Rohnert Park’s two-story medical office at 5900 State Farm Drive quietly traded hands in late May for $23,685,000, giving the buyer a fully leased building anchored by Kaiser Permanente and the Petaluma Health Center. The 67,584-square-foot complex sits on about 4.79 acres and offers clinical, dental and pharmacy services that draw patients from across southern Sonoma County. Brokers who handled the off-market deal said the buyer used a tax-deferred 1031 exchange and was attracted to the long-term healthcare tenants and the predictability of the cash flow.
The Levin Johnston team at Marcus & Millichap represented the seller and also sourced the buyer, with the sale working out to just over $350 per square foot, according to the brokerage. As reported by The Press Democrat, the seller is an affiliate of Nazareth Enterprises and the buyer is El Dorado Associates LLC. Commercial listing data and public parcel records identify the site as APN 143-021-024 and put the building at 67,584 square feet; LoopNet shows the same building size and lot area.
Backstory and recent upgrades
The property’s life as a medical hub dates back to 2014–15, when Meridian Property Company acquired and renovated the building, spending several million dollars to convert it into a health-care campus and build out the second floor for the Petaluma Health Center. Industry coverage and Meridian records indicate that Nazareth Enterprises bought the asset in 2015 for about $21.5 million, keeping Kaiser as the ground-floor tenant while Petaluma Health Center took roughly half the space after the renovation. Bisnow documented that earlier sale and the conversion work.
Why investors still favor medical office
National research suggests outpatient medical buildings remain one of the steadier plays in commercial real estate. PwC and ULI estimate there are about 42,260 medical office buildings nationwide totaling roughly 1.6 billion square feet, with occupancy in the top 100 metros reaching about 92.7 percent in 2025. The same research projects that medical office properties will outperform other commercial sectors through 2026. Brokers on the Levin Johnston team said the Rohnert Park building lined up with the buyer’s long-term wealth strategy and confirmed that the acquisition was structured as a 1031 exchange; CityBiz summarized their comments.
For patients, the sale should be largely invisible. Kaiser’s Rohnert Park medical offices and the Petaluma Health Center both continue to list 5900 State Farm Drive as their Rohnert Park location and still promote clinical, dental and pharmacy services at the site. Kaiser Permanente and the Petaluma Health Center maintain public listings for the facility. For Rohnert Park, the latest sale is another signal that medical office buildings remain a defensive, community-anchored choice for investors chasing steady income streams.
