LOS ANGELES, CA – Marking its first acquisition in Oregon, Gelt Inc., a Los Angeles-based real estate investment and asset management firm, has acquired Powell Valley Apartment Homes for $39.5 million. The 228-unit apartment community is located at 1500 SW Pleasant View Drive in Gresham, a suburb of Portland. The seller was Jackson Square Properties.
“Powell Valley Apartment Homes is an ideal asset to add to our expanding portfolio,” said Keith Wasserman, partner with Gelt. “We liked that this well-maintained garden-style asset is in Gresham, a strategically located Portland submarket with minimal multifamily product being developed over the past several years, and a very limited pipeline of future development. Subsequently, Gresham is experiencing some of the best rental apartment metrics in the nation as occupancy is hovering close to 100 percent.”
Wasserman added: “The Portland region’s job market has grown at a strong pace in recent years. This, coupled with significant in-migration into the area has led to an increasingly high demand for apartment units.”
Built in 1999 and situated on 9.23 acres, the property includes 18 residential buildings as well as a newly renovated clubhouse building with a leasing office, 24-hour fitness center, conference room and internet café. Other on-site amenities include a swimming pool, year-round covered spa, an outdoor playground, a dog run, and covered garages. The property includes 38 one-bedroom units, 186 two-bedroom units, and four three-bedroom units. Each unit has a full-size washer and dryer, large deck or private patio, and exterior storage closet.
The seller recently renovated approximately 92 unit interiors with modern upgrades. In order to tap into renter demand for high-end finishes, Gelt plans to immediately embark on adding value to the asset by renovating approximately 100 additional units with vinyl plank flooring, stainless steel appliances, new fixtures, window covering, and new cabinet faces.
“As a private equity firm focused on the multifamily sector, the strong fundamentals in the Portland market indicate to us that the area is primed for consistent, long-term growth and subsequently will provide strong returns for Gelt and our investors,” said Jeff Harris, director of acquisitions with Gelt. “We are thrilled to have acquired our first property in the Portland region, and we are looking to continue purchasing well-located multifamily assets in this market.”
Gresham is located on the eastern edge of Portland, and is Oregon’s fourth largest city. With a population of more than 109,000 residents, it is the second largest city in the Portland/Vancouver region. Gresham not only benefits from a key location just 15 minutes from downtown Portland, it is also home to major corporations which employ thousands of people including Subaru, Boeing, Microchip, Xerox, U.S. Bank.
Tyler Johnson, Cody Hagerman, Greg Frick and Rob Marton of HFO Investment Real Estate represented both the buyer and seller in the transaction. The financing was arranged by Brian Eisendrath and Cameron Chalfant at CBRE.
Since the company's inception in 2008, Gelt has acquired more than 5,000 apartment homes valued in excess of $750 million. The firm continues to focus its efforts on acquiring value-add apartment communities with a minimum of 100 units within high growth infill locations throughout the Western United States with its target markets including Denver, Salt Lake City, Portland, Seattle, Reno, the San Francisco Bay Area, and Los Angeles. The company plans to acquire up to 1,000 units in Portland by the end of 2017.
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 help its properties run smoothly.