Raintree Partners invests in the kind of apartments that just about anyone would be happy to rent. The private commercial real estate investment and development company based in Laguna Niguel, California, focuses on multifamily properties in major West Coast markets, with a special emphasis on such upscale and up-and-coming California locales as Carlsbad, Sherman Oaks, and the Mid-Market area of San Francisco. It’s not unusual to encounter features like walk-in closets and floor-to-ceiling windows in their units while the properties themselves routinely feature amenities like rooftop lounges and Jacuzzi-style tubs. Since its founding in 2007, the firm has acquired more than 20 communities totaling more than 3,200 units including those under development.
Three of its acquisitions fit the mold: Taiko Village in Burbank, Villa Sofia in Sherman Oaks, and Vista Pardiso in Studio City. All three complexes are Class A properties with modern design, high-end finishes, and stainless steel appliances. Each property offers a full amenity package including dishwasher, refrigerator, gas stove, microwave, wood or carpet flooring, and fireplaces. The properties offer an array of one-, two-, and three-bedroom units, including townhome-style units that range up to 2,059 square feet.
Their back-story, however, is somewhat unusual—but consistent with Raintree’s philosophy of applying the appropriate investment strategy as opportunities arise. The three properties had originally been developed as for-sale condominiums. In 2011 and 2012, Raintree purchased these assets out of bankruptcy and a portfolio of bank-owned REO. Upon acquisition, Raintree completed the remaining construction and began operating the three properties as for-rent condominium communities. The initial acquisitions were financed with floating-rate bridge debt. On stabilization, Raintree looked to Capital One Multifamily Finance for take-out financing options.
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