Anderson Valley Mixed-Use Investment Opportunity

This offering is a once in a lifetime opportunity to purchase the West side of Highway 128 in Philo, the center of the Anderson Valley's world class Pinot Noir-centric AVA. Historically known as The Last Resort, this complex is the center of Philo. Today it comprises 9 buildings on 5 lots, totaling 1.5+/- acres. There are 5 cottages (two with 2BD/1B and three with 1B/1B) and a mid-century modern designed tasting room (built in 2013), currently leased by the Baxter Winery. The SF Chronicle said this about the tasting room, '' A visit to the winery's sleek, modern tasting room is a good idea for anyone driving down Highway 128.''  

There are also three vacant buildings, one of which has a septic permit for a 1BD/1B conversion.  The footprint of the central building (formerly a post-war saloon and dance hall) has been maintained for maximum future development opportunity. The land consists of 5 separate APN's that were verified through the certificate of compliance process with Mendocino County in 2005. A new owner could decide through the county application process to boundary line adjust the property into five parcels of their own liking and include the required elements of water and septic in that application. The water system that serves all the parcels is currently a state small water system with storage tank and UV treatment. An application is pending with Mendocino County to remove the designation, as three of the cottages will now be serviced by a new well.  In 2023 a boundary line adjustment was approved, which makes possible the sale of three cottages and their associated septic and well. All three cottages will be delivered vacant. A map is available showing its current configuration. 

The property is ideally suited for hospitality, wine retail, tourism, residential investment, or a long term investment hold in a desired and scenic town in Coastal California. Good income and a strong demand for housing in the area assure reduced risk for the buyer. Due to the central location on the Western side of Highway 128, the buyer has a unique opportunity to influence the future character of the village of Philo, and of Anderson Valley. If you are looking for a robust commercial opportunity in rural California, there is no better property than Philo's Last Resort. 

Background
The property historically known as 'The Last Resort' is located on the West side of route 128 in Philo, California across from Lemon's Market. With 300 feet of Highway 128 frontage, the property has one central building that was a restaurant bar during the post-WW2 redwood lumber boom, surrounded by eight smaller, mostly residential cottages. Currently there are a total of nine buildings on the property and a small storage shed. 
 
Infrastructure
There are two wells on the property. The primary well currently services the entire property and was last rated in 2005 at 10 GPM. There is a UV sterilization system on the water supply and a 5000-gallon steel tank. As a state small water system, the distribution system is tested for bacterial contamination quarterly by the county. The secondary well was drilled in 2023 and is rated at 2 GPM. It is intended as a separate water source in the event that the property is subdivided, and the three Southern cabins (8680/82/84) are sold. The secondary well does not yet have a water distribution system installed (cost estimate is $13,000). 
 
There are two leach fields and a leach pit for the six occupied units. Additionally, there is a one-bedroom septic permit to develop vacant unit 'E'. Carl Rittiman & Associates completed a septic study of the property in 2005. 
 
Zoning
A certificate of compliance was obtained in 2005 which yielded five historic lots. All five lots are zoned for commercial and residential uses(C-2). 
 
In 2023 a boundary line adjustment (BLA) was accomplished creating lots 61/62. Lot 61 is the Southern-most lot, and it has three cabins, its own septic system, and the secondary well, mentioned above, which is ready to be developed. 
Further BLA can be accomplished to configure the property as the owner desires, within the constraints of Mendocino County Planning. 
 
Structures
Units A, B, C, D, E 
These units either have tenants, or are in move-in ready condition. Rents and other details are detailed in the 'Structures' table. 
 
Unit F
The last known use of this building was as a warehouse for a book dealer. The inside has been gutted and the structure is in decent condition. There is a one-bedroom septic permit on file with the county. 
 
Unit G
Unit G will require a complete re-build or be torn down. Its footprint has been maintained for future development. 
 
The Last Resort (TLR)
The Last Resort is composed of two side wings and a center section. The center section is gutted (and in fact has no roof),and was retained to maintain the front setback. The two side wings are in decent shape and could be renovated.