LOS ANGELES, CA – Gelt, Inc., a Los Angeles-based real estate investment and asset management firm, has acquired 3300 Tamarac, a 564-unit apartment community, for $74 million in Denver, CO. This marks the firm’s largest apartment property purchase to date in terms of both units and price, as well as its first acquisition in Colorado. The property was acquired from Los Angeles-based TruAmerica Multifamily.
“3300 Tamarac checked all the boxes for our acquisition criteria,” said Jeff Harris, director of acquisitions with Gelt, Inc. “The asset is strategically located in an infill submarket with immediate access to major transportation, key employment centers, and an array of retail options. Additionally, the seller invested a significant amount of capital in a successful value-add program. We see continued upside through renovation of the remaining classic units and the addition of new amenities such as a bike room, additional storage, and an outdoor recreation area.”
Damian Langere, partner of Gelt, Inc. added: “The area surrounding the property has seen a tremendous transformation in the last few years with the opening of a new Whole Foods two blocks away and Target across the street. The asset’s stellar location ensures a long-term competitive advantage for apartment housing in the local market.”
Built in 1977 and situated on just over 25 acres, the 15-building pet-friendly property offers studio, one- and two-bedroom units ranging from 450 to 1,035 square feet which feature private balconies or patios, fireplaces, and extra storage. On-site amenities include three outdoor swimming pools, a clubhouse, barbecue grills, fitness centers, racquetball court, business center, and a lounge area.
“We like the Denver region for investment as it has diverse economic drivers, impeccable migration statistics as a result of job growth, great quality of life, and a growing population of millennials. All of these key fundamentals are driving a healthy apartment market.” noted Keith Wasserman, partner with Gelt, Inc.
3300 Tamarac is strategically located at the intersection of the I-25 and the I-225 and is near the northern border of the Denver South Business Corridor. This submarket is home to seven of the nine Fortune 500 Companies in the state; includes more than 40 million square feet of office space; and offers a growing employment base currently exceeding 300,000 jobs. The asset’s location also puts it within 10 to 20 minutes from some of the largest employment centers in Denver.
David Martin of Moran & Company represented both the seller and buyer in the transaction. Brian Eisendrath and Ross Moore of CBRE procured the debt for Gelt.
All told, year-to-date Gelt has acquired a total of 1,192 units valued in excess of $140 million. The firm’s target for 2016 is aimed at acquiring 2,000 additional units within high growth infill locations throughout the Western United States.
“Our investment strategy for next year will be to continue to look for well-maintained apartment properties that total at least 100 units and offer some degree of upside through renovations and/or improved operations,” said Wasserman. “We are also going to more aggressively target newer urban properties in central business districts which is something we haven’t focused on previously.”
About Gelt, Inc.
Gelt Inc. is a regional real estate investment and asset management company that seeks to acquire properties in strategic markets in the Western U.S. The firm’s philosophy is to be a prudent steward for its investment capital, to invest wisely, with confidence and intelligence in emerging, constrained markets. Gelt seeks appropriate risk adjusted returns while achieving income from current cash flow and appreciation through superior performance of its assets.
Gelt consists of a team of real estate professionals that possess a wealth of knowledge and expertise in law, real estate, finance, property and asset management, and construction.
Additionally, Gelt has developed a free, easy-to-use leasing platform, Domuso.com, which speeds its reservation process and collects online/mobile rental payments. Domuso has also alleviated the upfront costs of moving into an apartment by providing lending as a service option to its residents – a first of its kind in the rental industry. Domuso lends funds to qualified residents for move-in fees such as first month's rent, security deposit, pet rent, pet deposit, and other upfront costs at competitive interest rates.
The firm strives to stay on top of industry trends, and is always on the lookout for new technologies that simplify life for its leasing agents and helps its properties run smoothly.