|Los Angeles-based Gelt Inc has acquired a two-asset, 580-unit apartment portfolio for $107 mil ($184.5k/unit). Located in Lakewood, CO, a thriving suburban market approximately eight miles west of downtown Denver, the adjacent properties include Ascend at Red Rocks (480 units) and Elevate at Red Rocks (172 units).
Ascend and Elevate are located just minutes from the Union Blvd/Federal Center area, which is the largest employment center in Lakewood. Anchored by the Denver Federal Center, this 1,000-acre area employs more than 13,000 people. Lakewood’s other economic drivers include the St. Anthony Medical Campus, Lakewood Tech Center, Red Rocks Community College, and the Colorado Mills Mall. Lakewood is Colorado’s fifth largest city with 149,000 residents.
Following are details on each property:
Ascend at Red Rocks: Built in 1981 and located at 13105 W. 2nd Place, the property is comprised of 408 units and is situated on 16.54 acres. The asset offers one-, two-, and three-bedroom units ranging from 850 sf to 1.3k sf. Community amenities include a 24-hour fitness center, heated swimming pool, recently renovated clubhouse, media and business center, volleyball court, BBQ grills, and laundry rooms.
Elevate at Red Rocks: Built in 2000 and located at 409 Zang St, the property is comprised of 172 units and is situated on 9.57 acres. It offers one-, two- and three-bedroom units ranging from 673 sf to 1.1k sf. Community amenities include a 24-hour fitness center, heated swimming pool, recently renovated clubhouse, media and business center, volleyball court, BBQ grills, and laundry rooms.
“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 subsequently offers two different rental price points,” said Jeff Harris, COO with Gelt. “Buying two assets immediately adjacent to each other also allows us economies of scale on our expenses, not to mention building scale to our already existing Lakewood portfolio which now totals 980 units in three properties.”
Gelt plans to add value by upgrading some of the units that weren’t already renovated by the previous ownership. Plans include the installation of vinyl plank flooring, stainless steel appliances, fixtures, and washer/dryers. At Elevate, Gelt will modernize the existing leasing office, clubhouse, and playground. At Ascend, the gym will be updated, and a dog park, sports court, and a gazebo/lounge BBQ area will be added.
The seller of the portfolio was FPA Multifamily, a private equity real estate firm focused on the acquisition, renovation and management of both core plus and workforce housing apartment communities. David Martin of Moran & Company brokered the transaction on behalf of both parties.