(Save the dates: RealShare Apartments East comes to the Hyatt Regency in Miami, FL, on February 26, and RealShare Los Angeles comes to the Hyatt Regency Century Plaza in Los Angeles, CA, on March 27.)
SHERMAN OAKS, CA-As GlobeSt.com reported exclusively earlier today, Laguna Niguel-based investment and development company Raintree Partners has acquired the Plaza at Sherman Oaks, a 392-unit luxury apartment at 4500 Woodlman Ave. here, for $77 million from a seller whose identity was not disclosed to GlobeSt.com. The property contains eight three-story buildings including studio, one- and two-bedroom units, as well as 20 three-story townhome villas.
Amenities include a tennis court, basketball court, volleyball court, putting green and resort-style pool with two spas and grilling stations. In addition, the property contains a three-story clubhouse that features a business center, fitness center, steam room, tanning room, lounge areas with fireplaces and flatscreen televisions and a 29-seat theater. The third floor of the clubhouse also features 1,500 square feet of commercial office space in six units, all of which are currently leased.
The Plaza was built in 1969 and underwent extensive common-area renovations between 2009 and 2012. In order to drive returns in the investment, Raintree plans to renovate the unit interiors to match the quality of the amenities the property offers. The unit interior updates will include granite counters, new appliances, new cabinets, new wood-grain plank vinyl flooring, new carpet, new lighting and plumbing packages and new paint.
Marc Renard of Cushman & Wakefield represented both the buyer and the seller in the transaction. Financing for the acquisition was secured by Troy Tegeler of CBRE and provided by Freddie Mac.
The acquisition brings Raintree’s holdings in California to 17 multifamily communities consisting of approximately 2,800 units. “This community is one of the largest and most accessible properties in the very supply-constrained Sherman Oaks rental market,” said Jeff Allen, Raintree’s CEO, in a prepared statement. “We moved quickly to acquire this property, which is located in a densely populated area near many of the film studios.”
Aaron Hancock, Raintree’s director of acquisitions, added that as a former Oakwood property, “the Plaza offers the best amenities of any community in the Sherman Oaks area, a compelling draw for any renter, and especially the affluent renters that often seek luxury apartment living in this neighborhood.”
In addition, Hancock noted that the property is adjacent to the 39-unit Villa Sofia, a high-end condominium property the firm acquired vacant in 2011 and leased as rental condos. “We will combine the operations of the Plaza and Villa Sofia, creating operating efficiencies for both properties. In addition, we will be able to offer the residents at Villa Sofia access to the extensive amenities offered at the Plaza.”
Hancock tells GlobeSt.com, “As a developer and owner of multifamily properties, our objective is to create attractive living environments, both inside and out. The exterior of this property is already fully updated, and the improvements we are planning for the interiors will ensure that residents also have modern, comfortable spaces in which to live.”
As GlobeSt.com reported last week and later updated, Raintree has begun construction on a ground-up multifamily development project called 201 Marshall in Redwood City, CA. The project, a 116-unit, seven-story community next to the Caltrain station in the heart the City’s expanding downtown, is the first large project approved under Redwood City’s Downtown Precise Plan.
How do you feel about amenities in the multifamily sector these days? What would you like to see more or less of in the market? Give your opinion in the comments section below.