Bayview Hotel in Escrow Again

By Jon Chown

The Bayview Hotel, the oldest commercial building in Aptos and possibly the entire county, is under contract again and if all goes smoothly, could be open in the spring of 2027, according to the Realtor who represents owner Cristina Locke.

However, the deal is in the early stages, he said, and a long ways from being finalized.

Datta Khalsa of Main Street Realtors said the historic building is under contract with a sale price of $3.25 million.

He would not say who the buyer is, but did mention it was a development team and not local developer Joe Appenrodt, who has previously been reported to be working on a deal to purchase the property.

“The idea is to bring it back as a hotel with a restaurant and bar,” said Khalsa, but added that permits and other issues could still nix the sale. The deal may hinge on whether the back half of the property can be developed. More rooms, possibly even a second hotel, could be added.

“They’re looking into all those things. If it pencils out after due diligence, they’ll go forward, but we probably won’t know for at least a month,” Khalsa said.

According to the National Register of Historic Places, on which it is listed, the Bayview Hotel, was built around 1878 by owner Joseph Arano, a local merchant, at the corner of Soquel Drive and Trout Gulch Road to serve passengers from the railroad that had just been connected to town. It is a recognized California Historic Landmark. It was settled at its current site at 8041 Soquel Drive in 1953.

Constructed in an Italianate architectural style, the hotel has 14 rooms, as well as a bar and restaurant. It fell into some disuse between World War I and World War II, but stayed open in one form or another for decades, It was mostly vacant when the current owner purchased it in 2002 for a little more than $1 million. It has been listed for as much $3.9 million in recent years.

Appenrodt confirmed that he is not the buyer. He said he knew a couple of possible buyers were behind him in line in escrow when he dropped his bid. He didn’t want to say anything that might possibly injure the deal and said he’d just like to see the hotel restored, whether it’s his project or not.

“I really hope they will get the project across the finish line,” he said. “But it’s really early in the process.”

Khalsa said many of the reports were positive. Since the hotel was moved to it’s current location in 1953, the electrical wiring, the plumbing, and the foundation are all in good shape, much better than one would think a building constructed in 1878 would be. It also has sprinklers and a new roof installed.

However, fire escapes will need to be upgraded. The balconies, staircases and windows will have to be upgraded. The kitchen needs a new walk-in freezer, and a lot will have to refurbished and restored. Khalsa estimated it would take about $2 million to restore.

“To be done correctly, a lot of it would have to be stripped down,” Khalsa said. “It’s going to take somebody who has some love for it.”

NOTE: This story has been corrected after missing the word “commercial” in the first sentence.