Raintree Partners, an Orange County, California-based private commercial real estate investment company, has acquired a portfolio of seven multifamily properties totaling 231 units located in the Los Angeles submarket of Glendale, California for $79 million.
The acquisition is aligned with the firm’s investment strategy to assemble portfolios of smaller multifamily properties in submarkets of Los Angeles and other urban California locations, according to Ian Couwenberg, Director of Acquisitions for Raintree Partners.
“Over the past several years, we’ve successfully amassed economies of scale in select submarkets through targeting multifamily properties under 100 units,” explains Couwenberg. “This has allowed us to optimize management efficiency and build a portfolio of properties in the best urban submarkets of Los Angeles, which we could not penetrate by focusing exclusively on larger assets.”
Based on its successful implementation of the sub-100-unit investment strategy in Los Angeles, Raintree plans to roll out the same program in similar major California markets including Orange County, San Diego, and the Bay Area, according to Raintree’s Acquisitions Associate, Matt Barbiasz.
In its newly acquired Glendale properties, Raintree Partners will implement a comprehensive value-add renovation plan across the portfolio, which will include addressing deferred maintenance; upgrading exteriors, amenity areas, and unit interiors; and installing new washer-dryers at select properties. In conjunction with the upgrades, the firm will rebrand and operate the seven properties as The Indie Collection, establishing a strong identity within the local community and enhancing resident appeal, notes Barbiasz.
“The city of Glendale continues to demonstrate strong market fundamentals, resulting in an influx of investment capital and new apartment deliveries in recent years,” says Barbiasz. “The continued growth of Downtown Glendale, along with its proximity to major job centers in Downtown Los Angeles, Burbank and Pasadena make this a market that is well suited to Raintree’s localized and long-term hold investment program.”
The seven Glendale multifamily properties were acquired from a single private seller who had owned the assets for over many years. The properties include:
- Stanley Oaks Apartments, an 80-unit community located at 1435 Stanley Avenue
- Everett Apartments, an 8-unit community located at 138 N. Everett Street
- Wilson Apartments, a 14-unit community located at 1458-1462 E. Wilson Avenue
- Justin Oaks Apartments, a 54-unit community located at 1133 Justin Avenue
- Chestnut Apartments, a 33-unit community located at 120 W. Chestnut Street
- Galleria Pointe Apartments, a 22-unit community located at 1140 N. Columbus Avenue
- Burchett Apartments, a 20-unit community located at 314-320 W. Burchett Street
Alex Mogharebi and Otto Ozen of The Mogharebi Group represented the seller in this transaction. Wells Fargo provided the acquisition financing.
About Raintree Partners
Raintree Partners is a private commercial real estate investment company principally engaged in the acquisition, development and redevelopment of multifamily residential and mixed-use properties in the major markets in California. The company is headquartered in Dana Point, California with a regional office in San Francisco. Raintree, in partnership with an institutional equity investor, takes a long-term investment perspective in the execution of its acquisition and development strategy.
About The Mogharebi Group
The Mogharebi Group is a brokerage firm specializing in the multifamily property sector throughout California. The Mogharebi Group’s mission is to provide apartment owners with a fully integrated platform that includes comprehensive market knowledge, direct access to capital and local real estate expertise.
