Historic Bayview Hotel in Aptos sold

APTOS — A historic hotel in the heart of Aptos Village will likely soon be under new ownership for the first time in more than two decades.

An offer has been accepted to purchase the Bayview Hotel, according to Datta Khalsa of Main Street Realtors, who took up the listing for the seller in early October. While the buyer has put a deposit for the local landmark into escrow and the deal is expected to close before the end of the year, Khalsa, as a matter of business policy, wouldn’t share the name of the buyer and referred to them only as a local developer and operator that was very qualified.

When asked about intentions of the assumed new owner, Khalsa replied, “I would say renovating it to its full potential as a historic hotel, bar and grill, and events center.”

Built in 1878, the Bayview is a 14-room bed and breakfast standing three stories tall at nearly 10,000 square feet. The property was listed for $3.9 million and though he also couldn’t disclose the final purchase total, Khalsa said the accepted offer was above the asking price.

Part of what makes the property so unique, he added, is that not only is it outfitted for hotel stays, but it also has a full kitchen, bar, courtyard and, as the name implies, an actual view of the Monterey Bay. The hotel has been a treasured asset for owner Cristina Locke and the Locke family since 2002, according to Khalsa. While it has not been in active operation for more than four years, Locke is working to reestablish some permits that will allow the new owner to return the architectural gem to its former glory.

According to Aptos historian and co-executive director of the Aptos Chamber of Commerce John Hibble, the hotel was originally commissioned by Joseph Arano, who was born in Montepelier, France, in 1837 and immigrated to the United States before settling in Aptos at age 17.

The building, sitting at 8041 Soquel Drive, features a late Victorian-Italianate architecture with a Parisian style and was originally intended as Arano’s home before he transformed it into a hotel and event center that became famous for its extravagant Spanish dinners.

“It’s kind of what you’d call the ‘grande dame’ of Aptos Village,” said Hibble. “It’s the old Victorian footprint for the village.”

Hibble said the Bayview, originally named the “Anchor House” before the hotel transformation, is the last of four turn-of-the-century hotels left standing in Aptos Village. It has survived multiple fires, including one as recent as 2022, which occurred on the first floor and was quickly contained.

It was named a California State Historic Monument in 1974 and later listed on the National Register of Historic Places in 1993; it features an expansive magnolia tree at its entrance and is rumored to be home to several elusive apparitions.

“In 33 years of doing this it was the first time I disclosed, for example, that multiple parties informed me that there are at least two ghosts in residence at the hotel,” said Khalsa.

The front door is also only a few large steps from the Santa Cruz Branch Rail Line, which was established a couple years before the hotel, in 1876. The hotel’s placement was strategic, as it helped attract the business of travelers moving from Watsonville to Santa Cruz, but it has since become a point of contention.

The rail corridor is owned by the Santa Cruz County Regional Transportation Commission, which is planning to construct a bicycle and pedestrian trail alongside the rail line as part of its Coastal Rail Trail project. Segment 12 of that project, scheduled to break ground in 2026, includes the Aptos Village region and could impact the parking area outside of the Bayview and neighboring businesses inside the Trout Gulch Crossing building, home to Norma Jean’s Coffee, Jet Set Bohemian and Caroline’s Thrift Store.

The transportation commission contends that the property deeds specify it has ownership of roughly half of the parking area closest to the tracks. However, Locke and the owners of the Trout Gulch Crossing parcel, Betty 41st LLC represented by Laurie Negro according to court documents, claim the parking area is rightfully theirs and losing it would impact necessary parking space for customers.

The transportation commission asked a Santa Cruz County Superior Court judge to resolve the dispute and filed a quiet title complaint last October. Locke and Betty 41st LLC have since filed cross complaints of their own and the litigation is still pending, according to the court’s website.

As evidenced by the buyer’s offer, the dispute did not appear to interfere with the hotel’s purchase and Khalsa pointed out that the Bayview has some unused land directly behind it that could fill its own parking deficit.

“Historically hotels were built, guess where? Right by the railroad depot,” said Khalsa.