Tourists lining up for frozen bananas on Balboa Island in Newport Beach often wander into the narrow storefronts that line Marine Avenue — small, curated shops where square footage is scarce and every inch matters. One of those spaces just sold in one of the most expensive retail deals in Orange County based on price per square foot.
A 1,300-square-foot building at 323 Marine Ave. on Balboa Island sold for $2.2 million, or $1,692 per square foot, the highest rate recorded on the island. That’s nearly triple the $616 average retail sale price per square foot in Newport Beach, four times the Orange County average of $451 and five times the national average of $245 per square foot, based on CoStar data.
The buyer, a local investor, plans to retain the tenant, a home decor shop called The Blu Canoe that specializes in vintage furniture, woven baskets, dried botanicals and candles — items that resonate with both the design-savvy island locals and the day trippers who shop while waiting for the next ferry. The store aligns with the island’s aesthetic: curated, coastal and unfussy, but expensive.
“This highly visible location offers an exceptional storefront presence in a high-foot-traffic area, surrounded by boutique shops, upscale dining, and a steady flow of residents and visitors,” said a statement from Joseph Lising, managing director at Cushman & Wakefield, which represented the seller in the deal.
Small, centrally located retail properties on Balboa Island rarely change hands, and when they do, they command a premium, deals show. The transaction highlights continued demand for commercial space in destination retail districts, particularly those with built-in foot traffic and limited inventory, Lising said.
Newport Beach's Balboa Island is a compact, walkable neighborhood built on a dredged bay in the early 20th century. It’s home to roughly 3,000 people and connected to the mainland by a narrow two-lane bridge or a short ferry ride across the harbor. The median home price exceeds $3 million, and visitors — many from Los Angeles and surrounding suburbs — arrive year-round for the waterfront views and independent shops.
Once a fire station
The Marine Avenue building was constructed in 1930 as a combined police and fire station. It was sold by the city of Newport Beach in 1994 for $325,000, or $250 per square foot, to the family office that held it until this year’s sale.
The building is directly across from the rival banana stands that inspired those featured in cult television shows "Arrested Development" and "The OC," providing heavy tourist visibility, especially on weekends, according to Liser.
Most retail tenants on the island are small businesses, and turnover is relatively low due to the lack of available space.
Recent commercial activity on the island has been limited, with few listings and even fewer sales. In 2021, Cushman & Wakefield brokered the off-market sale of the nearby Balboa Fun Zone, one of the area’s largest commercial sites.
For the record
Cushman & Wakefield's Nathan Demosthenes represented the seller in the transaction along with Lising.