Developer acquires Petaluma’s Theatre Square Waterfront

A San Mateo-based real estate investment company on Friday announced the acquisition of the 96-unit, mixed-use Theatre Square Waterfront development in Petaluma, one year after acquiring the nearby 99-unit Theatre Square Apartments and Lofts.

JB Matteson will operate the three downtown Petaluma buildings as a single property, according to an announcement by the company. The acquisition cost was $29.75 million. JB Matteson announced in 2014 that it paid $32.5 million to buy the Apartments property from its original developer, Basin Street Properties.

In a statement, John Bellack, the developer’s co-president and chief investment officer, cited the area’s walkable nature and proximity to the future Sonoma Marin Area Rail Transit station as attractive elements.

“It is a modern, urban property within walking distance to restaurants, shops, movie theatre and services, and it’s within two blocks of the SMART train station under construction,” he said.

Basin Street, the company responsible for the mixed-use Theatre Square development, completed the Waterfront development in 2007. The Apartments project was completed in 2005.

The Waterfront development includes a mix of townhome and loft units, along with two commercial spaces totaling 4,890 square feet and 112 parking spaces. The Apartments project includes a mix of units including 43 loft-style apartments, along with 22,250 square feet of ground level commercial space, according to the developer.

(Contact Eric Gneckow at eric.gneckow@arguscourier.com. on Twitter @Eric_Reports.)