Cottage-Style Apartment
For Sale
$6,250,000
1855-1875 Petaluma Hill Road Santa, Santa Rosa, CA 95404
A 39-unit community primarily comprising separate cottage residences rather than conventional shared-wall apartments.
Property Size16,429 SF
Days on Market46
Property Features for 1855-1875 Petaluma Hill Road Santa
General Information
Standard status
Active
Size
16,429 SF
Property subtype
Multi-Family
Amenities
Wall Furnace
Composition, Shingle
Building Details
Building Size
16,429 SF
Year Built
1939
Listing Agency:
Berkshire Hathaway
(415) 747-2150
Listed By:
Steven Level · License #01184232
Source:
Kw
Added: Jul 17
Changed: Aug 31
Last Checked: Aug 31 at 12:46AM
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 Berkshire Hathaway
Investment Insights
Based on property information with market context.
This apartment property contains 39 units across more than two acres, with a mix of individual cottage residences and a single-family home. The configuration includes one 3-bedroom, 2-bath home, one 3-bedroom cottage, four 2-bedroom units, thirteen 1-bedroom units, and twenty studios. Most residences are detached from one another, providing a layout distinct from a traditional shared-wall apartment building.
Property improvements include an on-site laundry room connected to a workshop and office, three storage buildings, a utility structure, and on-site parking. Built in 1939, the buildings feature composition shingle exteriors and wall furnaces. The property is located on Petaluma Hill Road in Santa Rosa, California.
Property improvements include an on-site laundry room connected to a workshop and office, three storage buildings, a utility structure, and on-site parking. Built in 1939, the buildings feature composition shingle exteriors and wall furnaces. The property is located on Petaluma Hill Road in Santa Rosa, California.
Key Highlights
- 39‑unit apartment property spanning more than two acres
- Unit mix includes 20 studios, 13 one‑bedroom units, 4 two‑bedroom units, and 2 three‑bedroom residences
- Most residences are individual cottages without shared walls
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
$286,970
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
4.59%
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%
$5,739,400
$5.7M
Cap Rate 7%
$4,099,571
$4.1M
Cap Rate 9%
$3,188,556
$3.2M
Market Conditions
NOI Build-Up for 16,429 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
$548.1K $33.36/SF
− Vacancy
−$26.3K −$1.60/SF
EGI
$521.8K $31.76/SF
− OpEx
−$234.8K −$14.29/SF
NOI
$287.0K $17.47/SF
Area
Santa Rosa, CA
Vacancy
4.80%
Lease Rate
$33.36 /SF/Yr
Expense Ratio
45.00%
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%
$5,739,400
Cap Rate 7%
$4,099,571
Cap Rate 9%
$3,188,556
Alternative Uses
Best Use
Apartment 5plus
$4.10M
$3.59M – $4.78M
NOI $286,970 @ 7.0% cap · market cap 4.59%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$4.56M
$3.99M – $5.33M
NOI $319,513 @ 7.0% cap · market cap 5.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
729
Businesses Nearby
Explore this area
Business Placement
Demographics for 95404, CA
38,034
Population
16,850
Households
2.3
Avg Household Size
43
Median Age
45%
College-Educated
90%
High-School Grad
75.4 sq mi
ZIP Area
504
Density / Sq Mi
$102,802
Median Household Income
$57,388
Median Earnings
$1,890
Median Rent
$865,900
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Apartment building - A 39-unit community primarily comprising separate cottage residences rather than conventional shared-wall apartments.
Where is this apartment building located?
The property is located at 1855-1875 Petaluma Hill Road Santa Santa Rosa, CA.
What is the asking price?
The asking price for this property is $6,250,000.
What are key features of this property?
This property features: 39‑unit apartment property spanning more than two acres; Unit mix includes 20 studios, 13 one‑bedroom units, 4 two‑bedroom units, and 2 three‑bedroom residences; Most residences are individual cottages without shared walls
