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6/05/26
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A two-story, 67.6k sf office property in the Bay Area city of Rohnert Park traded in a recent $23.685 mil ($350/sf) transaction. The property is anchored by two major healthcare providers, Kaiser Permanente and Petaluma Health Center.
The building sits on 4.79 acres at 5900 State Farm Dr, just east of Hwy 101. The asset benefits from strong regional demographics, low vacancy levels, and proximity to Sonoma State University, major employers, shopping, dining, and entertainment amenities, in addition to a small on-site coffee shop, The Coffee Doctor. It also offers excellent accessibility via U.S. Hwy 101, Rohnert Park Expwy, and State Route 116, supporting convenience for both employees and patients.
Levin Johnston’s Executive Managing Director Robert Johnston, Executive Managing Director Adam Levin, and Investment Associate Justin Fink represented the seller and procured the buyer, a private family ownership group, in the deal. The acquisition presented the buyer a prime opportunity for portfolio diversification and long-term income stability following their recent disposition of Bay Area multifamily property.
“The buyer was seeking to strategically redeploy capital through a 1031 exchange after fully realizing depreciation on a multifamily investment in San Mateo County,” explains Johnston. “The purchase of this stable, institutional-quality medical office asset in one of Sonoma County’s fastest-growing communities provides the investor with durable in-place healthcare tenancy, long-term lease commitments, contractual rent growth, and operational stability.”
Levin notes that recent industry research from PwC and the Urban Land Institute indicates that medical office properties are expected to outperform through 2026 due to sustained outpatient demand, an aging population, and limited new construction, reinforcing the sector’s appeal as a wealth preservation strategy.
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