Mixed-Use Property with Development
New
For Sale
$6,150,000
7874 Old Redwood Hwy, Cotati, CA 94931
Combines garden-style apartments, leased commercial suites, and an adjoining commercially zoned parcel.
Property Size27,490 SF
Lot Size2.62 Acres
Price / SF$223.72
Days on Market7
Property Features for 7874 Old Redwood Hwy
General Information
Standard status
Active
Size
27,490 SF
Lot size
2.62 Acres
Property subtype
Mixed-Use
Occupancy
100%
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Cap Rate
7.09%
Multifamily Units
32
Amenities
Highly Desirable Cotati Location
Walk to Downtown, Dining, Shopping, Transportation and Employment. One-Mile to Smart Train
Outstanding Rental History, Attractive Retail Environment
Includes an undeveloped, separate parcel of approximately .87 acres
Significant Rental Upside
Immediate Access to Highway 101 With Over 125,000 Cars Per Day
7.09% CAP Rate; Development Potential
Building Details
Building Size
27,490 SF
Buildings
5
Units
36
Tenancy
Multi
Listing Agency:
San Francisco Office
(415) 625-2146
Listed By:
Erich Reichenbach · License #License(s): CA: 01860626
(415) 625-2146
Source:
Marcusmillichap
Added: Aug 23
Changed: Aug 28
Last Checked: Aug 29 at 5:52AM
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 San Francisco Office
Investment Insights
Based on property information with market context.
This mixed-use property in Cotati, California, includes 32 garden-style apartment homes and five commercial suites across five buildings totaling approximately 27,490 square feet. The improvements occupy approximately 1.75 acres, while the offering also includes an adjoining 0.87-acre parcel designated for commercial use. The commercial component is fully leased, adding a separate income-producing element to the residential units.
The combined property covers approximately 2.62 acres along Old Redwood Highway at 7874 Old Redwood Hwy. It is located less than one-quarter mile from Downtown Cotati and next to Rohnert Park. The additional parcel may support future development or expansion subject to applicable planning approvals.
The combined property covers approximately 2.62 acres along Old Redwood Highway at 7874 Old Redwood Hwy. It is located less than one-quarter mile from Downtown Cotati and next to Rohnert Park. The additional parcel may support future development or expansion subject to applicable planning approvals.
Key Highlights
- 32 garden‑style apartment homes
- Five fully leased commercial suites
- Five buildings totaling approximately 27,490 square feet
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
$362,868
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
5.90%
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%
$7,257,360
$7.3M
Cap Rate 7%
$5,183,829
$5.2M
Cap Rate 9%
$4,031,867
$4.0M
Market Conditions
NOI Build-Up for 27,490 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
$659.8K $24.00/SF
− Vacancy
−$79.2K −$2.88/SF
EGI
$580.6K $21.12/SF
− OpEx
−$217.7K −$7.92/SF
NOI
$362.9K $13.20/SF
Area
Sonoma County, CA
Vacancy
12.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
37.50%
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%
$7,257,360
Cap Rate 7%
$5,183,829
Cap Rate 9%
$4,031,867
Alternative Uses
Best Use
Mixed Use
$5.18M
$4.54M – $6.05M
NOI $362,868 @ 7.0% cap · market cap 5.90%
Second Best
Retail
$3.59M
$3.14M – $4.18M
NOI $250,990 @ 7.0% cap · market cap 4.08%
Theoretical Best
Specialty Retail
$7.45M
$6.52M – $8.69M
NOI $521,441 @ 7.0% cap · market cap 8.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
32
Residential units
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
835
Businesses Nearby
Explore this area
Business Placement
Demographics for 94931, CA
9,119
Population
4,244
Households
2.1
Avg Household Size
40
Median Age
39%
College-Educated
97%
High-School Grad
7.7 sq mi
ZIP Area
1,184
Density / Sq Mi
$103,105
Median Household Income
$59,605
Median Earnings
$1,780
Median Rent
$788,200
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Combines garden-style apartments, leased commercial suites, and an adjoining commercially zoned parcel.
Where is this mixed-use property located?
The property is located at 7874 Old Redwood Hwy Cotati, CA.
What is the asking price?
The asking price for this property is $6,150,000.
What are key features of this property?
This property features: 32 garden‑style apartment homes; Five fully leased commercial suites; Five buildings totaling approximately 27,490 square feet
