Duggan's Mission Chapel

Offered on an unpriced basis, 525 West Napa Street in Sonoma, California, is a single-tenant, net-leased investment currently leased to Duggan’s Mission Chapel. The base lease term expires in December 2028, with two additional 5-year renewal options. The current base rent of $0.70 per square foot per month is at least 40% below typical retail rates in this Sonoma submarket. Additionally, the lease includes biennial increases of 2%, effectively a 1% annual increase, which is also well below industry norms.
The sellers may seek approval from the United States Bankruptcy Court to terminate the existing below-market lease with Duggan’s Mission Chapel, allowing the property to be sold free and clear of the lease. Interested buyers are encouraged to submit bids based on either (a) the property being sold without any leases or (b) the current lease being amended to reflect market rates.
The property spans approximately 9,572 square feet of gross building area and includes 15 on-site parking spaces. It features two double-wide curb cuts for easy access, plus an additional double-wide driveway on Studley Street, which runs parallel to West Napa Street just south of the site. The building has high-visibility illuminated signage on West Napa directly in front, along with a portico-style entrance on the east side.
Located at the prominent intersection of 5th Street West and West Napa Street, this “soft corner” benefits from heavy vehicular traffic and well-monitored pedestrian walkways on all four corners. Nearby retailers on the opposite corners include Safeway, a flagship Wells Fargo branch, and the Sonoma Valley Center, anchored by Sonoma Market and Redwood Credit Union.
This offering is rare. For value-add investors, it presents a unique opportunity to acquire a prime asset with strong traffic exposure and the potential to bring rental income in line with market rates in a highly sought-after, infill submarket with significant barriers to entry. Owner-users will find this an ideal flagship location with ample parking for business operations. Meanwhile, long-term investors seeking a bond-like return can consider the property as a lower-yield investment initially, with confidence in significant rental growth potential if the lease remains in place.