LOS ANGELES—Raintree Partners has acquired a five-property, 327-unit multifamily portfolio in Los Angeles, GlobeSt.com reports exclusively. The purchase price for the portfolio is undisclosed, but the investor did reveal that it plans to invest an additional $7.8 million to upgrade and reposition the properties.

“This portfolio acquisition is in line with Raintree Partners' investment strategy of acquiring infill, urban properties, with ample value-add opportunity, in great locations in the Los Angeles market,” Jeff Allen, CEO of Raintree Partners, tells GlobeSt.com. “The acquisition of these five properties in addition to the three acquired earlier in the year represents the continued rollout of our investment strategy, which targets smaller properties in A locations within Los Angeles that can be clustered over time. As we gain critical mass in these targeted sub-markets, we will be able to achieve management efficiencies, which should lead to higher returns than investing in larger properties in the same sub-markets, which tend to trade at more aggressive cap rates.”

The largest property in the purchase is Pico Lanai Apartments, a 174-unit community in Santa Monica, CA. Raintree will invest $4.1 million into Pico Lanai Apartments to upgrade the property exterior and common areas, as well as minor interior unit upgrades. The property was built in 1960, and was last updated a decade ago. Curtis Palmer, Peter Sherman, Laurie Lustig-Bower and Kadie Presley Wilson of CBRE represented the seller in the transaction, while Raintree Partners represented itself.

The remaining four properties in the purchase are part of the Westwood Apartments portfolio, which totals 153 units in Westwood Village. Raintree will invest $3.7 million, or $24,000 per unit, to upgrade the interior units in the portfolio. The upgrades will include the addition of quartz countertops, wood grain plank vinyl floors, stainless steel appliances, new cabinets, new plumbing and new light fixtures. The renovations will also include exterior and common area upgrades. Gregory S. Harris, Ronald Z. Harris, Kevin H. Green, Joseph V. Grabiec, Paul H. Darrow and Michael J. Disimone of Institutional Property Advisors represented the seller in the transaction, while Raintree Partners represented itself.

This portfolio purchase brings Raintree Partners' Southern California portfolio to 21 multifamily properties. Eight of those properties were purchased within the last 10 months, including Coldwater Canyon, a 39-unit property in Studio City, CA, and 5119 Maplewood, a 60-unit property in Hancock Park. The investor also recently refinanced a three-property portfolio in Los Angeles.