Gelt Pays $63M for 125-Unit Property in Orange County
Tarzana-based firm plans $3.25 million in upgrades to the 11-year-old building
By Greg Cornfield September 11, 2023 6:35 pm
reprints
Gelt Venture Partners (GVP) is beefing up its multifamily portfolio in Southern California.
The firm announced Monday it agreed to pay $63.2 million for a 125-unit apartment property in Orange County called Union Place as it looks to expand its multifamily portfolio over the next year and a half. Records show the 5-acre asset at 1500 Cherry Street in Placentia, Calif., was owned by an entity run by MG Properties.
“GVP saw this asset as a prime opportunity to realize significant upside by implementing a renovation program targeting luxury upgrades to unit interiors as well as making strategic common area and amenity improvements,” Keith Wasserman, a partner with GVP, said in a statement.
The three-story Union Place was built in 2012 with two- and three-bedroom units averaging 1,238 square feet. The property also features a pool, a fitness center, barbecue areas and a playground.
“We are planning to invest approximately $3.25 million over the next two years to meet area renter demands for modern, luxury product that will set it apart from other rental communities in the submarket,” GVP’s Damian Langere said.
Union Place was originally designed as condominiums, and it is one of three properties with over 100 units built in the past 35 years in Placentia, according to Gelt.
“With a historically high occupancy rate and a current vacancy of less than 4 percent, large unit sizes, and a dense infill location within a coveted school district, this asset is already a successful and distinguished community,” GVP’s Josh Satin sadded. “Given those fundamentals combined with a limited new supply coming to the area, we are confident that once the renovation plan has been executed, Union Place will be well positioned for sustained tenant demand and value appreciation.”
GVP is looking to raise $150 million for its new fund to capitalize on distress from short-term, high-leverage loans over the next three years. Additionally, over the next 18 months, GVP says it wants to acquire up to $400 million worth of real estate throughout Southern California, as well as in targeted markets such as Denver, Salt Lake City, Phoenix and Portland, Ore.
Gelt Venture Partners owns 29 properties with nearly 11,600 units valued at $2.1 billion, according to its website.
Mike Murphy and Rachel Parsons of Berkadia represented both sides of the Union Place transaction.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
