara’s Historic Landmarks Commission did not hold back on traditional design critiques—a standard part of the city’s rigorous architectural review process.

Commissioners largely praised the vision but zeroed in on the proposed window configurations. Commissioner Ed Lenvik noted that the current window layout didn't quite align with the traditional Spanish-style architecture Santa Barbara is known for, suggesting the design needed more white wall space. Lenvik emphasized that because the building will stand for generations, the details need to be perfected now.

Project architect Paul Anderson explained that the windows were intentionally enlarged to ensure adequate natural light reached the interior residential units. Other commissioners, including Cass Ensberg, agreed that while the project looks highly promising, minor tweaks—such as simplifying the windows and incorporating more color and patterns—would help the building blend into the historic downtown aesthetic.

The commission also requested changes to the Juliet balconies—shallow, false balconies that are too small to actually stand on—and asked for thicker walls around the arches planned for the interior courtyard.

Commissioner Keith Butler encapsulated the panel's overall feeling, stating he thought it was a terrific project and that the commission looks forward to "the resurrection of the corpse of the building that is there today."

What Comes Next for the 805 Region?

The path forward for the former Nordstrom site remains clearly defined. The development team will spend the coming weeks adjusting their architectural drawings to address the Historic Landmarks Commission's suggestions regarding window layouts, wall space, and balcony designs.

The project is officially scheduled to return before the commission on September 9. At that meeting, developers will present their revised plans, moving the proposal one step closer to final approval. For Santa Barbara residents, the upcoming hearings represent an opportunity to witness a pivotal shift in downtown infrastructure—turning the page on an era of empty retail boxes and opening a new chapter focused on housing and community vibrancy.