Raintree Partners, a Laguna Niguel, Calif.-based real estate investment and development company, has purchased 1200 Riverside Apartments, a 270-unit multifamily property in Burbank, Calif. for $43.15 million, or $159,814 per unit.
The property, which is 98.5% occupied, includes six buildings on more than four acres with a roof deck lounge, clubhouse, pool and spa, fitness and laundry centers. Adjacent to the Los Angeles Equestrian Center, it has 70 horse stables. The apartments are in a strong rental market two miles from downtown Burbank, near entertainment employers including, Walt Disney Co., Warner Bros Inc., NBC Universal Inc., DreamWorks Studios, and Nickelodeon Studios, says Aaron Hancock, director of acquisitions at Raintree Partners.
The apartments were recently renovated at a cost of $8.4 million, according to Jeff Allen, CEO of Raintree Partners. “Although the project was originally constructed in the mid-1960s, the renovation, which included an updated façade, replacement of all major building systems and substantial upgrades to the common areas, makes the property look and feel new.”
The acquisition was financed with a new $30 million Fannie Mae loan originated through Deutsche Bank Berkshire Mortgage, according to Raintree Partners. No broker was involved in the sale of the property. “We started discussions with the prior owner regarding a potential sale of the property nearly 6 months ago,” says Jason Check, director with Raintree Partners.
The acquisition brings the firm’s holdings in California to 11 multifamily communities, with more than 1,800 apartment units, says Allen. Raintree Partners, a private real estate investment company, invests through a partnership with a major institutional investment management company, which committed $200 million of equity capital to the venture.