Pedersen's putting downtown Santa Rosa building up for sale

Sell the building. Keep the business.

The Pedersen family, which for 125 years has sold furniture in downtown Santa Rosa, plans to put on the market its large showroom and warehouse building at Fifth and D streets. But Paul and Ken Pedersen, the two owners of the business, said they will keep offering high-end furnishings and interior design services, whether by selling the building and leasing it back or by finding a new location.

“This is a pretty prime piece of property,” Paul Pedersen said Monday after showing a visitor historic photos of four generations of Pedersen merchants. On a nearby wall sat an image of the first store his great-grandfather operated here before the April 1906 earthquake flattened it - along with much of the downtown business district.

Pedersen explained that the current building is owned by four family members: his uncle William Pedersen, cousin Dick Pedersen, brother Ken and himself. The four decided that rather than wait until one owner's death or some other situation forced a sale, they would put the property on the market now in the hopes of obtaining the best price and the least disruption for the company.

“We want to control the situation for the benefit of our family and our staff and our business, because our business is good,” Pedersen said. The company is debt free and “consistently makes a profit.”

Pedersen's belongs to a trio of downtown businesses that have passed the century mark. The others are Fourth Street retailers Corrick's stationery and gifts, which began in 1915, and E.R. Sawyer Jewelers, which dates from 1879.

Over the years, Pedersen's has sold furniture, undertaker supplies, televisions and appliances. But today it features premium American-made furnishings, with about half its sales from one designer, Stickley of Manlius, N.Y.

It also offers a design service. The store's 23 staff members include 10 designers, who account for more than 40 percent of the store's business, Pedersen said.

The company moved in 1953 to its current location, a 50,000-square-foot showroom and warehouse.

The building's owners have yet to set a price or select a brokerage firm to market the property, Pedersen said.

Once the property sells, the furnishings business might lease back the building. But if the new owner wants to tear down the structure and put up a mid-rise building, Pedersen said, his brother and he will make sure they get enough time to find a suitable replacement site.

City law would allow a seven-story building on the location, said David M. Guhin, director of the city's Planning and Economic Development department.

Downtown developer Hugh Futrell acknowledged the Pedersen's building sits at “a very good location.” Even so, he suggested the most likely mid-rise developments today aren't offices or condominiums but rental apartments, such as the 107-unit, seven-story project the city recently approved for him on Fourth Street next to Big O Tires.

Moreover, he said, “It's not easy to build mid-rise structures and have the numbers work.” Instead, properties with existing buildings often draw higher prices for their leasing opportunities than development potential.

Al Coppin, president of Santa Rosa brokerage Keegan & Coppin/Oncor International, said the Pedersens likely would find their best result by selling the building and leasing it back for their own store.

“That's going to achieve their highest return,” Coppin said.

You can reach Staff Writer Robert Digitale at 707-521-5285 or robert.digitale@pressdemocrat.com. On Twitter @rdigit.