|Gelt Inc has acquired a two-property apartment portfolio totaling 588 units in San Antonio, TX. The two adjacent properties include Barcelo, a 288-unit community located at 3501 Pin Oak Drive, and Melia, a 300-unit community located at 3431 Oakdale.
“This is Gelt’s first acquisition in Texas and we are thrilled to have acquired this sizable, side-by-side apartment portfolio to mark our entry into the state,” said Keith Wasserman, partner with Gelt. “With some of the best population growth in the country, a diverse set of economic drivers, and sound multifamily fundamentals, we see San Antonio as an ideal apartment market for long-term ownership.”
Over the past five years, the two multifamily communities have each benefited from the addition of a new clubhouse with large, upgraded kitchen and ample seating, and a fitness center offering an array of new cardio equipment. Although both assets have undergone significant capital investment, Gelt plans on adding further value to the Barcelo and Melia communities.
In addition to the clubhouse and fitness center, both assets feature well-maintained grounds in a park-like setting, a swimming pool, a number of charcoal grilling stations, a leasing office, and a business center. They feature one-, two- and three-bedroom floorplans with units averaging 938 sf.
Barcelo was built in 1972 and is 94% occupied. Situated on 14.2 acres, the property includes 18 two-story residential buildings.
Melia was built in 1976 and is 95% occupied. Situated on 15.85 acres, the property includes 26 two-story residential buildings. They each include a separate building that houses the clubhouse, fitness center, and business center.
The communities are well-located immediately adjacent to the intersection of the 10 and 410 freeways, offering residents quick access to downtown San Antonio via a 15-minute drive. There is a variety of brand name retailers and a large number of economic drivers nearby including the USAA headquarters, South Texas Medical Center, and HULU call center. The properties are within two miles of the South Texas Medical Center, and residents can conveniently access numerous additional nearby employers and retail centers.
Jeff Harris, COO with Gelt, noted, “While the seller executed a successful value-add program through the addition of amenities and renovating approximately half the units, we see the opportunity for continued community improvement through the addition of multiple dog parks, sports courts, and other community-building amenities that we believe will help attract and retain tenants seeking an amenity-rich living environment. We will also modernize the remaining half of the un-renovated units with vinyl plank flooring, new appliances, and fixtures.”
San Antonio is located within the Central-South region of Texas and is the seventh-largest city in the United States. Currently, USAA, H-E-B, Rackspace, Valero Energy, Tesoro, Clear Channel Communications, Toyota, Caterpillar, Microsoft and Citibank have established major presences in San Antonio. Additionally, San Antonio is the number one tourist destination in Texas with the tourism industry employing in excess of 100,000 people. The Alamo, Riverwalk, Six Flags Fiesta Texas, Sea World San Antonio, Texas Hill Country, Market Square, historic Missions, and La Villita Historic Arts Village, offer entertainment and recreation unparalleled by most cities of its size.
Charles Cirar, Michael Wardlaw, and Colin Cannata of CBRE represented the seller, FPA Multifamily LLC, in the transaction. The price was not disclosed.