Raintree Partners has acquired a portfolio of five multifamily communities in Southern California for $142 million from a private seller.
The properties, which total 551 units, are in Canoga Park, Glendale, and Hollywood in Los Angeles County and Camarillo in Ventura County. According to Mathew Barbiasz, vice president of acquisitions, the portfolio aligns with the Orange County-based firm’s investment strategy to assemble properties in strategic submarkets in urban California locations.
This is Raintree’s third multifamily portfolio acquisition within 18 months. The private commercial real estate investment company acquired three properties with 176 units in the San Francisco East Bay submarket of Walnut Creek in April as well as seven properties with 231 units in Glendale in June 2019.
“This was an incredibly rare opportunity to acquire a multifamily portfolio of this size with strong upside potential within the Los Angeles and Ventura markets,” Barbiasz says. “After navigating the turbulence and uncertainty of this year and continuing to strategically identify and evaluate opportunities, we were well-positioned to acquire this complete portfolio of properties.”
Raintree managing director Aaron Hancock adds that the five communities fit with the firm’s existing multifamily holdings, with the Camarillo, Glendale, and Hollywood communities complementing its holdings in those submarkets. The firm also is entering the Canoga Park submarket with two properties with 264 units to immediately achieve scale.
“Our proven strategy of amassing economies of scale in strong California submarkets, which offer residents the convenience of urban living with close proximity to ample and diverse employment, has allowed us to optimize management efficiency and maintain robust portfolios,” says Hancock.
Raintree plans for comprehensive value-add renovations, including upgrades to exteriors, unit interiors, and amenities, across the four Los Angeles County properties and a light refresh at the Camarillo property.
“While these communities were well maintained by the seller, there is still tremendous upside from a renovations and repositioning strategy,” says Barbiasz. “Drawing on our experience as long-term owners, we will be able to fully realize the upside and reposition the properties based on our knowledge of current resident expectations in these markets.”
CBRE’s Dean Zander, Stewart I. Weston, and John Montakab represented the seller in the transaction. Financing was provided by Fannie Mae and arranged by Capital One’s Greg Reed and Kristen Croxton.
