Renovated Santa Rosa Investment
For Sale
$2,500,000
4019 Sebastopol Rd, Santa Rosa, CA 94583
Renovated 14,500 SF property with strong income and development potential.
Property Size14,500 SF
Price / SF$172.41
Days on Market273
Property Features for 4019 Sebastopol Rd
General Information
Standard status
Active
Size
14,500 SF
Property subtype
RETAIL
Net Operating Income
$125,621
Building Details
Building Size
14,500 SF
Listing Agency:
SVN | MG Property Advisors, Inc.
(415) 516-1863
Listed By:
Gary Gustafson · License #CalDRE #00414569
(415) 516-1863
Source:
Svn
Added: Nov 21, 2025
Changed: Aug 8
Last Checked: Aug 21 at 5:15AM
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 SVN | MG Property Advisors, Inc.
Investment Insights
Based on property information with market context.
Located in Santa Rosa, California, this renovated 14,500 square foot industrial property features 4 units and is currently 100% occupied. The property is zoned CG / R18, offering versatile development options, including potential for small lot R-1 subdivision or multi-family development. The lease agreement includes termination by lessor clauses. The property generates an annual income of $153,600 with rent escalators and projected 2024-25 annual gross rents of $160,000. It is situated in a bustling area of residential growth with access to key amenities, near the Luther Burbank Center for the Arts, Tex Wasabi's, and Cooperage Brewing Company. Its proximity to Highway 12 and Santa Rosa's downtown hub makes it an attractive opportunity for residential / multi family developers / investors seeking a strategic foothold in this thriving market. This low-maintenance property offers excellent long-term growth potential.
Key Highlights
- 100% occupancy with a strong annual income of $153,600 and projected rent escalators.
- Zoned CG / R18, offering versatile development options including potential for small lot R‑1 subdivision or multi‑family development.
- Prime Santa Rosa location near Highway 12 and downtown, with access to key amenities and cultural landmarks.
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
$157,909
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
6.32%
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%
$3,158,180
$3.2M
Cap Rate 7%
$2,255,843
$2.3M
Cap Rate 9%
$1,754,544
$1.8M
Market Conditions
NOI Build-Up for 14,500 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
$247.1K $17.04/SF
− Vacancy
−$21.5K −$1.48/SF
EGI
$225.6K $15.56/SF
− OpEx
−$67.7K −$4.67/SF
NOI
$157.9K $10.89/SF
Area
Santa Rosa, CA
Vacancy
8.70%
Lease Rate
$17.04 /SF/Yr
Expense Ratio
30.00%
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%
$3,158,180
Cap Rate 7%
$2,255,843
Cap Rate 9%
$1,754,544
Alternative Uses
Best Use
Retail
$2.26M
$1.97M – $2.63M
NOI $157,909 @ 7.0% cap · market cap 6.32%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$4.03M
$3.52M – $4.70M
NOI $281,997 @ 7.0% cap · market cap 11.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
196
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 94583, CA
38,444
Population
14,208
Households
2.7
Avg Household Size
41
Median Age
64%
College-Educated
97%
High-School Grad
21.2 sq mi
ZIP Area
1,813
Density / Sq Mi
$184,033
Median Household Income
$97,697
Median Earnings
$2,973
Median Rent
$1,234,400
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
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Frequently Asked Questions
What type of property is this?
Shopping center - Renovated 14,500 SF property with strong income and development potential.
Where is this shopping center located?
The property is located at 4019 Sebastopol Rd Santa Rosa, CA.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: 100% occupancy with a strong annual income of $153,600 and projected rent escalators.; Zoned CG / R18, offering versatile development options including potential for small lot R‑1 subdivision or multi‑family development.; Prime Santa Rosa location near Highway 12 and downtown, with access to key amenities and cultural landmarks.
