Gelt Inc. has expanded its Southern California footprint with the acquisition of Volta on Pine, a 271-unit multifamily property in Long Beach, Calif. The company acquired the asset for $156 million from developers Holland Partners and North America Sekisui House.
Walker & Dunlop represented the sellers in the transaction. The firm also worked on behalf of Gelt to secure a $91.3 million acquisition loan from Nuveen.
Volta on Pine includes 1,300 square feet of ground-floor retail and 11 affordable units. Architecture studio MVE + Partners designed the 285,415-square-foot project, which was delivered in July 2021.
The community encompasses two eight-story buildings on more than 1 acre at 635 Pine Ave. The two eight-story buildings offer 93 studios, 94 one-bedroom units, 66 two-bedroom units and 18 three-bedroom floorplans. Units range from 467 to 1,422 square feet and are fitted with stainless steel appliances and quartz countertops. Residents have access to a gym, clubhouse, swimming pool, spa and approximately 340 parking spaces.
Located in the heart of Long Beach, the community is close to various entertainment and dining venues. The property is also less than 2 miles from the waterfront and 25 miles south of downtown Los Angeles. The Pacific Avenue Station of the Metro Blue Line-Light Rail is within walking distance.
A Walker & Dunlop team led by Managing Director Blake Rogers, Director Alexandra Caniglia, Associate Director Kevin Sheehan, Managing Director Hunter Combs and Senior Director Javier Rivera represented the sellers, while the team that arranged the financing on behalf of the buyer included Managing Directors Mark Grace and John Montakab, and Senior Managing Director Trevor Fase.
Job growth drives multifamily demand
With the acquisition of Volta on Pine, Gelt’s Long Beach portfolio adds up to nearly 1,000 units. In July of last year, the company paid $54.7 million for Elevate Long Beach Apartments, a 160-unit property within half a mile of the new asset. The company plans to expand its Southern California portfolio, but will also be looking to acquire assets in Denver, Salt Lake City and Portland, Ore.
Demand for Long Beach multifamily properties is on the rise, boosted by an increase in employment opportunities in Greater Los Angeles. According to the latest Yardi Matrix report, the metro saw a 6.1 percent job growth in the six months ending in October 2021.
In June of last year, Relativity Space announced plans to move to a 93-acre former Boeing plant adjacent to the Long Beach Airport, bringing some 2,000 jobs to the area. The move was slated for the start of this year.
With a moderate construction pipeline and a scarcity of land available for new projects, Greater Los Angeles is likely to see demand for rental communities persist going forward. As of December 2021, completions represented 2.1 percent of existing inventory.