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12/02/15
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Los Angeles-based Gelt Inc has purchased 3300 Tamarac, a 564-unit apartment community in Denver, CO, for $74 mil ($131.2k/unit). The property was acquired from Los Angeles-based TruAmerica Multifamily.
Built in 1977 and situated on just over 25 acres, the 15-building, pet-friendly residential complex offers studio, one- and two-bedroom units ranging from 450 sf to 1k sf in size. The units feature private balconies or patios, fireplaces, and extra storage. On-site amenities include three outdoor swimming pools, a clubhouse, barbecue grills, fitness centers, racquetball court, business center, and a lounge area.
TruAmerica, in partnership with DVO Real Estate and RCG Longview, acquired the community from Aimco in March 2014. The firm, a Los Angeles-based value-add investor, completed an extensive renovation and repositioning of the property prior to the sale. Improvements to the interior units included plank flooring, refreshed color schemes and countertops, lighting and the addition of USB charging ports. The scope of work also included major renovations to the clubhouse and lounge, leasing office and common grounds, in addition to expanded recreation areas and additional state-of-the-art fitness equipment.
This acquisition marks Gelt’s largest apartment property purchase to date in terms of both units and price, as well as its first acquisition in Colorado. According to Jeff Harris, director of acquisitions with Gelt, the company sees continued upside through the addition of new amenities such as a bike room, additional storage, and an outdoor recreation area.
Damian Langere, partner of Gelt, Inc. added: “The area surrounding the property has seen a tremendous transformation in the last few years with the opening of a new Whole Foods two blocks away and Target across the street. The asset’s stellar location ensures a long-term competitive advantage for apartment housing in the local market.”
3300 Tamarac is strategically located at the intersection of the I-25 and the I-225 and is near the northern border of the Denver South Business Corridor. This submarket is home to seven of the nine Fortune 500 Companies in the state; includes more than 40 msf of office space; and offers a growing employment base currently exceeding 300,000 jobs. The asset’s location also puts it within 10 to 20 minutes from some of the largest employment centers in Denver.
David Martin and Pamela Koster of Moran & Company represented both the seller and buyer in the transaction. Brian Eisendrath and Ross Moore with CBRE’s Beverly Hills office arranged $55.6 mil in acquisition financing for the deal. The 10-year fixed-rate loan has a five-year interest-only component at approximately 75 percent.
All told, year-to-date Gelt has acquired a total of 1,192 units valued in excess of $140 mil. The firm’s target for 2016 is aimed at acquiring 2,000 additional units within high growth infill locations throughout the Western United States.
Tamarac is the first asset sale for TruAmerica, which has invested approximately $2.4 bil building a portfolio of more than 14,000 units in its first two-and-a-half years of existence. The firm continues to see Denver as an attractive market for multifamily investment as demand for affordable quality apartments far outpaces supply. In September, TruAmerica acquired the Cherry Creek Club, a 561-unit community for $71 mil. With the sale of Tamarac, TruAmerica’s Denver portfolio totals 1,675 units.
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