Los Angeles-based real estate investment and asset management firm Gelt Inc. has acquired a two-property apartment portfolio totaling 588 units in San Antonio, Texas. The adjacent properties are the 288-unit Barcelo at 3501 Pin Oak Drive and the 300-unit Melia at 3431 Oakdale.
“Perhaps the biggest challenge when acquiring properties in a particular city and state for the first time, as we did with Barcelo and Melia, is finding and utilizing local resources to assist with due diligence, capital and expenditures projects, and gaining a full understanding of the local market and economy,” Jeff Harris, Gelt Inc. COO, told MHN.
“Through the diligent work of the Gelt acquisitions team, asset-management team, transactions team, and tapping into our resources to find exceptional local talent in San Antonio to assist with due diligence and the future management of the projects, we navigated the challenge of entering a market for the first time with ease. San Antonio is a market we plan to invest in for the long term.”
Over the last half decade, the communities have each gained new clubhouses with large, upgraded kitchens and ample seating, as well as fitness centers with new cardio equipment. Both properties feature well-maintained park-like grounds, swimming pools, charcoal grilling stations, leasing offices and business centers. Despite substantial capital outlays from which both communities have benefited, Gelt intends to add additional value to each property.
The communities feature one-, two- and three-bedroom floor plans with units averaging 938 square feet. Each includes a separate building housing its clubhouse, fitness center and business center. Built in 1972, Barcelo is situated on 14.2 acres, includes 18 two-story residential buildings and is 94 percent occupied. Built in 1976 and located on 15.85 acres with 26 two-story residential buildings, Melia is 95 percent occupied.
“Upon identifying Barcelo and Melia as investment opportunities, we quickly noted two well-located, well-maintained assets with immediate access to the 10 and 410 freeways, and also proximity to an array of job centers,” Harris said.
“While the seller executed a successful value-add program through the addition of amenities and renovating approximately half the units, we see opportunity for continued community improvement through the addition of multiple dog parks, sports courts and other community-building amenities we believe will help attract and retain tenants seeking an amenity-rich living environment. We will also modernize the remaining half of the un-renovated units with vinyl plank flooring, new appliances and fixtures.”
The communities are situated adjacent to the 10 and 410 Freeway intersection, and put residents within a 15-minute drive of downtown San Antonio. An array of employment hubs, including the USAA headquarters, South Texas Medical Center and Hulu call center, are located nearby. Brand-name retailers are also close at hand.