By Jon Peterson
The 147-home Azure at Lakeville Square located at 2620 Lakeville Square in Petaluma is now on the market for sale, according to the offering document on the property. The asset was built in 2007 to condominium specifications, but has individual tax pins. The property is now operated as a rental complex.
The un-named seller has hired the San Francisco office of HFF as the listing agent. The people working on this transaction are Scott Bales, managing director, and Adam Simon, associate director. HFF did not respond to several phone calls seeking comment for this story.
The current ownership has had a value-add program at the property. This has included wood inspired flooring, stainless steel appliances and side-by-side refrigerators. A new shared amenity at the project is a newly built on-site dog park. The opportunity for rent growth is enhanced by the spacious and unique floor plans that are involved in the property. Around 92.5 percent of the property consists of either two-bedroom two-bath or one-bedroom one-bath units.
The sale of the asset is available on an all-cash basis. There are a total of five buildings in the complex with it covering 5.63 acres of land.
Azure at Lakeville Square is located in a strong apartment market. Apartment rents in Petaluma have increased 6.3 percent on a year-over-year basis as of December of 2015. For the same time period occupancy for apartments in the market was over 97 percent.
A main reason for this is that there hasn’t been a great deal of new units added to the Petaluma market over the past couple of years. This has placed demand way ahead of supply. Apartments are projected to continue to show a strong performance in the future. The projections are that effective rent growth is anticipated to average 4 percent and maintain a 95.7 percent occupancy or higher through the end of 2020.
