Gelt Bets Big On Suburban Denver With $107M Apartment Buy
In its largest deal by dollar amount in any market, LA-based apartment investor Gelt acquired a two-asset, 580-unit apartment portfolio for $107M in Lakewood, but the acquisition has not sated the company's appetite. Gelt partner Keith Wasserman said the company plans to acquire an additional $500M in multifamily nationwide over the next 12 months.
The two properties were Ascend at Red Rocks and Elevate at Red Rocks, which are adjacent to each other.
Developed in 1981 at 13105 West Second Place, Ascend includes 408 units on 16.5 acres, and offers one-, two- and three-bedroom units. Common amenities include a 24-hour fitness center, a heated swimming pool, a recently renovated clubhouse, a volleyball court, barbecue grills and laundry rooms.
Elevate at Red Rocks, developed in 2000 at 409 Zang St., includes 172 units on 9.5 acres. It offers one-, two- and three-bedroom units and similar amenities as Ascend.
One reason Gelt was willing to bet on the future health of these properties is their location near the Union Boulevard/Federal Center area, which is the largest employment center in Lakewood. Anchored by the Denver Federal Center, the 1,000-acre area employs more than 13,000 people.
“With one asset built in 2000 and the other built in 1981, we liked this stabilized portfolio’s blend of newer and older product, which offers two different rental price points,” Gelt Chief Operating Officer Jeff Harris said.
“Buying two assets immediately adjacent to each other also allows us economies of scale on our expenses, and building scale to our already existing Lakewood portfolio, which now totals 980 units in three properties.”
Harris said Gelt plans to add value by upgrading some of the units that previous ownership did not renovate. At Elevate, Gelt will modernize the existing leasing office, clubhouse and playground. At Ascend, Gelt will update the gym and add a dog park, a sports court and a gazebo/lounge barbecue area.
The seller of the portfolio was FPA Multifamily, a private equity firm specializing in core-plus and workforce housing apartment communities. David Martin of Moran & Co. brokered the deal on behalf of both the buyer and the seller.
