LOS ANGELES, CA - Gelt Inc., a Los Angeles-based real estate investment and asset management firm, announced today it has acquired a two-property apartment portfolio totaling 588 units in San Antonio, TX. The two adjacent properties include Barcelo, a 288-unit community located at 3501 Pin Oak Drive and Melia, a 300-unit community located at 3431 Oakdale.
“This is Gelt’s first acquisition in Texas and we are thrilled to have acquired this sizable, side-by-side apartment portfolio to mark our entry into the state,” said Keith Wasserman, partner with Gelt. “With some of the best population growth in the country, a diverse set of economic drivers, and sound multifamily fundamentals, we see San Antonio as an ideal apartment market for long-term ownership.”
Wasserman added, “We will continue to seek additional value-add opportunities in the San Antonio region as well as other high-growth Texas markets to further bolster our market share, and capitalize on economies of scale for our portfolio.”
Over the past five years, the two communities have each benefited from the addition of a new clubhouse with large, upgraded kitchen and ample seating, and a fitness center offering an array of new cardio equipment. Although both assets have undergone significant capital investment, Gelt plans on adding further value to the Barcelo and Melia communities.
“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 drivers,” said Jeff Harris, COO with Gelt.
Harris noted, “While the seller executed a successful value-add program through the addition of amenities and renovating approximately half the units, we see the opportunity for continued community improvement through the addition of multiple dog parks, sports courts, and other community-building amenities that 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.”
In addition to the clubhouse and fitness center, both assets feature well-maintained grounds in a park-like setting, a swimming pool, a number of charcoal grilling stations, a leasing office, and a business center. They feature one-, two- and three-bedroom floorplans with units averaging 938 square feet. Barcelo was built in 1972 and is 94 percent occupied. Situated on 14.2 acres, the property includes 18 two-story residential buildings. Melia was built in 1976 and is 95 percent occupied. Situated on 15.85 acres, the property includes 26 two-story residential buildings. They each include a separate building that houses the clubhouse, fitness center, and business center.
The communities are well-located immediately adjacent to the intersection of the 10 and 410 freeways, offering residents quick access to downtown San Antonio via a 15-minute drive. There is a variety of brand name retailers and a large number of economic drivers nearby including the USAA headquarters, South Texas Medical Center, and HULU call center. The properties are within two miles of the South Texas Medical Center, and residents can conveniently access numerous additional nearby employers and retail centers.
San Antonio is located within the Central-South region of Texas and is the seventh-largest city in the United States. Currently, USAA, H-E-B, Rackspace, Valero Energy, Tesoro, Clear Channel Communications, Toyota, Caterpillar, Microsoft and Citibank have established major presences in San Antonio. Additionally, San Antonio is the number one tourist destination in Texas with the tourism industry employing in excess of 100,000 people. The Alamo, Riverwalk, Six Flags Fiesta Texas, Sea World San Antonio, Texas Hill Country, Market Square, historic Missions, and La Villita Historic Arts Village, offer entertainment and recreation unparalleled by most cities of its size.
Charles Cirar, Michael Wardlaw, and Colin Cannata of CBRE represented the seller, FPA Multifamily, LLC, in the transaction.
About Gelt, Inc. Gelt Inc. is a regional real estate investment and asset management company that seeks to acquire properties in strategic markets in the Western U.S. Since the company's inception in 2008, Gelt has acquired nearly 8,000 apartment homes and mobile home sites valued in excess of $1 billion. The firm’s philosophy is to be a prudent steward for its investment capital, to invest wisely, with confidence and intelligence in emerging, constrained markets. Gelt seeks appropriate risk adjusted returns while achieving income from current cash flow and appreciation through superior performance of its assets.
Gelt consists of a team of real estate professionals that possess a wealth of knowledge and expertise in law, real estate, finance, property and asset management, and construction.
Gelt’s additional entrepreneurial companies include Domuso.com and Gelt Venture Capital. Gelt developed Domuso.com, the first financing-as-a-service resident portal for the $540 billion rental payment industry. Domuso offers online certified and financing options for move-in payments, one-time rent payments, debt payments, refunds, and late payments. The company developed its own proprietary risk scoring model to offer point-of-sale financing utilizing rental application data, property operational data, and historical payment history. Gelt Venture Capital is a seed-stage venture capital firm investing in companies capable of making large global impacts. We believe automation, mobility, robotics, artificial intelligence, and space tech form the fundamental technology layer transforming our world and we focus on applications of these foundational technologies.
The firm strives to stay on top of industry trends and is always on the lookout for new technologies that simplify life for its leasing agents and help its properties run smoothly.
About FPA Multifamily, LLC: FPA Multifamily, LLC is a private equity real estate firm focused on the acquisition, renovation and management of both core plus and work force housing apartment communities. Founded in 1985, FPA has owned over 104,000 apartment units valued at over $11.0 billion. FPA is currently investing through its value-add focused FPA Apartment Opportunity Fund VI which will acquire approximately $1.8 billion of assets and its core plus focused FPA Core Plus Fund IV which will acquire approximately $1.4 billion of assets. Headquartered in San Francisco, FPA also has offices in Irvine, Portland, Denver, Minneapolis, Dallas and Atlanta.