|Gelt Inc has acquired Cedar Run Apartments, a 384-unit apartment community in Denver, for $62 mil, or $161.5k/unit. The property sits on 14 acres at 888 South Oneida St, west of Quebec St off Hwy 83.
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 sf. It also features one 27k sf 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 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 Kohlís among others.
According to Jeff Harris, COO with Gelt, the company plans to improve the asset through a strategic renovation program to meet the growing demands of renters. This 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.
Terrance Hunt and Shane Ozment with Newmark Knight Frank represented the seller, Maxx Properties, in the transaction. Mitch Clarfield and Ryan Greer, also with Newmark Knight Frank, arranged the 10-year, full-term interest-only debt at 70% LTV and a 4.2% rate through Freddie Macís Green-Up program.
Josh Satin, Geltís director of acquisitions noted, ďWith 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.Ē