Unique Hospitality Property with
For Sale
$1,999,999
Pending
5186 Hwy 116 S, Sebastopol, CA 95472
Charming farmhouse and tavern on 5 acres for sale.
Property Size4,400 SF
Lot Size5.00 Acres
Days on Market207
Property Features for 5186 Hwy 116 S
General Information
Standard status
Pending
Size
4,400 SF
Lot size
5.00 Acres
Property subtype
Commercial
Amenities
Auto Sprinkler Rear
Grass Artificial
Landscape Back
Landscape Front
Landscape Misc
Shingle Roof
Listing Agency:
ARTISAN SOTHEBY'S INT'L REALTY
2841111
Listed By:
ROSEMARIE CORRIGAN · License #00880048
Source:
Corcoran
Added: Jan 27
Changed: Aug 8
Last Checked: Jul 23 at 9:28AM
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 ARTISAN SOTHEBY'S INT'L REALTY
Investment Insights
Based on property information with market context.
This unique property features a 4-bedroom, 2-bath farmhouse with a wraparound deck, alongside a tavern building equipped with a commercial kitchen, bar, and lounge area. The property includes almost 13,000 square feet of lawn and deck space suitable for events. Several small outbuildings provide storage, and there is also a barn that could be restored. Situated on two APNs totaling 5 acres, which might be delivered separately, the property has been used as various hospitality and special event venues since the 1960s. The house has served as a successful vacation rental and is often rented for occupancy during events. The gardens are notable, featuring a labyrinth and heritage roses. Artificial grass has been installed on the large wedding lawn and the reception lawn to simplify maintenance. The property is located in Sebastopol, CA and offers potential for various ventures, including daycare, a dog bar, artistic pursuits, a school, a family compound, nursery, or museum.
Key Highlights
- Unique property featuring a farmhouse and separate Tavern building with a commercial kitchen, bar, and lounge.
- Large event space: 13,000 sq ft of lawns and deck areas, perfect for gatherings.
- Two APNs totaling 5 acres, potentially divisible for future development.
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
$83,461
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
4.17%
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%
$1,669,220
$1.7M
Cap Rate 7%
$1,192,300
$1.2M
Cap Rate 9%
$927,344
$927.3K
Market Conditions
NOI Build-Up for 4,400 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
$116.2K $26.40/SF
− Vacancy
−$4.9K −$1.11/SF
EGI
$111.3K $25.29/SF
− OpEx
−$27.8K −$6.32/SF
NOI
$83.5K $18.97/SF
Area
Sonoma County, CA
Vacancy
4.20%
Lease Rate
$26.40 /SF/Yr
Expense Ratio
25.00%
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%
$1,669,220
Cap Rate 7%
$1,192,300
Cap Rate 9%
$927,344
Alternative Uses
Best Use
Specialty Retail
$1.19M
$1.04M – $1.39M
NOI $83,461 @ 7.0% cap · market cap 4.17%
Second Best
Hotel Hospitality
$761.4K
$666.2K – $888.3K
NOI $53,295 @ 7.0% cap · market cap 2.66%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
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
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hospitality property - Charming farmhouse and tavern on 5 acres for sale.
Where is this hospitality property located?
The property is located at 5186 Hwy 116 S Sebastopol, CA.
What is the asking price?
The asking price for this property is $1,999,999.
What are key features of this property?
This property features: Unique property featuring a farmhouse and separate Tavern building with a commercial kitchen, bar, and lounge.; Large event space: 13,000 sq ft of lawns and deck areas, perfect for gatherings.; Two APNs totaling 5 acres, potentially divisible for future development.
