120-unit 38 Degrees North project in Santa Rosa attracts residents from Bay Area and beyond
The first residents are moving into 120 apartments at 38 Degrees North, the first phase of a newly constructed southeast Santa Rosa apartment community.
It’s a project by global real estate company Kennedy Wilson (NYSE:KW). The project, located at 1020 Kawana Springs Road at Petaluma Hill Road, is targeted to tenants who want high-end apartment living with modern residences and amenities, according to the developer. About 40% of the units are leased so far.
The 120 apartments across five buildings range in size from 720-square-foot one-bedroom units to 1,090-square-foot two-bedroom flats featuring “smart home” technology, including keyless entry, and designer finishes. Market-rate monthly rents for the first phase range from $2,240 to $2,575.
Eighteen of the units will be reserved as “affordable,” for residents with incomes at or below 50%–60% of area median Income.
38 Degree North’s amenities include a 4,177-square-foot clubhouse with indoor and outdoor fireside lounges, game areas, gourmet coffee bar, resort-style pool and spa, outdoor kitchen, 24-hour cardio and weights fitness center, dog park, “tot lot” playground, community gardens and nightly trash collection from the doorstep. The complex is near Taylor Mountain Regional Park.
Kennedy Wilson plans to build a second phase of the apartment community that is expected to include 172 one- and two-bedroom units set alongside a creek that will mirror the aesthetic of the first apartment homes currently available.
The Business Journal asked Kurt Zech, president of multifamily Investments at Kennedy Wilson, about the project.
How does the project fit into the current multifamily market – is it a rare offering compared to what’s currently in Santa Rosa and neighboring cities? Have you seen a lot of multifamily developments taking root in Santa Rosa lately?
The level of finishes, smart-home technology and common area amenities at 38 Degrees North are unique to Santa Rosa. At this point, there are a limited number of new-construction competitors in the market. 38 Degrees North addresses the needs for affordable housing in the area by providing 18 below-market units, while also offering high-quality rental options for “renters by choice,” including professionals and those looking for home-quality finishes.
The design-forward and amenity-driven look and feel of this project has become the norm for new development in major metropolitan areas, however, it presents a unique offering for the Santa Rosa market.
Have you witnessed a lot of preleasing interest from residents leaving dense urban locations like San Francisco?
Approximately 25% of our leases are coming from the core Bay Area. There is definitely a lot of interest from people in these areas. We are also seeing renters who are looking for high-quality, modern features relocating to Santa Rosa from out of state for job opportunities.
Do you see a lot of development and investment opportunity in Santa Rosa and the greater wine country region right now, given the latest trends of urban flight?
Yes, the wine country lifestyle and relative affordability are going to attract renters who have the flexibility to work from home. Ultimately, we believe this will lead to further multifamily investment in the area.