To be auctioned off will be a single property known as “Mira Vista” that is on the remaining 34+/- acres of what was one of the earliest grand estates in Montecito. David Myrick, in his “Montecito and Santa Barbara” two-volume history of our area, calls the 100-year-old estate a turning point in Montecito’s history. Its construction, Myrick writes, “marked the beginning of the transition from an agricultural area to a rural residential community with great estates.” The property is zoned for six separate parcels, although it works as one giant estate. Noted landscape architect Frederick Law Olmsted, responsible for New York City’s Central Park, has been credited by some with the design of the subtle pastoral landscaping, but that cannot be confirmed. Certainly the meadows and finely cut stone walls and bridges on the property are reminiscent of Olmsted’s work.

Montecito’s “third evolution”
     Harry Kolb, who has been successfully working the Montecito real estate market for over twenty-five years, has the listing. “The biggest thing I’ve noticed in the last five years or so,” Kolb said during a telephone conversation with the Journal, “is that it has become obvious we are in the middle of our third market evolution in the Santa Barbara real estate market.” He proffered that the first incarnation was when the successful completion of the intercontinental railroad brought wealthy East Coast families to the West Coast for the season (winter or summer). “After returning two or three times, many of them invested in property here,” Harry noted, and said that they then “became significant contributors to many of the things we take for granted.” He rattled off features like the various arts facilities, the publicly held oceanfront property, bathhouses, some of the streets, and even the trees that were planted by these philanthropic people as the heritage they left behind.

     Curiously then, this “third evolution” has re-created the demographics of the first evolution: Montecito has gone from very wealthy families, to wealthy couples, back to very wealthy families. “It has been great for Montecito,” Kolb concluded, “because it has invested us with new vitality and new families ready to invest in the things families look to: the schools, the zoo, the yacht harbor… It’s rather dramatic to see the switch from older and sedate to young and vibrant.”

     Back to Mira Vista: the original Waterman home and four of its acres have been split off and the entrance to the grand old home is now on Ashley Road. The current owner built a new house on the remaining property in 1984, hiring noted California architect Cliff May to design a hacienda-style homestead. It is one of May’s larger homes and many familiar with his work consider it one of May’s more dramatic creations. The owners applied a lot of special attention, like radiant heat (that Cliff May was famous for); the current owners went as far away as Germany to find an insulation pad to accommodate the heat. Other features include glass-paneled walls that disappear so that both the north and south side of the living room can be opened to the outside for entertaining. The panels were typically larger than could be made in the U.S. at the time and were custom-made in Germany. When they arrived, they were the wrong size and had to be re-made, holding up construction for months until they were re-done.

     Mira Vista has been on the market since 1999, and the house and its 34+/- acres was originally priced at $25 million. Within 6 or 7 months, it was raised to $28 million, where it stayed for about two years. In April 2002, the price was reduced to $26 million. In November 2001, when Kolb got the listing, both the husband and wife were forced into bankruptcy and a dispersing agent was assigned by the court to administer the sale of the property. “In many practical terms,” says Mr. Kolb, “that meant it was being made available for the first time.” He explained that prior to both parties declaring bankruptcy, only one party had been in bankruptcy although both owned the property. Because of that, he said, “It was difficult to make a deal.”

     Kolb says the reason an auction has been decided upon is that “we are aware of a number of potential buyers eager to buy the property but who are reluctant to come forward and see it through the court process. We decided to force the court date so that any interested parties would once and for all have the opportunity to make their interest known.” Kolb reports that since announcing the auction date, he has been showing the property “nearly once a day.”

     I know this may sound a little crazy to some readers, but this property, by virtue of its history, location, beauty, and price (bids start at $18 million), even at auction, is Montecito’s Best Real Estate Bet. There may only be a few thousand Americans that can afford such a jewel, but for some budding potentate Mira Vista is likely to prove a most valuable treasure.

Real estate sales: Jan thru Sep ‘02
Keith C. Berry, another successful and knowledgeable local real estate agent, forwarded the following statistics, which should give both buyers and sellers reason to pause. The figures summarize real estate activity in South Santa Barbara County for the first nine months of 2002 and then compare those nine months to the first nine months of 2001 and 2000. Also included is the same comparison for the month of September only.

      What these figures indicate is that housing remains healthy, though the number of sales are off the robust pace of 2000. Sales, which had already begun to slow in the early summer of 2001, should show a real halt when the end of the year numbers appear, factoring in the last three months of 2001 – post 9/11. It would be a good idea to attach this to your refrigerator or office bulletin board so that when the complete yearly figures are determined, you’ll be able to discount the 9/11 after effect. Though I don’t believe house prices will be any higher in February than they are now, if interest rates stay low, (they have taken a spike upwards), housing sales and prices should begin to move up in Montecito/Santa Barbara as spring turns into summer. My best guess concerning interest rates were that they would stay low for the foreseeable future, but the Republican election sweep has made it more likely we will experience a business resurgence, bringing interest rates along with it. If you are in the market for a mortgage or a re-finance, you should probably do it now, before the next session of a GOP Congress gets fully underway. Just in case some really good economic things happen.