150 & 170 Professional Center Drive, Rohnert Park, CA
Value-Add and Infill Industrial
Acquired in January 2025

Two warehouse buildings totaling approximately 40,725 SF on 129,373 SF (2.97 acres) of land; 31% coverage.

Located in the desirable Sonoma County city of Rohnert Park, the property conveniently sits a half mile from Highway 101 on and off ramps in both directions and is just 45 miles north of San Francisco.

The purchase price of $153 per square foot represents less than two thirds of replacement cost and a significant discount to comparable pricing of other multi-tenant industrial buildings, averaging near $200 per square foot.

The buildings were constructed in 1986. Deferred maintenance that will be addressed includes upgrades to the parking lot, roof, and HVAC units. Ownership may invest as much as $500,000 on related projects. Still, including this in the purchase price, the total cost is just $165 per square foot.

At closing, the property was 94% leased, with 8 tenants and one vacancy. Upside in cash flow should come from leasing the vacant space and collecting maintenance costs from tenants; the Seller of the property did not charge certain expenses as allowed for in leases.

Rohnert Park and Sonoma County continue to be attractive locales for living and working. While the one-hour drive to San Francisco is certainly possible on a daily basis, the work from home or hybrid model allows for fringe Bay Area cities like Rohnert Park to thrive. This drives demand for small industrial spaces that cater to local service providers, distribution companies and light manufacturing. In addition, while we expect some amount of warehouse development in Sonoma County, it will likely be of properties with larger spaces, rather than “incubator” units. It does not make financial sense to build multi-tenant industrial properties with small spaces, given that rents have not caught up with rising development costs. This should lead to rental rate upside at our property.