1200 Sonoma Ave Santa Rosa, CA 95405

The offering includes two properties: an 8,725 square foot unoccupied shell building at 1200 Sonoma Avenue, situated on a 58,806 square foot lot, featuring stud wall framing and permitted for custom office use, with potential for multi-family development via a use permit; and a 3,930 square foot fully leased medical office building at 1210 Sonoma Avenue, located on a 1.35 acre parcel with 55 parking spaces, ADA compliance, and a strong in-place tenancy (Sutter Bay Medical Foundation). Several comparable office buildings in Santa Rosa have been successfully converted to multi-family residential, suggesting a viable repositioning strategy for the 1200 building. Analysis evaluates retaining both properties as office use or converting 1200 to multi-family (with 1210 remaining medical office). It factors in a 24-month stabilization period, depreciation, rental income, vacancy rates, operating expenses, reserves, improvement costs, purchase price, 50 percent loan-to-value debt service, Year 1 and 7-year pre- and post-tax cash-on-cash returns with sale, a 10-year hold without sale, and taxes on sale proceeds (27 percent capital gains, 25 percent depreciation recapture).