| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 81st | Best |
| Demographics | 76th | Good |
| Amenities | 93rd | Best |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 321 1st St, Petaluma, CA, 94952, US |
| Region / Metro | Petaluma |
| Year of Construction | 2007 |
| Units | 90 |
| Transaction Date | 2015-10-08 |
| Transaction Price | $29,750,000 |
| Buyer | Harry Arthur |
| Seller | Matthew White |
301 1st St, Petaluma CA Multifamily Investment
Downtown Petaluma’s renter base is supported by strong amenity density and above-median neighborhood occupancy, according to WDSuite’s CRE market data. For investors, the key takeaway is durable demand drivers in a high-cost ownership market that can support lease stability.
The property sits in an Inner Suburb neighborhood that ranks 2nd among 138 metro neighborhoods, reflecting broad strength across livability and investment fundamentals. Amenity access is a clear advantage: restaurant, grocery, and cafe densities are competitive among Santa Rosa–Petaluma neighborhoods and place the area in high national percentiles, a pattern that typically supports tenant retention and leasing velocity.
With neighborhood occupancy above the metro median and in the top quartile nationally, investors can underwrite to demand stability rather than lease-up risk. A majority of housing units are renter-occupied, indicating meaningful depth in the tenant base and ongoing multifamily demand.
Vintage matters: the submarket’s average construction year is 1962, while this asset was built in 2007. The newer build year positions the property competitively versus older local stock, with potential for targeted upgrades that focus on modernization and common-area appeal rather than heavy systems replacement.
Within a 3-mile radius, recent data show households increased while population edged down, implying smaller household sizes and a modest shift toward renters. Forward-looking projections point to population growth and additional households, which can expand the renter pool and support occupancy and rent fundamentals over time, based on CRE market data from WDSuite. Elevated home values in the neighborhood context reinforce reliance on multifamily housing, while rent-to-income levels suggest thoughtful lease management can balance pricing power and retention.
Safety indicators are mixed and should be evaluated in underwriting. The neighborhood’s crime rank is toward the higher end within the Santa Rosa–Petaluma metro (ranked 128 out of 138), and national comparisons place the area below average for safety. However, recent trends show improvement in violent offenses, which have been declining year over year, suggesting some directional progress.
Investors should emphasize practical mitigants—property-level security features, lighting, access control, and resident engagement—while benchmarking performance against comparable neighborhoods in the metro rather than block-level readings. This framing aligns with portfolio risk practices and keeps attention on trends over time rather than single-period snapshots.
Commuter access connects residents to a broad Bay Area employment base. Nearby corporate offices such as FedEx, Wells Fargo, Salesforce, PG&E, and McKesson support renter demand through diversified white-collar and logistics roles.
- FedEx Headquarters — logistics (21.3 miles)
- Wells Fargo — financial services (32.9 miles) — HQ
- Salesforce.com — software (33.1 miles) — HQ
- PG&E Corp. — utilities (33.2 miles) — HQ
- McKesson — healthcare distribution (33.2 miles) — HQ
301 1st St is a 90-unit, 2007-vintage asset positioned in a top-ranked Petaluma neighborhood where amenity density and above-median occupancy indicate durable renter demand. The newer vintage versus the area’s older housing stock provides a competitive edge and a pathway for selective value-add focused on finishes and common areas rather than major systems.
High neighborhood home values and strong household incomes reinforce multifamily reliance and support pricing power, while rent-to-income levels call for disciplined lease management to sustain retention. According to CRE market data from WDSuite, neighborhood fundamentals compare favorably against metro and national trends, with forward-looking 3-mile demographics indicating a larger household base that can expand the tenant pool.
- Competitive 2007 vintage versus older local stock, supporting positioning and selective value-add
- Amenity-rich location with above-median neighborhood occupancy supporting demand stability
- High home values in the area sustain renter reliance on multifamily housing and pricing power
- 3-mile projections point to more households and a larger tenant base over time
- Risk: neighborhood safety ranks below metro average; emphasize security measures and comp-based underwriting