Building Details

Building Size 13,342 SF

Year Built 1879

Listing Agency: North Bay Commercial Real Estate m***@nbcre.com Show Phone

Listed By: Michael Mazanec · License #CalDRE #1968962

Source: Nbcre

Added: Jun 7 Changed: Aug 26 Last Checked: Aug 29 at 8:50AM

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Investment Insights

Based on property information with market context.

This for-sale hospitality property is identified as the Union Hotel downtown Occidental. The offering is presented as a commercial hotel asset intended for lodging-focused use, with the property positioned as an operational base for a hospitality business.

The address is 3731 Main Street, Occidental, CA 95465, and it is located in Sonoma County. The provided directions reference Union Hotel downtown Occidental, aligning the site with the downtown core of the community.

For buyers, this property may fit an owner-operator seeking a hotel-style asset in Occidental, or an investor looking for a hospitality property in Sonoma County. Because the available information provided is limited to the property’s hotel identification and location details, prospective buyers and brokers should review the full offering materials for unit configuration, condition, and any operational or income details before making a decision.

Key Highlights

• Hotel‑style hospitality property in Occidental (Sonoma County)
• Ready‑to‑operate lodging‑focused base, described as hotel‑style hospitality
• Built in 1879

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

$161,605

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

6.60%

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%

$3,232,100 $3.2M

Cap Rate 7%

$2,308,643 $2.3M

Cap Rate 9%

$1,795,611 $1.8M

Market Conditions

NOI Build-Up for 13,342 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

$400.3K $30.00/SF

− Vacancy

−$60.0K −$4.50/SF

EGI

$340.2K $25.50/SF

− OpEx

−$178.6K −$13.39/SF

NOI

$161.6K $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%

$3,232,100

Cap Rate 7%

$2,308,643

Cap Rate 9%

$1,795,611

Alternative Uses

Best Use

Hotel Hospitality

$2.31M

$2.02M – $2.69M (±1% cap)

NOI $161,605 @ 7.0% cap · market cap 6.60%

Second Best

—

—

no second resolved use

Theoretical Best

Specialty Retail

$3.62M

$3.16M – $4.22M (±1% cap)

NOI $253,076 @ 7.0% cap · market cap 10.33%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Hotels

Suggested Use

Top Pick Building Supply Restaurant Spa & Massage Center (Bike/Boat/Book/etc) Store Home Appliance Store Plumbing Service

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

34

Businesses Nearby

Explore this area Business Placement

Demographics for 95472, CA

28,430

Population

12,595

Households

2.3

Avg Household Size

52

Median Age

50%

College-Educated

94%

High-School Grad

70.3 sq mi

ZIP Area

404

Density / Sq Mi

$109,775

Median Household Income

$50,097

Median Earnings

$1,918

Median Rent

$995,200

Median Home Value

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Hotel - For sale in Occidental, this hotel-style hospitality property offers a ready-to-operate base for lodging-focused operators.

Where is this hotel located?

The property is located at 3731 Main St. Occidental, CA.

What is the asking price?

The asking price for this property is $2,450,000.

What are key features of this property?

This property features: Hotel‑style hospitality property in Occidental (Sonoma County); Ready‑to‑operate lodging‑focused base, described as hotel‑style hospitality; Built in 1879