Unique Commercial Property with Development
For Sale
$1,050,000
6675 Petersen, Petaluma, CA 94952
Serene commercial property with warehouse and residential development potential.
Property Size4,856 SF
Price / SF$216.23
Days on Market392
Property Features for 6675 Petersen
General Information
Standard status
Active
Size
4,856 SF
Building Details
Year Built
1950
Listing Agency:
KEEGAN & COPPIN COMPANY, INC
5281400
Listed By:
STEVEN R GORDON
Source:
Corcoran
Added: Aug 4, 2025
Changed: Mar 16
Last Checked: Mar 16 at 9:09AM
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 COMPANY, INC
Investment Insights
Based on property information with market context.
This commercial property, situated in a wooded setting between Petaluma and Sebastopol, offers privacy and potential. Accessed via a gated private driveway, the property includes a warehouse with an adjacent parking lot that can be adapted for storage, light industrial use, or a creative workspace. The warehouse requires some renovations, but essential infrastructure such as a well and septic system are already in place, along with approximately 20 paved parking spaces. The parcel is divided into two levels: the lower area contains the main commercial space, while the upper tier offers an opportunity for residential development. According to the planning department, the site generally allows for one primary residence, an attached accessory dwelling unit (ADU), and a detached ADU, allowing for a total of three structures. This setup is suited for a live/work compound, a rural retreat, or a combination of income-producing units. Surrounded by trees and set back from the main road, the 4856 square foot property provides a private setting for business and residential plans.
Key Highlights
- Potential for residential development with allowances for a primary residence, attached ADU, and detached ADU (three total structures allowed).
- Versatile commercial property suitable for storage, light industrial, or creative workspace.
- Private, wooded setting between Petaluma and Sebastopol.
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
$86,967
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
8.28%
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%
$1,739,340
$1.7M
Cap Rate 7%
$1,242,386
$1.2M
Cap Rate 9%
$966,300
$966.3K
Market Conditions
NOI Build-Up for 4,856 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
$110.1K $22.68/SF
− Vacancy
−$7.8K −$1.61/SF
EGI
$102.3K $21.07/SF
− OpEx
−$15.3K −$3.16/SF
NOI
$87.0K $17.91/SF
Area
Sonoma County, CA
Vacancy
7.10%
Lease Rate
$22.68 /SF/Yr
Expense Ratio
15.00%
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%
$1,739,340
Cap Rate 7%
$1,242,386
Cap Rate 9%
$966,300
Alternative Uses
Best Use
Warehouse
$1.24M
$1.09M – $1.45M
NOI $86,967 @ 7.0% cap · market cap 8.28%
Second Best
Industrial
$1.02M
$895.3K – $1.19M
NOI $71,620 @ 7.0% cap · market cap 6.82%
Theoretical Best
Specialty Retail
$1.32M
$1.15M – $1.54M
NOI $92,111 @ 7.0% cap · market cap 8.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
26
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 94952, CA
33,619
Population
14,794
Households
2.3
Avg Household Size
45
Median Age
47%
College-Educated
92%
High-School Grad
198.5 sq mi
ZIP Area
169
Density / Sq Mi
$115,097
Median Household Income
$56,650
Median Earnings
$2,272
Median Rent
$1,016,800
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - Serene commercial property with warehouse and residential development potential.
Where is this warehouse located?
The property is located at 6675 Petersen Petaluma, CA.
What is the asking price?
The asking price for this property is $1,050,000.
What are key features of this property?
This property features: Potential for residential development with allowances for a primary residence, attached ADU, and detached ADU (three total structures allowed).; Versatile commercial property suitable for storage, light industrial, or creative workspace.; Private, wooded setting between Petaluma and Sebastopol.
