SAN DIEGO-Laguna Niguel, CA-based Raintree Partners has completed the acquisition of Trieste Apartment Villas, a 302-unit multifamily community in the La Jolla area of San Diego. The purchase price was $68.2 million, according to Jeff Allen, CEO of Raintree Partners.
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%, 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.
“Trieste Apartment Villas is a perfect match for Raintree Partners’ long-term investment strategy,” Allen says. “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”
Kevin Mulhern, Dixie Hall and Rachel Hemingway of CB Richard Ellis Inc. represented the seller, Trieste Apartments LLC. Raintree Partners represented itself. Raintree sources could not release the seller’s name; however CBRE’s Mulhern tells GlobeSt.com that the seller was an entity of LaSalle Investment Management on behalf of a separate account client that they advise. In terms of interested buyers, Mulhern tells GlobeSt.com that there were approximately 35 offers on the property.
According to Jason Check, Raintree’s development director, Raintree has planned several upgrades in addition to the unit interiors to improve the 250,336-square-foot 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 Ave. 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% 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’ 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.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
