Santa Cruz Real Estate Spotlight: 423 & 425 Pacheco Ave

Dax Nollenberger
- Dax Nollenberger

Santa Cruz Real Estate Spotlight: 423 & 425 Pacheco Ave

Welcome to ‘Santa Cruz Real Estate Spotlight,’ an ongoing real estate series dedicated to exploring unique neighborhoods and homes providing an in-depth analysis you won’t find anywhere else. Here, we’ll examine local trends, recent sales, current market conditions, property possibilities, and surrounding amenities. Interested in a personalized analysis of your home or neighborhood? Contact me for an exclusive review of a Santa Cruz County property or neighborhood directly tailored to you.

Today the focus is on 423 & 425 Pacheco Ave. Our team, Brezsny Associates, recently listed these two eastside Santa Cruz properties. Sold separately or together, these properties are screaming with potential in the beautiful and quiet Banana Belt neighborhood. 423 Pacheco is offered at $1,075,000 and features a vintage 1920s 3-bedroom, 1-bath home on a large 6,752 sq ft lot, complete with a separate 2-bedroom guest house and multiple development options. Meanwhile, 425 Pacheco, priced at $699,000, offers a buildable parcel with existing outbuildings, perfect for new construction or multi-generational living. Both lots provide a great community vibe and are ideally located in Midtown, offering excellent commute access and a chance to revitalize historic gems.

Property Website:

Neighborhood Update

Dax’s Take: The Price/Sqft is well above the county average which hovers around $800. The Days on Market is also comparatively low as this is a very sought-after neighborhood with a great mix of large lots, sunny conditions, and prices that hover around the county Median Price.

How’s the Market?

Dax’s Take: The market is performing favorably despite 12+ months of elevated interest rates that have slashed affordability. While this has reduced the buyer pool some, prices continue to elevate providing clear evidence that there is still a strong imbalance between available supply and increasing demand.

What Can I Do?


Eligible: Based on preliminary research, the property is eligible for SB9 benefits. It is within the urbanized area that is zoned residential, not in a historic district, no Ellis Act, no affordable housing or rent control, not in a protected area, and no natural hazards.


  • Lot split + two dwellings on each new lot. That means 4 primary homes can be built on one of the original lots or a Primary and ADU on each new lot. See restrictions if both lots are purchased.


  • You can’t split an adjacent lot if you have already split a lot pursuant to SB9.
  • Owner must occupy one of the lots as their principal residence for a minimum of three years from the date of approval.
  • If the home was tenant-occupied in the last three years, you can’t demolish more than 25% of the existing structure. When applying, you must provide evidence of housing vacancy or owner occupancy such as property tax records, income tax records, utility bills, vehicle registration, or similar documentation.

Allowed. All necessary permits will be required but for a single-family residence, an ADU and a JADU may be built. Note that a JADU requires that the property be owner-occupied.

Reach out for current resources and to learn more.

Read more here:

Rental Options
Long-Term Rental

NOTE: This report does not account for property condition. For more details on rental estimates, reach out.

Dax’s Take: This will be entirely dependent on the condition and amenities provided at the property. A new build is likely to fetch more and the current condition is likely to fetch less.

Short Term Rental

Restricted. This property is located in the city of Santa Cruz which is ONLY offering HOSTED STR permits. Hosted can be defined as “an STR where the owner lives in the home for more than 6 months out of the year”. This means only properties that are primary residences are eligible. Note: A legal ADU on the property would make it ineligible for a short-term rental permit as would utilizing SB9.

Dax’s Take: The general plan for the property will be key. The large lot provides great flexibility to make your own. If a single-family home is maintained/built without ADUs or an SB9 benefit, this could be a thriving Airbnb. That said, with the work/capital requirement, there may be better uses to maximize return.

Neighborhood Amenities

An ideal location on the east of the Santa Cruz city limits. This area is coveted for its consistent sunshine and central location. The property itself is on a quiet street with subdued road noise.  The proximity to Highway 1 and 17 makes it an ideal commute location. With 5 grocery stores within .6 miles, Seabright Beach within .5 miles, and Arana Gulch walking path within .25 miles, this location is built for convenience. 

Dax’s restaurant recommendation: Saint Adairius Rustic Ales. This energetic and lively beer portal combines quality board game entertainment and award-winning beers with a delicious Detroit-style pizza joint called Bookies. It is a must-try!


Elementary: DeLaveaga Elementary School rankings:
Overall: B+
Rank #17 rated Elementary School in the County.
Students: 475
Student-teacher ratio 26:1

Middle School: Branciforte Middle School
Overall: A-
Rank #4 rated Middle School in the County.
Students: 423
Student-teacher ratio 18:1

High School: Harbor High School
Overall: A
Rank #4 rated High School in the County.
Students: 1,043
Student-teacher ratio 19:1

Dax’s Take: Harbor High has improved both attendance and performance since it became a certified International Baccalaureate school in 2020. This offers an exceptional opportunity for an additional IB diploma if all required curriculum is completed. Meanwhile, DeLaveaga has a wonderful Spanish immersion program for young students. A lottery may be required.

Read my deep dive on local Elementary Schools HERE:

Read my deep dive on local High Schools HERE: 

Final Thoughts

This property provides rare flexibility to make your own. The two adjoining 6,752 sq ft parcels provide maximum creativity. Whether it’s SB9 splitting one of the lots and building four homes on the new parcels, creating a family compound with the traditional single-family homes and large yards, or developing one lot as you live in the other. The options are endless.

Interested in a tailored analysis for your property? To request a Real Estate Review, email me at [email protected]

Thanks for reading! 831-227-5847

– Dax Nollenberger

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