Two-Story Mixed-Use Commercial
For Sale
Contact for pricing
589 Mendocino Ave, Santa Rosa, CA 95401
Two-floor commercial building with a first-floor fitness studio and second-floor office suite, plus two separate entrances.
Property Size8,242 SF
Price / SF$197.16
Days on Market157
Property Features for 589 Mendocino Ave
General Information
Standard status
Active
Size
8,242 SF
Property subtype
Retail, Office, Mixed Use
Zoning
CMU - Core Mixed Use
Investment Type
Owner/User
Building Details
Year Built
1978
Stories
2
Tenancy
Multi
Listing Agency:
Keegan & Coppin Co. Petaluma
Listed By:
Summer Jager · License #02222063
(707) 664-1400
Source:
Crexi
Added: Apr 3
Changed: Sep 2
Last Checked: Sep 6 at 12:10AM
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 Keegan & Coppin Co. Petaluma
Investment Insights
Based on property information with market context.
589 Mendocino Avenue is a two-story commercial property totaling 8,242+/- SF, arranged with a built-out fitness studio on the first floor and private office space on the second floor. The first floor includes two studio rooms, a reception and retail area, a private room, and two restrooms, one with a shower. The second floor provides 4,126+/- SF configured as private offices with a waiting area, common area restrooms, and a kitchenette, with flexibility to occupy the entire level or subdivide it.
The building benefits from prominent signage exposure and an expansive storefront window line along Mendocino Avenue. There are two separate entrances, including one fronting Mendocino Avenue and another accessible from the rear parking lot.
Overall, the layout supports an owner-user configuration or potential lease arrangements between levels, with visibility and entry points on both the street and rear parking area.
The building benefits from prominent signage exposure and an expansive storefront window line along Mendocino Avenue. There are two separate entrances, including one fronting Mendocino Avenue and another accessible from the rear parking lot.
Overall, the layout supports an owner-user configuration or potential lease arrangements between levels, with visibility and entry points on both the street and rear parking area.
Key Highlights
- Two‑floor commercial building with 8,242+/- SF total space across 1st and 2nd floors
- First floor (4,116+/- SF) is built out as a fully operational fitness studio with two studio rooms, reception/retail area, private room, and two restrooms (one with a shower)
- Second floor (4,126+/- SF) features private offices with a waiting area, common area restrooms, and a kitchenette; can be occupied fully or subdivided
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
$116,370
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
7.16%
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%
$2,327,400
$2.3M
Cap Rate 7%
$1,662,429
$1.7M
Cap Rate 9%
$1,293,000
$1.3M
Market Conditions
NOI Build-Up for 8,242 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
$183.0K $22.20/SF
− Vacancy
−$27.8K −$3.37/SF
EGI
$155.2K $18.83/SF
− OpEx
−$38.8K −$4.71/SF
NOI
$116.4K $14.12/SF
Area
Santa Rosa, CA
Vacancy
15.20%
Lease Rate
$22.20 /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%
$2,327,400
Cap Rate 7%
$1,662,429
Cap Rate 9%
$1,293,000
Alternative Uses
Best Use
Office B
$1.66M
$1.45M – $1.94M
NOI $116,370 @ 7.0% cap · market cap 7.16%
Second Best
Retail
$1.28M
$1.12M – $1.50M
NOI $89,758 @ 7.0% cap · market cap 5.52%
Theoretical Best
Multifamily LT 5
$2.29M
$2.00M – $2.67M
NOI $160,291 @ 7.0% cap · market cap 9.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,126
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95401, CA
37,272
Population
14,281
Households
2.6
Avg Household Size
38
Median Age
28%
College-Educated
80%
High-School Grad
20.9 sq mi
ZIP Area
1,783
Density / Sq Mi
$93,513
Median Household Income
$45,630
Median Earnings
$1,978
Median Rent
$628,900
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Fitness center & gym - Two-floor commercial building with a first-floor fitness studio and second-floor office suite, plus two separate entrances.
Where is this fitness center & gym located?
The property is located at 589 Mendocino Ave Santa Rosa, CA.
What is the asking price?
The asking price for this property is $1,625,000.
What are key features of this property?
This property features: Two‑floor commercial building with 8,242+/- SF total space across 1st and 2nd floors; First floor (4,116+/- SF) is built out as a fully operational fitness studio with two studio rooms, reception/retail area, private room, and two restrooms (one with a shower); Second floor (4,126+/- SF) features private offices with a waiting area, common area restrooms, and a kitchenette; can be occupied fully or subdivided
