Redwood Highway Investment
For Sale
Contact for pricing
Pending
8225 Old Redwood Hwy, Cotati, CA 94931
Commercial property with income potential and future development possibilities.
Property Size5,283 SF
Days on Market204
Property Features for 8225 Old Redwood Hwy
General Information
Standard status
Pending
Size
5,283 SF
Property subtype
Retail
Occupancy
100%
Building Details
Buildings
3
Units
5
Listing Agency:
Keegan & Coppin Co. Santa Rosa
(707) 889-3577
Listed By:
Kevin Doran · License #CA 01704987
Source:
Crexi
Added: Jan 30
Changed: Aug 12
Last Checked: Aug 22 at 2:39PM
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. Santa Rosa
Investment Insights
Based on property information with market context.
This commercial property presents an opportunity for either an owner-user or an investment development. The property is fully leased and generates income from 5 commercial tenants. Located along the 101 Corridor, the property offers convenient freeway accessibility. On-site parking is available with 30 spaces. The property features three access points of entry, one on the west side and two on the south side. There is potential for development in the near future. The city may invest incentives to deliver the property with three stories, including retail on the ground floor and multifamily apartments on the 2nd and 3rd floors. The property contains 5,283 square feet.
Key Highlights
- Excellent development opportunity with potential city incentives for a three‑story building (retail/multifamily).
- Fully leased investment property with income from 5 commercial tenants.
- Well‑located on the 101 Corridor, providing excellent freeway accessibility.
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
$48,235
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
2.85%
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%
$964,700
$964.7K
Cap Rate 7%
$689,071
$689.1K
Cap Rate 9%
$535,944
$535.9K
Market Conditions
NOI Build-Up for 5,283 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
$74.2K $14.04/SF
− Vacancy
−$5.3K −$1.00/SF
EGI
$68.9K $13.04/SF
− OpEx
−$20.7K −$3.91/SF
NOI
$48.2K $9.13/SF
Area
Sonoma County, CA
Vacancy
7.10%
Lease Rate
$14.04 /SF/Yr
Expense Ratio
30.00%
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%
$964,700
Cap Rate 7%
$689,071
Cap Rate 9%
$535,944
Alternative Uses
Best Use
Retail
$689.1K
$602.9K – $803.9K
NOI $48,235 @ 7.0% cap · market cap 2.85%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.43M
$1.25M – $1.67M
NOI $100,210 @ 7.0% cap · market cap 5.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
707
Businesses Nearby
33k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 62%
Dining 38%
Chevron
Shops & Services
13,796 visits/mo
0.4 miles
Peet's Coffee & Tea
Dining
8,595 visits/mo
0.4 miles
Speedway
Shops & Services
6,785 visits/mo
0.2 miles
Papa Murphy's
Dining
2,335 visits/mo
0.1 miles
Sal's Pizza
Dining
1,951 visits/mo
0.2 miles
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 Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Commercial property with income potential and future development possibilities.
Where is this retail space located?
The property is located at 8225 Old Redwood Hwy Cotati, CA.
What is the asking price?
The asking price for this property is $1,690,000.
What are key features of this property?
This property features: Excellent development opportunity with potential city incentives for a three‑story building (retail/multifamily).; Fully leased investment property with income from 5 commercial tenants.; Well‑located on the 101 Corridor, providing excellent freeway accessibility.
