Quick Take
The property at 1009-1011 Pacific Ave. that's been home to music venue The Catalyst since 1976 is for sale for $4.55 million, listed by the heirs of the building’s former owner, Randall Kane. The Catalyst's lease expires in mid-2028.
The longtime home of The Catalyst nightclub in downtown Santa Cruz is up for sale, putting the storied music venue’s future in something of a limbo.
This month, the property at 1009-1011 Pacific Ave. went on the market for $4.55 million, listed by the heirs of the building’s former owner, Randall Kane. Kane was the longtime owner of the Catalyst, which he purchased in 1969 and moved from Front Street to its current location in 1976. He sold the business in 2003 to a group of partners, but kept the building, which went to his family after his death.
The music venue’s current lease with the business’ owner, Usually Hip, Inc., expires in mid-2028 with no further options to extend, and a new buyer could decide to continue with a new lease – but that’s no guarantee, according to Reuben Helick, managing director with Cushman & Wakefield, which has been contracted to sell the building. Any new owner would have to honor the existing lease until its end, however.
“Our hope is that this continues as a music venue,” said Helick. “[But] if an offer comes in at the right price, [the owners] will take it.”
The Catalyst is one of the oldest buildings in downtown Santa Cruz, and was originally a bowling alley. Built as two adjoining buildings in 1938, the properties were merged in 1973 and managed to survive the 1989 Loma Prieta earthquake.
A Santa Cruz legend, the Catalyst has hosted some of the biggest names in the music industry throughout its history, including Neil Young, the Beach Boys, Chuck Berry, Pearl Jam and Nirvana, among countless others.
A new owner could repurpose the building for a different use, decide to operate it as a music venue themselves, or decide to develop the property for housing/mixed use.
“We kind of saw this coming; it wasn’t a surprise,” said Igor Gavric, the general manager of The Catalyst. “Landlord deals are sort of independent of us. We’ll see what happens.”
Gavric, who has been the general manager for the past 12 years, said the business will certainly talk with the eventual buyer about next steps. At the moment, it’s business as usual. “We’re not going anywhere for now,” he said.
Kane’s heirs previously listed the building for sale in 2011, asking $2.2 million, but it didn’t sell at that time, Helick said. The current sale involves the two-story, 19,500-square-foot Catalyst space, which includes two performance areas, multiple bars, balconies and an upstairs entertainment area. The first floor consists of a lobby area, commercial kitchen, cocktail bar, the Atrium performance area and the main performance area. The second floor includes the balconies, another bar, a manager’s office, a green room for performers and an entertainment area. A buyer also has the option to purchase the adjacent parcel at 1013 Pacific Ave., which has long been vacant.
Downtown revitalization efforts, including the new housing being constructed, make this an exciting time to invest in the area, said Helick.
“People will be living here, shopping here,” he said. “That’s going to be big. It could be a while, but it’s going to be a lot more dynamic. It’s going to be a fun place.”
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