Livermore, Calif.–Raintree Partners, a Laguna Niguel, Calif.-based real estate investment and development company, has completed the acquisition of Meadowbrook Apartments, a 125-unit multifamily property in Livermore, Calif.
The purchase price was $16.7 million, according to Jeff Allen, CEO of Raintree Partners. This is Raintree’s eighth multifamily property acquisition in 2010, bringing the firms holdings in the California market to 10 multifamily communities.
“Medowbrook Apartments is located in a very desirable, supply-constrained community within the job-rich Tri-Valley Region of the Bay area,” says Allen. “These factors have enabled the property to maintain a high occupancy rate and consistent rental income despite the current economy, making it an attractive long-term investment for Raintree.”
The property was brokered by John McCulloch, Curtis Gardner and Kenneth Meislin of ARA Pacific and financing was provided by Fannie Mae and arranged by Richard Olrich of Centerline Capital Group.
“The acquisition of Meadowbrook Apartments is consistent with Raintree’s strategy of buying well-located 15- to 30-year old properties in strong markets and with the potential to add value through rehab and repositioning”, says Aaron Hancock, director of acquisitions for Raintree.
Hancock added that Meadowbrook Apartments is comprised of nine, two-story buildings located at 156 North Murrieta Blvd. in Livermore. The property was built in 1981 and offers one-, two- and three-bedroom floor plans. Select units feature wood-burning fireplaces, while each unit contains a private patio or balcony, and air conditioning. The apartment community offers a swimming pool, covered parking, basketball court, children’s play area and two laundry centers.
According to Jason Check, Raintree’s development director, “Raintree plans a full re-positioning of the asset. This re-positioning will include upgrades to the signage, exterior upgrades including paint, and landscape improvements, as well as upgrades to the community’s amenities. Raintree will also conduct full renovation of the individual unit interiors including upgraded cabinets, countertops, appliances, flooring and fixtures.”
“With the acquisition of Meadowbrook, we have acquired eight, class A and B properties in very desirable markets in California this year,” says Hancock. “Raintree plans to continue seeking out appropriate opportunities in 2011. As a ‘buy and hold’ multifamily investment company, we see these value-add type of properties as attractive long-term investments for us,” adds Hancock.
Raintree Partners, formed by Allen in December 2007, is a private real estate investment company whose objective is to create value through the acquisition, development and redevelopment of multifamily properties in West Coast markets. Raintree invests through a partnership with a major institutional investment management company which committed $200 million of equity capital to the venture.