Raintree Acquires $68.2M Property, Loan Carries 4.18% Interest
- Sep 21, 2010
San Diego– Raintree Partners completed the acquisition of Trieste Apartment Villas, a 302-unit multifamily community in the La Jolla area of San Diego County, Calif. The purchase price was $68.2 million, according to Jeff Allen, CEO of Raintree Partners.
“Trieste Apartment Villas is a perfect match for Raintree Partners’ long-term investment strategy,” Allen explains. “The property is located in the very desirable rental market of University Towne Center, the county’s largest employment corridor and in close proximity to the University of California at San Diego. Trieste is within walking distance to attractive retail, dining and entertainment amenities. The property has maintained a strong occupancy rate and offers a compelling value-add scenario given that more than half of the units remain un-renovated.”
According to Aaron Hancock, Raintree’s director of acquisitions, the property was financed with a 10-year fixed rate loan from Fannie Mae. Hancock indicated that the $44.5 million loan carried an interest rate of 4.18 percent, with 2.5 years of interest-only payments and then a 30-year amortization. The loan was arranged by Greg Reed and Kristen Croxton of Deutsche Bank Berkshire Mortgage.
Kevin Mulhern, Dixie Hall and Rachel Hemingway of CB Richard Ellis represented the seller, Trieste Apartments LLC. Raintree Partners represented itself.
According to Jason Check, Raintree’s development director, Raintree has planned several upgrades in addition to the unit interiors to improve the multifamily property. Upgrades include renovation of the existing clubhouse and relocation of the leasing office. In addition, improvements will be made to the property’s fitness center, along with improved landscaping and signage for the property.
The Trieste Apartments, located at 3950 Mahaila Avenue include one‐ and two‐bedroom units configured as flats, lofts, and a single unit with a townhouse plan. The property consists of 11 buildings on 6.9 acres and is currently more than 95 percent occupied. The property is gated and includes two swimming pools, washer and dryers in the unit interiors, clubhouse, fitness room and business center. The renovation of the units began in 2007. The units have upgrades such as granite counters, upgraded cabinets, stainless steel appliances, new plumbing fixtures in both the kitchen and bathroom, and new flooring throughout the units.
Raintree Partners, formed by Allen in December of 2007, is a private real estate investment company whose objective is to pursue multifamily acquisition, development and redevelopment opportunities 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. Over the past 15 months, Raintree has acquired six multifamily properties in California.