LIVERMORE, CA-Laguna Niguel, Calif.-based real estate investmentand development company, Raintree Partners, has completed theacquisition of Meadowbrook Apartments, a 125-unit multifamilyproperty here for $16.7 million. This is Raintree’s eighthmultifamily property acquisition in 2010, bringing the firmsholdings in the California market to 10 multifamilycommunities.

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According to Jeff Allen, CEO of Raintree Partners. “MeadowbrookApartments is located in a very desirable, supply constrainedcommunity within the job-rich Tri-Valley Region of the Bay area.”These factors, he says, have enabled the property to maintain ahigh occupancy rate and consistent rental income despite thecurrent economy, “making it an attractive long-term investment forRaintree.”

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The property was brokered by John McCulloch, Curtis Gardner andKenneth Meislin of ARA Pacific and financing was provided by FannieMae and arranged by Richard Olrich of Centerline Capital Group.Raintree tells GlobeSt.com that it cannot disclose the identity ofthe seller at this time; however Apartment Realty Advisors’McCulloch tells GlobeSt.com that the seller was LexingtonAssociates Inc.

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“The acquisition of Meadowbrook Apartments is consistent withRaintree’s strategy of buying well-located 15- to 30-year-oldproperties in strong markets and with the potential to add valuethrough rehab and repositioning”, says Aaron Hancock, director ofacquisitions for Raintree.

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Meadowbrook Apartments is comprised of nine, two-story buildingslocated at 156 North Murrieta Blvd. The property was built in 1981and offers one-, two- and three-bedroom floor plans. Select unitsfeature wood-burning fireplaces, while each unit contains a privatepatio or balcony, and air conditioning. The apartment communityoffers a swimming pool, covered parking, basketball court,children’s play area and two laundry centers.

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According to Jason Check, Raintree’s development director,“Raintree plans a full re-positioning of the asset. Thisrepositioning will include upgrades to the signage, exteriorupgrades including paint, and landscape improvements, as well asupgrades to the community’s amenities. Raintree will also conductfull renovation of the individual unit interiors including upgradedcabinets, countertops, appliances, flooring and fixtures.”

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Hancock tells GlobeSt.com that Raintree has a totalrepositioning budget of $1.5 million. Hancock adds that “With theacquisition of Meadowbrook, we have acquired eight, class A and Bproperties in very desirable markets in California this year.” Hecontinues that “Raintree plans to continue seeking out appropriateopportunities in 2011. As a ‘buy and hold’ multifamily investmentcompany, we see these value-add type of properties as attractivelong-term investments for us.”

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One of Raintree’s latest investments in California, asGlobeSt.com previously reported,was the company’s acquisition of a two-property apartment portfoliototaling 260 units for $65 million in a transaction that increasedthe Orange County-based company’s San Diego County holdings to $130million. Like Meadowbrook Apartments, the apartments were locatedin a “very desirable area” and “have the potential for attractivelong term growth in the return on our investment as the economyimproves,” according CEO Allen at the time.

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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.