15 Fremont Drive is a 5.08-acre LC-zoned development parcel occupying the signature corner at the Arnold Drive roundabout — the gateway intersection where every visitor enters Sonoma Valley wine country. Independently appraised at $4.6M (2024, as-is — excluding the cannabis operation) and $4.0M–$5.0M in a 2020 appraisal that valued the property at $4.0M without a cannabis retail tenant and $5.0M with one — a documented six-year value history. With a permitted 1,400 GPD septic system — expandable through an identified expansion area and modern treatment technology — all utilities in place, and existing income that covers carrying costs, this is one of the few remaining commercial parcels of this scale in a built-out market.
Since the 2024 appraisal, the owner has completed hundreds of thousands of dollars in capital improvements — a fully refinished standalone executive office building (drywalled, floored, electrified), a new rear-access easement roadway (Caltrans encroachment permit in process), new outdoor seating and food-vending areas, expanded outdoor storage, and sitewide grounds and infrastructure upgrades. A commercial feasibility study by Hogan Land Services confirms what the corner already suggests: this is a highly developable property in wine country — build the hotel, winery and tasting room, or destination retail experience here.
The property includes eight existing structures totaling 4,599 SF of improvements (per the 2024 appraisal) — anchored by a 1,328 SF retail building with an established dispensary tenant with a multi-year operating history, a 1,205 SF single-family residence, and multiple storage and support outbuildings — all on a single parcel with substantial undeveloped land. A recently completed $35M Caltrans infrastructure project has materially improved access and visibility at this intersection. Industry estimates place the sole local competitor at approximately $9.6M in annual gross receipts, demonstrating the revenue ceiling this market supports.
For a developer, the thesis is straightforward: 5.08 acres of LC-zoned land at the most visible commercial corner in Sonoma Valley, with a permitted 1,400 GPD septic system with room to grow — modern treatment technology expands capacity while shrinking the leach-field footprint, and an identified expansion area allows additional flow, all utilities connected, and current income that covers carrying costs while you plan and entitle. Hotel, restaurant, retail, events venue, cannabis — all permitted uses under LC zoning. The property pays for itself while you build your vision.
Download the full OM with detailed financials, site analysis, and deal structure options.
Valued at $4.0M without a cannabis retail tenant — $5.0M with one in place.
As-is value — appraised without considering the cannabis operation at all.
Priced $700K below the 2024 as-is appraisal to transact promptly — two years of market gains, the completed $35M Caltrans improvement, and hundreds of thousands in post-appraisal capital improvements already included.
Appraisals were performed by licensed professionals for financing purposes. The 2024 appraisal predates the completed $35M Caltrans roundabout improvement. Sonoma County commercial real estate "improved substantially in 2025 over 2024" with "pent-up demand" heading into 2026 (Press Democrat / North Bay Business Journal, February 2026).
Zoned LC (Limited Commercial), Sonoma County Code Ch. 26 — retail, restaurants, offices, and financial services permitted; hotel / inn, wine tasting rooms, mixed-use development, and events available with a use permit.
Existing improvements provide income while you plan. The value is in the land, the location, the development capacity — and the current income from high rent-paying tenants.
A built-out retail storefront currently leased to a licensed cannabis dispensary. Move-in ready with all fixtures, security, and POS infrastructure. 1,328 SF per the 2024 appraisal.
A rent-ready home on the property. Currently leased month-to-month. Can serve as rental income, owner housing, or guest accommodation. 1,205 SF per the 2024 appraisal.
Multiple permitted storage and support structures across the parcel (approximately 1,967 SF combined). Additional rental income or operational support for the primary businesses on-site.
Note on the dispensary tenant: The cannabis license is held by the operating business, not the property. The tenant may stay under favorable lease terms, or the business may relocate. A percentage lease structure is also available in lieu of flat rent — giving the landlord direct participation in the tenant's growth.
15 Fremont Drive occupies a premier position at the roundabout intersection of Arnold Drive and Highway 12 — the main corridor connecting Sonoma, Napa, and the broader wine country region.
This intersection recently underwent a $35 million Caltrans infrastructure improvement at the nearby junction of State Route 121 and State Route 116, dramatically improving traffic flow, access, and visibility.
This is often the first stop for wine country visitors driving in from the airport — a premier, once-in-a-lifetime corner for a hotel or resort, a winery and tasting room, or a destination retail experience. This much affluent wine-country traffic drives past the front door every single day.
270° views of pristine wine country mountains — and the land across the street is protected forever. It will never be developed. You will not beat the view from this corner.
Combined Average Daily Traffic for the Highway 12 / Arnold Drive (SR 121) intersection. Caltrans published AADT data confirms approximately 30,000+ combined daily vehicles at this junction.
Sonoma Valley draws over 10 million visitors annually to its tasting rooms, restaurants, and resort properties. The commercial corridor along Highway 12 / Arnold Drive is the spine of this market — and developable land at the gateway intersection is exceptionally rare.
Demographic estimates based on Census ACS data for Sonoma Valley census tracts. Visitor data: Sonoma County Tourism Bureau. The 5-mile radius captures the communities of Sonoma, Boyes Hot Springs, Fetters Hot Springs, El Verano, and Glen Ellen.
