Yardi’s Plans to Revive Macy’s Building in Santa Barbara Get Early Praise

A long-vacant hole in downtown Santa Barbara took a meaningful step toward new life this month, and the city's design watchdogs — not always the easiest crowd to please — came away impressed.

At a preliminary concept review on August 12, the Santa Barbara Historic Landmarks Commission offered largely enthusiastic feedback on Yardi Systems' proposed adaptive reuse of the former Macy's building at Paseo Nuevo, with one commissioner calling the design a "major improvement" and another declaring it "an immensely supportable project," the Santa Barbara Independent reported.

The project would transform the empty three-story shell into the new corporate headquarters for Yardi Systems, the Santa Barbara-based property management software firm, housing roughly 600 local employees in the heart of downtown. For a city that has spent years grappling with office vacancies, a sluggish post-pandemic recovery on State Street, and a department-store anchor that has sat dark since Macy's departure, the prospect of hundreds of workers walking to lunch, running errands, and filling sidewalks in Paseo Nuevo is no small thing.

A Homegrown Solution for a Stubborn Space

The Macy's building has been one of downtown's most persistent puzzles. Previous proposals for the space fell through before the Yardi family approached the city about taking over the property for its local workforce, according to the Independent's reporting.

Kevin Yardi, the company's senior vice president, appeared at the August 12 hearing alongside lead architect Brian Cearnal of Cearnal Collective, one of Santa Barbara's most recognized architecture firms, who presented plans to rehabilitate the existing structure rather than demolish and rebuild.

The approach is textbook adaptive reuse: keep the main bones of the building and fix what never worked. According to the Independent, the design team plans to convert faux openings into real windows to bring daylight into spaces that were long ignored, add large two-story windows to the tower structure, punch windows into the blank, wall-like Ortega Street facade, and relocate elevators and escalators while adding skylights.

"We want to be able to bring in as much light as possible," Cearnal told the commission.

Cearnal described the effort as a "reinvention of this building's spirit" — an attempt to finally fulfill the structure's potential with elements that would make it more aesthetically pleasing than it ever was.

What the Building Would Look Like

Under the preliminary plans, office space would occupy the second and third floors, with a new rooftop deck featuring lowered parapets and walls to open up skyline views. The ground floor would include small retail spaces facing the Paseo Nuevo side, plus a conference room and event center for company gatherings — and, importantly, for the community.

Kevin Yardi told commissioners the first-floor event space would be available to local nonprofits at a reduced rate or free of charge, a commitment that could give downtown organizations a badly needed venue.

Exterior changes are comparatively modest. The Ortega Street archway would be removed, cast stone would be replaced with natural sandstone, and the familiar peacock murals at the Macy's entrances would come down — though plans call for working with the Museum of Contemporary Art to preserve and relocate them rather than losing them outright.

Commissioners Respond: 'What a Great Use of a Dead Building'

The Historic Landmarks Commission, which reviews projects in the El Pueblo Viejo historic district and is known for exacting scrutiny of downtown design, offered mostly positive comments, reserving critique for small design elements rather than the overall concept.

"What a great use of a dead building," said Vice Chair Robert Ooley, calling the project "immensely supportable." Ooley praised the designers for fixing elements of the building that had long fallen flat, saying the new look carries a "cool traditional Santa Barbara" feel.

Commissioner Ed Lenvik called the design an "immense improvement," though he flagged the proposed two-story windows as a departure from El Pueblo Viejo tradition — one he said could work for this project if executed well.

Commissioner Cass Ensberg said she was "very excited to have this energy in town," while suggesting touches like "Santa Barbara blue" window trim or dark wood elements similar to those at the former Saks Fifth Avenue on State Street. "Make it more playful and less formal," she suggested.

Commission Chair Anthony Grumbine said the revamped building would be "so much better than it was" and would bring life to a long-dormant stretch of downtown.

Because the session was only a concept review, the commission took no formal vote to approve or deny the project. Commissioners did officially agree that the project meets design criteria, and the proposal will continue through the city's review process with their comments in hand — refinements expected on the windows, the tower connection, and other small details.

Why It Matters for Downtown

For Santa Barbara residents, the stakes extend well beyond one building. Paseo Nuevo has struggled with turnover and vacancies as retail habits shift, and a dark former department store anchors a block bounded by State and Ortega streets. Bringing 600 Yardi employees downtown on a daily basis would deliver weekday foot traffic that supports surrounding shops and restaurants — the kind of organic economic stimulus city leaders have chased through State Street master planning efforts for years.

The project also signals something about the direction of downtown: a shift from big-box retail toward a mixed-use model where office workers, community events, and smaller storefronts share the same block.

Plenty of process remains before construction cranes appear. The design will return to the Historic Landmarks Commission — and likely other city bodies — as formal approvals are sought, giving residents additional opportunities to weigh in on a project that could set the tone, as commissioners themselves noted, for the future of Paseo Nuevo.

This article is based on reporting by the Santa Barbara Independent, including renderings credited to Cearnal Collective. Read the [original coverage](https://www.independent.com/2026/08/18/yardis-plans-to-revive-macys-building-in-santa-barbara-get-early-praise/) for full details.