Raintree Partners, based in Orange County, Calif., recently closed on seven apartment communities in Glendale for $79 million. The 231 units were owned and sold by a private seller with Alex Mogharebi and Otto Ozen of The Mogharebi Group representing the seller. Wells Fargo provided the acquisition financing.

The move by Raintree lines up with a strategy of investing in small properties in key submarkets. “Over the past several years, we’ve successfully amassed economies of scale in select submarkets through targeting multifamily properties under 100 units,” said Ian Couwenberg, director of acquisitions for Raintree Partners. “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.” Along those same lines, Raintree is also beating the bushes in Orange County, San Diego, and the Bay Area.

Glendale presented a vital link in what promises to be a valuable multifamily chain for the firm. “The city of Glendale continues to demonstrate strong market fundamentals, resulting in an influx of investment capital and new apartment deliveries in recent years,” said Matt Barbiasz, acquisitions associate at Raintree. “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.”

Raintree plans to undertake a round of value-add operations in the recently acquired properties, including addressing deferred maintenance, upgrading exteriors, amenity areas, and unit interiors, and installing new washers and dryers at select properties.

The new properties will be branded as The Indie Collection and include:

  • Stanley Oaks Apartments, an 80-unit community at 1435 Stanley Ave.;
  • Everett Apartments, an eight-unit community at 138 N. Everett St.;
  • Wilson Apartments, a 14-unit community at 1458-1462 E. Wilson Ave.;
  • Justin Oaks Apartments, a 54-unit community at 1133 Justin Ave.;
  • Chestnut Apartments, a 33-unit community at 120 W. Chestnut St.;
  • Galleria Pointe Apartments, a 22-unit community at 1140 N. Columbus Ave.; and
  • Burchett Apartments, a 20-unit community at 314-320 W. Burchett St.