CalTier Fund 1 invested in Raintree in May 2021 with our experienced real estate partner, Redstone Residential.
The property is currently 100% occupied with 12.3% pre-leased for the 2023-2024 school year. This is right in line with the market average.
Renovations are continuing to move forward as planned. Currently, a total of 70 apartments have completed renovations with an additional 8 held vacant to finish renovations and the remaining apartments scheduled to cycle through.
Renovations of the common areas were completed before the start of the 2022-2023 academic year, including the new clubhouse and office area, which provides Raintree with a more modern look and feel. The old office was converted into a fully renovated fitness center, which is a high-demand amenity that the property has sorely lacked.
Raintree is currently renting about 3% above original pro forma projections and has produced a 7.64% return on the initial investment amount.
We are expecting continued growth as the property improvements increase rental demand.