Team helps private investor execute strategic 1031 exchange to diversify portfolio as medical office demonstrates stability, with continued tailwinds driving demand
Levin Johnston of Marcus & Millichap, one of the top brokerage teams in the U.S. specializing in wealth management through commercial real estate investments, announces it has represented the seller and procured the buyer, a private family ownership group, in the $23.685 million sale of a 67,584-square-foot, two-story property anchored by two major healthcare providers, Kaiser Permanente and Petaluma Health Center. Levin Johnston’s Executive Managing Director Robert Johnston, Executive Managing Director Adam Levin, and Investment Associate Justin Fink completed the transaction.
The acquisition presented a prime opportunity for portfolio diversification and long-term income stability following the buyer’s recent disposition of Bay Area multifamily property, according to Johnston.
“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.
“With many private investors today seeking limited exposure to broader market volatility, healthcare-oriented assets continue to attract significant interest because they combine resilient tenancy, predictable income streams, and needs-based characteristics,” says Levin. “The asset aligned exceptionally well with the buyer’s long-term wealth planning.”
As one of Sonoma County’s fastest-growing communities, Rohnert Park continues to benefit from strong regional demographics, expanding employment sectors, and a strategic location along the Highway 101 corridor.
“Even as some Bay Area communities experienced pandemic-era population declines, Rohnert Park’s population has steadily climbed since 2020,” says Johnston. “Its expanding population, proximity to Sonoma State University and accessibility throughout the North Bay continue make it an increasingly attractive market for real estate investment.”
Situated on 4.79 acres in the heart of Rohnert Park, 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. The property also offers excellent accessibility via U.S. Highway 101, Rohnert Park Expressway, and State Route 116, supporting convenience for both employees and patients.
“Transactions like this reflect the continued demand we are seeing from private investors looking for stable, long-term assets throughout the greater Bay Area,” continues Levin. “With deep relationships in the region and access to a broad range of multifamily, medical office, and other investment opportunities on a national scale, our team remains focused on helping clients strategically preserve and grow wealth across evolving market cycles.”
The property is located at 5900 State Farm Drive, Rohnert Park, CA 94928.
For more information about Levin Johnston’s $200 million in available properties, visit www.levinjohnston.com.
ABOUT LEVIN JOHNSTON
Levin Johnston of Marcus & Millichap is one of the top multifamily brokerage teams in the U.S. specializing in wealth management through commercial real estate investments. With a focus on growing and sustaining wealth for each and every Client, the Levin Johnston team is expert in investment sales and acquisitions, value-driven asset management, 1031 exchanges, and ongoing advisory services. Since its inception, Levin Johnston has directed more than $8 billion in transactions, resulting in stable risk-adjusted returns for investors throughout the U.S. Levin Johnston is part of Marcus & Millichap’s Palo Alto office. More information is available at levinjohnston.com.
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