Building Details

Year Built 1876

Year Renovated 2020

Buildings 2

Stories 2

Units 2

Listing Agency: North Bay Commercial Real Estate d***@nbcre.com Show Phone

Listed By: Dale Dockins · License #CA BR555128000

Source: Crexi

Added: Feb 26, 2024 Changed: Aug 8 Last Checked: May 12 at 10:59PM

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Investment Insights

Based on property information with market context.

Located in downtown Occidental, between Sebastopol and the Coast, this property presents an opportunity for restaurant or retail use. The real estate sale can include restaurant equipment at an additional cost. The property offers additional rental income from a neighboring retail space of approximately 1,167 square feet. The property size is 3,246 square feet.

Key Highlights

• Prime downtown Occidental location, ideal for restaurant or retail.
• Opportunity to acquire existing restaurant equipment (at additional cost).
• Additional rental income potential from neighboring retail space.

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

$61,571

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

4.83%

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%

$1,231,420 $1.2M

Cap Rate 7%

$879,586 $879.6K

Cap Rate 9%

$684,122 $684.1K

Market Conditions

NOI Build-Up for 3,246 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

$85.7K $26.40/SF

− Vacancy

−$3.6K −$1.11/SF

EGI

$82.1K $25.29/SF

− OpEx

−$20.5K −$6.32/SF

NOI

$61.6K $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%

$1,231,420

Cap Rate 7%

$879,586

Cap Rate 9%

$684,122

Alternative Uses

Best Use

Specialty Retail

$879.6K

$769.6K – $1.03M (±1% cap)

NOI $61,571 @ 7.0% cap · market cap 4.83%

Second Best

—

—

no second resolved use

Theoretical Best

—

—

same as Best Use

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Restaurants

Suggested Use

Top Pick Parking Lot & Garage Garden Center (Bike/Boat/Book/etc) Store Real Estate Agency Building Supply Catering Service

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

141

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 95465, CA

1,959

Population

1,012

Households

1.9

Avg Household Size

56

Median Age

53%

College-Educated

96%

High-School Grad

48.1 sq mi

ZIP Area

41

Density / Sq Mi

$123,650

Median Household Income

$75,045

Median Earnings

$1,820

Median Rent

$1,122,500

Median Home Value

Market

Vacancy Rate% for Retail in West region

7% 2020

6.3% 2021

5.5% 2022

5.3% 2023

5.5% 2024

5.8% 2025

Questions? Ask Rey

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What type of property is this? Where is this restaurants located? What is the asking price? Find similar properties ... What are key features of this property?

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Similar Off Market Nearby

• Gerard's Paella Catering — Occidental, CA 95465

Frequently Asked Questions

What type of property is this?

Restaurant - Restaurant or retail opportunity in downtown Occidental.

Where is this restaurant located?

The property is located at 3688 Bohemian Hwy Occidental, CA.

What is the asking price?

The asking price for this property is $1,275,000.

What are key features of this property?

This property features: Prime downtown Occidental location, ideal for restaurant or retail.; Opportunity to acquire existing restaurant equipment (at additional cost).; Additional rental income potential from neighboring retail space.