By Tudor Scolca
Gelt Inc. sold a 150-unit apartment community in Phoenix. CBRE represented both the seller and the buyer, Baron Properties. The property traded for $19.6 million. The sale was subject to an acquisition and development loan of $15.8 million, held by American National Insurance Co., which is due 2022, according to Yardi Matrix.
Gelt acquired the apartment community in 2012 for $9.3 million. The company completed several renovations, as well as a repositioning plan, including changing the name of the property to Capella Place, repainting the exterior, adding a perimeter fence with a security gate, adding barbecue areas and a pergola. The company has similar plans with a recently-acquired multifamily property in Albuquerque.
“Gelt recognized a prime opportunity to add significant value to Capella Place by making strategic improvements and creating operational efficiencies. In addition to taking advantage of the value-added play, the low cap rate environment driven by low interest rates, as well as the property’s high-growth location, made this a well-timed disposition,” said Keith Wasserman, partner with Gelt Inc., in a prepared statement.
The CBRE team that brokered the transaction included Vice Chairmen Tyler Anderson and Sean Cunningham, as well as Senior Vice President Asher Gunter.
Capella Place is located at 1212 Bethany Home Road, on 4.8 acres, in Phoenix’s Camelback submarket. The property’s 18 buildings include 76 one-bedroom, 67 two-bedroom, one three-bedroom and six studio units. Common amenities include a 24-hour laundry facility, a clubhouse, a swimming pool and spa, a fitness center and a barbecue area. According to Yardi Matrix data, the property is was 96 percent occupied at the time of sale, with a monthly rent averaging $1,026.
The surrounding area provides residents with retail and dining options, with the Camelback corridor only a mile away and 7th Street’s Cinema Park Village Shopping Center within a short walking distance. Madison Rose Elementary is across the street from the apartment community, while several other schools are in close proximity, including The Humanities and Sciences High School, Parkway Children’s School or Madison Meadows Middle School. Several large employment agencies are within five miles of the property.
Image courtesy of Gelt Inc.