(Mark Your Calendars for RealShare Distressed Assets 2011, October 4-5 in Dallas, and also for RealShare Apartments 2011, October 20 in Los Angeles).
BURBANK, CA-Raintree Partners of Laguna Niguel has acquired the 43-unit Taiko Village condominium project at 1601 Scott Rd. from a regional bank for $14 million and plans to complete construction, then rent the units as apartments. Jeff Allen, CEO of Raintree Partners, explains that, "Taiko Village was originally constructed as for-sale condominiums in 2009, but the project was never opened. We will complete the small amount of finish work that remains at the property, obtain the certificate of occupancy, and then rent the units out as apartments.”
Allen points out that Raintree is a buy-and-hold investor. “ We focus on properties that will be solid long-term investments,” he says. “Taiko Village, which was designed and built to high quality condominium standards, will be positioned to meet an underserved market for professionally managed, upscale rental residences in the Burbank area.”
Aaron Hancock, director of acquisitions for Raintree added, "Although the property was 100% vacant at acquisition, as no move-ins took place under the previous owner, we are confident in the investment potential of this development as a class A apartment community.” Hancock points out that the complex is within 15 minutes of significant employment centers including Walt Disney Co., Warner Bros Inc. and NBC Universal Inc., driving housing demand in the area. The property is also less than a mile from downtown Burbank and various neighborhood retail centers, and about one-half mile to the I-5 freeway, making it an attractive location to renters, Hancock says.
Taiko Village consists of three buildings on 1.12 acres, with a mix of four one-bedroom flats, one two-bedroom/one bath flat, 31 two-bedroom/two and one-half bath townhomes and eight three-bedroom/two bath flats. The units average 1,361 square feet and include granite counters, upgraded stainless steel appliances, full-size washers and dryers and central air conditioning and heating.
Raintree was represented in the acquisition by KW Commercial's senior vice president Hirsch Sherman and vice president Jared Levine. The acquisition of Taiko Village brings Raintree's holdings in California to 12 multifamily communities, with more than 1,800 apartment units, according to Allen, who founded Raintree Partners in December of 2007. The privately held company invests through a partnership with a major institutional investment management company that committed $200 million of equity capital to the venture.
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