The rent roll is the floor. Industry estimates place the sole competitor at approximately $9.6M in annual gross receipts — demonstrating the revenue ceiling this market supports. Under the percentage lease structure, landlord income scales directly with the business as it grows toward that market ceiling.
| Component | Monthly | Annual | Structure |
|---|---|---|---|
| Retail Building (1,328 SF) | Percentage lease or flat rate | Included in base | Flexible |
| Residence (1,205 SF) | Market rate | Included in base | Month-to-month |
| Storage & Support Buildings | Included | — | Permitted |
| Base Rent Roll | Established | $180,000+ | Floor — not ceiling |
The operating tenant is an established, profitable, award-winning business with a 9+ year regulatory track record through DCC review — the highest-reviewed store in the market, growing rapidly. The business demonstrates strong margins and a clear growth trajectory — industry estimates place the sole competitor at approximately $9.6M in annual gross receipts, establishing the market ceiling.
Key point: under the percentage lease structure, landlord income grows directly with tenant revenue — with no ceiling. Detailed financials available to qualified buyers under NDA.
Established rent roll from day one. Stable, predictable, backed by an operating business and a month-to-month residence.
The percentage lease structure exceeds the flat rate as the business grows — and scales upward from there. As the business captures market share from a single competitor, income compounds.
| Property / Location | Type | Sale Price | Price/SF | Cap Rate | Date |
|---|---|---|---|---|---|
| Commercial parcels, Highway 12 corridor | LC / Commercial | $2.5M–$5M range | $400–$700 | 4.5–6.0% | 2024–2025 |
| Sonoma Plaza area retail | Commercial / Retail | $2.2M–$4M range | $500–$900 | 4.0–5.5% | 2024–2025 |
| Glen Ellen commercial (CUP-grade) | Cannabis-Adjacent | $1.5M–$3M range | Varies | N/A (license value) | 2023–2025 |
| 15 Fremont Drive (Subject) | LC / Mixed-Use | $3.9M | $768K/acre | Below $4.6M 2024 appraisal | Aug 2026 |
Direct comparable: 23999 Arnold Dr (same LC zoning, same corridor) is listed at $5,350,000 (LoopNet, Aug 2026) with no income in place. 15 Fremont Drive is offered at $3,900,000 — roughly $1.45M below that comparable — with $180K+ per year in existing income, the gateway roundabout position, and a completed $35M Caltrans infrastructure improvement.
Comparable ranges based on Sonoma County recorded commercial transactions, active LoopNet/Crexi listings, and Press Democrat/North Bay Business Journal market reports (Feb 2026). Special-use properties may carry premiums not reflected in standard $/SF metrics.
The property is zoned LC (Limited Commercial) under Sonoma County Code Chapter 26. A permitted septic system with 1,400 GPD design capacity and real expansion headroom — an identified expansion area plus modern treatment technology that increases flow capacity while using less land than legacy leach fields, freeing more of the parcel for development — supporting restaurant, hotel, events venue, or expanded commercial use. All utilities are connected. The land offers significant development flexibility beyond the existing improvements. A commercial feasibility study by Hogan Land Services confirms the site’s developability — a highly developable corner property in wine country, suited to a hotel or resort, winery and tasting room, consumption lounge, or destination wine-tourism retail.
Site plan showing existing improvements, septic systems, and developable areas (red hash). Septic expansion area confirmed for future capacity.
Additional Rear Roadway Easement — gravel access road providing rear entry and exit to the parcel. The structures visible belong to a neighboring property; this easement provides access to the rear of 15 Fremont Drive.
Calculator is for illustrative purposes only. Not a guarantee of performance. Actual terms vary by lender and structure.
Sources & Uses (Illustrative): Property offered at $3.9M — $700K below the independent 2024 as-is appraisal — priced for a prompt, certain close, with a response to all qualified offers within 24 hours. Existing income of $180K+ per year covers carrying costs while buyer plans and entitles. Buyer purchases for land value, location, visibility, and development capacity. The operating business is available only in combination with the property (Options B/C); business financials under NDA. Property offered in its present condition; all terms and structures negotiable.
The investment offers multiple exit paths: sale of the entitled development site, sale of the stabilized income property, or 1031 exchange. At $3,900,000 — $700K below the 2024 as-is appraisal — every scenario below is positive.
Priced $700K below the 2024 as-is appraisal. Even the floor scenario — selling at exactly the 2024 appraised value with zero appreciation — returns 7.6% annually all-cash with over $1.5M total profit from income and sale.
| Exit Scenario | Exit Cap Rate | Year-5 NOI | Exit Value | IRR (all-cash) | Equity Multiple |
|---|---|---|---|---|---|
| Income Floor — exit at 2024 appraised value | — | $195K | $4.6M | 7.6% | 1.40x |
| Stabilized Sale | 5.25% | $240K | $4.57M | 8.0% | 1.42x |
| Development Entitled | 5.5% | $350K+ | $6.36M+ | 15.4%+ | 1.95x+ |
| Full Build-Out + Competitor Scale | 5.0% | $480K+ | $9.6M+ | 25.0%+ | 2.85x+ |
All-cash (unlevered) projections: NOI escalates linearly from $180K to each scenario's Year-5 NOI; exit value equals Year-5 NOI divided by the exit cap rate, less 1.5% selling costs; the Income Floor scenario exits at the 2024 as-is appraised value ($4.6M) rather than a cap-rate-derived value. Leveraged returns (e.g., 35% down at 7.5%, 25-year amortization) vary with financing terms. Development and competitor-scale scenarios assume land entitlement and/or percentage lease participation. All projections are illustrative. Actual results vary. 1031 exchange eligibility should be confirmed with tax counsel.
Operate with current tenant, collect escalating rent, sell into a stable cap rate environment.
Entitle and develop additional square footage, then sell or refinance at a development-grade cap rate.
Qualifying replacement property for a 1031 exchange. Confirm eligibility with tax counsel.
Detailed financials, appraisal history, site analysis, and deal structure options available under NDA. Schedule a call or site visit — all inquiries answered within 24 hours.
Call (707) 777-7563