Petaluma Office Building Investment
For Sale
$2,725,000
111 Lynch Creek Way, Petaluma, CA 94954
Triple Net leased investment property anchored by a credit tenant.
Property Size7,184 SF
Price / SF$379.32
Days on Market275
Property Features for 111 Lynch Creek Way
General Information
Standard status
Active
Size
7,184 SF
Class
B
Property subtype
Office
Building Details
Building Size
7,184 SF
Listing Agency:
Ground Matrix
(707) 570-7802
Listed By:
Jerry Adamson · License #CalDRE #01935945
Source:
Groundmatrix
Added: Nov 21, 2025
Changed: Aug 9
Last Checked: Aug 23 at 2:45AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Ground Matrix
Investment Insights
Based on property information with market context.
111 Lynch Creek Way presents an opportunity to acquire a Triple Net leased investment. The property is leased to AAA of Northern California, Nevada & Utah until June 30th, 2024, with options to continue the lease until June 30th, 2026. The property is located off of North McDowell Boulevard, near the Deer Creek Shopping Mall, which hosts retailers such as Friedman’s Home Improvement, Mary’s Pizza Shack, Habit Burger, Dunkin’ Coffee, Smart & Final, Davita, and Exchange Bank. Other retailers within one mile include Raley’s, Trader Joes, Petco, McDonalds, Big 5 Sporting Goods, Starbucks and Petaluma Valley Hospital. The property is a single-user building with parking that includes 40 uncovered stalls, 3 covered stalls and 2 handicap stalls. The building features a mostly open floor plan with a reception and customer service counter, four private meeting rooms or offices, a break room with stovetop and outdoor patio space, multi-stall Men’s and Women’s restrooms, a storage room and telecom room. The property also features high ceilings and natural light throughout the space and full HVAC. The property size is 7,184 square feet.
Key Highlights
- Triple Net leased investment with a credit tenant (AAA).
- Lease in place until June 30th, 2024, with options to extend until June 30th, 2026.
- Upside potential through annual rent escalations and below‑market rates.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$101,432
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.72%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,028,640
$2.0M
Cap Rate 7%
$1,449,029
$1.4M
Cap Rate 9%
$1,127,022
$1.1M
Market Conditions
NOI Build-Up for 7,184 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$159.5K $22.20/SF
− Vacancy
−$24.2K −$3.37/SF
EGI
$135.2K $18.83/SF
− OpEx
−$33.8K −$4.71/SF
NOI
$101.4K $14.12/SF
Area
Sonoma County, CA
Vacancy
15.20%
Lease Rate
$22.20 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,028,640
Cap Rate 7%
$1,449,029
Cap Rate 9%
$1,127,022
Alternative Uses
Best Use
Office B
$1.45M
$1.27M – $1.69M
NOI $101,432 @ 7.0% cap · market cap 3.72%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.95M
$1.70M – $2.27M
NOI $136,269 @ 7.0% cap · market cap 5.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,161
Businesses Nearby
Explore this area
Business Placement
Demographics for 94954, CA
38,301
Population
15,147
Households
2.5
Avg Household Size
43
Median Age
37%
College-Educated
92%
High-School Grad
62.2 sq mi
ZIP Area
616
Density / Sq Mi
$107,564
Median Household Income
$58,362
Median Earnings
$2,405
Median Rent
$790,100
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Triple Net leased investment property anchored by a credit tenant.
Where is this office building located?
The property is located at 111 Lynch Creek Way Petaluma, CA.
What is the asking price?
The asking price for this property is $2,725,000.
What are key features of this property?
This property features: Triple Net leased investment with a credit tenant (AAA).; Lease in place until June 30th, 2024, with options to extend until June 30th, 2026.; Upside potential through annual rent escalations and below‑market rates.
