Install errors on gitlab v.8-12 stable using ruby v 2.3.1 with git v2.7.3

Receive the following errors:

bundle exec rake gitlab:setup RAILS_ENV=production'
returns: rake aborted!
returns: Errno::ENOENT: No such file or directory @ realpath_rec - 
/home/git/repositories

I checked the git home and see the following directories, but no 
repositories directory. Should this directory been created prior to the 
bundle command?
gitlab
gitlab-satellites
gitlab-shell



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