Petaluma Motel with Community
For Sale
Contact for pricing
1368 N McDowell Blvd, Petaluma, CA 94954
122-room motel in Petaluma near Highway 101.
Property Size81,682 SF
Lot Size2.59 Acres
Price / SF$171.40
Days on Market101
Property Features for 1368 N McDowell Blvd
General Information
Standard status
Active
Size
81,682 SF
Lot size
2.59 Acres
Property subtype
Hospitality
Zoning
BP - Business Park
Investment Type
Value Add
Net Operating Income
$850,294
Building Details
Year Built
1983
Listing Agency:
Marcus & Millichap - Palo Alto
(650) 391-1700
Listed By:
Robert Johnston · License #01853816
Source:
Crexi
Added: May 21
Changed: Aug 8
Last Checked: Aug 26 at 11:53AM
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 Marcus & Millichap - Palo Alto
Investment Insights
Based on property information with market context.
Located in Petaluma, California, 1368 N McDowell Blvd is a 122-room motel situated on a 2.59-acre parcel. Constructed in 1983, the property features approximately 81,682 square feet of living area. The motel offers on-site amenities including private parking, laundry facilities, and a community pool. Petaluma is known for its food scene and access to employers such as Amy's Kitchen, Petaluma Valley Hospital, Clover Sonoma, Labcon, Lagunitas Brewing, and the Petaluma School District. The property is located near U.S. Highway 101 and California State Route 37, providing connectivity throughout Sonoma, Marin, and the Bay Area. The location in Sonoma County provides access to employers, transportation, and amenities.
Key Highlights
- 122‑room motel in Petaluma, CA, a thriving city.
- Expansive 2.59‑acre property with approximately 81,682 square feet of living area.
- Convenient on‑site amenities including private parking, laundry, and a community pool.
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
$989,373
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
7.07%
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%
$19,787,460
$19.8M
Cap Rate 7%
$14,133,900
$14.1M
Cap Rate 9%
$10,993,033
$11.0M
Market Conditions
NOI Build-Up for 81,682 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
$2.45M $30.00/SF
− Vacancy
−$367.6K −$4.50/SF
EGI
$2.08M $25.50/SF
− OpEx
−$1.09M −$13.39/SF
NOI
$989.4K $12.11/SF
Area
Sonoma County, CA
Vacancy
15.00%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
52.50%
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%
$19,787,460
Cap Rate 7%
$14,133,900
Cap Rate 9%
$10,993,033
Alternative Uses
Best Use
Hotel Hospitality
$14.13M
$12.37M – $16.49M
NOI $989,373 @ 7.0% cap · market cap 7.07%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$22.13M
$19.37M – $25.82M
NOI $1,549,377 @ 7.0% cap · market cap 11.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
993
Businesses Nearby
Well-served
Demand for This Use
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
Questions? Ask Rey
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Similar Off Market Nearby
- Home2 Suites by Hilton Petaluma — 1205 Redwood Way, Petaluma, CA 94954
- Parkwest Casino Sonoma — 5151 Montero Way, Petaluma, CA 94954
- Motel 6 Petaluma, CA — 1368 N McDowell Blvd, Petaluma, CA 94954
- Quality Inn Petaluma - Sonoma — 5100 Montero Way, Petaluma, CA 94954
- Petaluma Valley Inn — 5135 Montero Way, Petaluma, CA 94954
Frequently Asked Questions
What type of property is this?
Motel - 122-room motel in Petaluma near Highway 101.
Where is this motel located?
The property is located at 1368 N McDowell Blvd Petaluma, CA.
What is the asking price?
The asking price for this property is $14,000,000.
What are key features of this property?
This property features: 122‑room motel in Petaluma, CA, a thriving city.; Expansive 2.59‑acre property with approximately 81,682 square feet of living area.; Convenient on‑site amenities including private parking, laundry, and a community pool.
