DENVER, CO – Gelt Inc., a Los Angeles-based real estate investment and asset management firm, announced it has acquired Cedar Run Apartments for $62 million. The 384-unit apartment community is situated on 14 acres at 888 South Oneida Street in Denver.
Built in 1970 and partially renovated between 2012 and 2017, the property includes nine residential buildings with 240 one-bedroom units and 144 two-bedroom units with an average size of 846 square feet. It also features one 27,000-square-foot clubhouse building with two racquetball courts, indoor pool, fitness center and conference room spaces. Other on-site amenities include two outdoor pools, three courtyards with picnic and BBQ areas, playground, a sand volleyball court and covered parking.
“Cedar Run was an investment opportunity we quickly identified as one we wanted to add to our growing apartment portfolio as it checked all the boxes of our investment criteria. Namely, this is a well-located, infill workforce housing asset in Denver with value-add upside via interior renovation and amenity addition,” said Keith Wasserman, partner with Gelt.
Jeff Harris, COO with Gelt added, “Gelt plans to improve the asset through a strategic renovation program to meet the growing demands of renters. This plan will include renovating unit interiors by installing vinyl plank flooring throughout, adding new cabinet faces, hardware, lighting fixtures, as well as resurfacing the countertops. Common area improvements in our enhancement strategy include renovating the leasing office, business center, and gym, and adding a dog park, package locker room, and upgraded BBQ area.”
Josh Satin, Gelt’s director of acquisitions noted, “With the purchase of Cedar Run, Gelt now owns 1,900 units in Denver. Our goal is to add another 2,000 units to our portfolio here over the next two years. The metro Denver area is projected to continue to grow in population and jobs over the coming years, making this region a solid, long-term investment for apartment assets.”
Cedar Run is in the center of a number of major employment hubs including: The DTC Business Corridor (175,000 employees) Downtown Denver, (133,500 jobs) the Fitzsimons Life Science District, (45,000 employees) and Cherry Creek (20,000 employees). It is also just two miles from the 500,000-square-foot Gardens on Havana Shopping Center which includes Target, Sprouts Farmers Market, Starbucks, and Kohl’s among others.
Newmark Knight Frank Vice Chairmen Terrance Hunt and Shane Ozment represented the seller, Maxx Properties in the transaction. Newmark Knight Frank Executive Managing Director Mitch Clarfield and Director Ryan Greer provided the 10-year, full-term interest-only debt at 70 percent LTV and a 4.2 percent rate through Freddie Mac’s Green-Up program.
“Over the course of their ownership, Maxx Properties put significant effort into capital improvements and keeping the building systems in great condition,” stated Hunt, “The property’s location and style, with underutilized clubhouse space, provide Gelt the opportunity to take the asset to the next level with their scheduled improvements.”