Santa Sabina Center: A Legacy Preserved
Valbridge Property Advisors | Northern California
The Santa Sabina Center, established in 1939 and situated on 2.3 pristine acres in Marin County, California, embodies a rich historical and architectural significance, mirroring the Tudor-Gothic style of the Dominican Monastery at Stoke-on-Trent, England. This property, with its many facilities including a chapel, prayer room, and numerous other amenities, has served various spiritual and educational purposes over the decades.
The center includes a large chapel that can accommodate 40 to 60 individuals, a similarly sized prayer room, a conference room with a capacity of 100, and a dining area for 60 guests. The site includes 38 bedrooms, a library, a cozy study with a fireplace, and a smaller meeting room for about a dozen people. The grounds are enhanced by a courtyard garden and two unique structures: a small hermitage and a yurt set upon a redwood deck. Distinctive features such as black and white tiled floors and bespoke windows contribute to its timeless appeal, alongside a historical chapel painting by local artist E. Charlton Fortune.
Operated by the Dominican Sisters congregation as a retreat center since 1970, the property has catered to an array of spiritual practices, integrating music, literature, and ecological themes. Prior to this, it functioned as a training facility for new congregation members. Due to increasing operational costs and a declining membership, the congregation decided in 2023 to sell the property, with the primary goal to transfer it to an organization that would honor its legacy and continue with the existing or a similar use. However, brokers in the area had approached the Sisters to sell the property for future residential development, suggesting that this was the highest and best use of the property, by virtue of its location in a very desirable Marin County neighborhood.
The appraisal aimed to determine the property’s value under two scenarios: 1) as a residential subdivision and 2) maintaining its current educational/religious function with the possibility of using the facility as a retreat center. At the onset of the appraisal assignment, it was revealed that a restrictive use clause limited the property to its existing educational/spiritual uses unless lifted. This very restrictive use clause added significant risk to future residential redevelopment of the site and had a significant impact on its value, under a use that was different than the existing use. Dissolution of this use easement was included as an extraordinary assumption in the assignment to derive its value as a residential subdivision site. The appraisal incorporated the Sales Comparison Approach, analyzing the thin market for such specialized properties in the Bay Area, and comparing it to educational facilities, meeting halls, lodges, and bed and breakfasts. The Cost Approach was also used.
The architectural integrity of the center is well-preserved, with significant upgrades and safety improvements made within the last decade, enhancing its marketability. Our thorough market analysis underlined that the property’s value as a residential subdivision was closely comparable to its valuation as a retreat or educational facility, with just a 3% difference favoring residential use.
This minimal value discrepancy was crucial for the congregation’s decision-making, confirming that selling the property to a like-minded entity would not entail a significant financial loss. Consequently, the property was sold to the Hoffman Institute for $11.5 million, a not-for-profit organization focused on adult education and spiritual growth, aligning perfectly with the center’s historical mission. The sale price was within 5% of the appraised value, underscoring the accuracy of our appraisal and the viability of preserving the property’s intended use.
The sale of the Santa Sabina Center to the Hoffman Institute not only ensured the continuity of the property’s legacy but also demonstrated the potential for such unique properties to retain their value and purpose in the face of shifting economic and organizational dynamics. This case serves as a testament to the importance of detailed appraisals in guiding significant real estate decisions, particularly for properties with complex historical and functional narratives.