Gelt Acquires Anaheim Apartments for $146M
- Sep 17, 2021
Bullish on the Southern California market, Gelt has acquired a 312-unit community in Anaheim, Calif., for $146.5 million.
JLL’s Sean Deasy, Ryan Fitzpatrick and Chelsea Jervis represented both sides of the transaction, including the seller, a joint venture led by Redhill Realty Investors.
Located at 3530 E. La Palma Ave., The Oasis Anaheim’s apartments are spread throughout two four- and five-story buildings on a more than 5-acre site. The one- and two-bedroom units average approximately 937 square feet with some units designed as lofts and townhomes. The Class A community’s amenities include a pool, fitness center, clubhouse, business center, barbecue grills and 626 parking spaces. According to Yardi Matrix data, the community is 94.9 percent occupied.
The Oasis Anaheim is also situated within the Anaheim Canyon mixed-use development which includes office space, shopping centers and hotels. The transit-oriented community is also located next to the Anaheim Canyon Metrolink station and Interstate 5 and Routes 55, 57 and 91.
Josh Satin, vice president of acquisitions of Gelt, said in prepared remarks that the seller renovated roughly 30 percent of the units at The Oasis Anaheim. Redhill first acquired the community in January 2018 for $106 million from Sares-Regis Group, according to Yardi Matrix data.
Satin added in his prepared statement that Gelt will complete similar upgrades to the remaining 217 units that will include quartz countertops, stainless steel appliances, hardwood-style plank flooring, tile kitchen backsplash, under-mount sink with gooseneck faucets, and modern cabinetry and hardware.
GELT’S SOUTHERN CALIFORNIA STRATEGY
Keith Wasserman, partner at Gelt, said in prepared remarks that the company historically looked for properties outside of California but has recently been active in the state.
The company has made a strategic move to add to its Southern California portfolio because of the lessening arbitrage in cap rates between secondary and primary markets, Wasserman also said in his prepared statement.
Wasserman also said in prepared remarks that Gelt is bullish on the multifamily fundamentals of Southern California in the long term. According to Gelt, the pocket of Anaheim that The Oasis Anaheim is located in has vacancy rates hovering at under 3 percent.
Building on its Southern California portfolio, Gelt acquired a 160-unit community in Long Beach, Calif., for $54.7 million in July. Currently, the company and its affiliated companies own and manage six communities totaling 833 units in Southern California, along with a 665-unit self-storage building. Gelt also previously had six additional assets totaling 632 units in the market that it has since successfully exited.