PHOENIX-Gelt Inc. has made its first acquisition here, paying $16 million for the 415-unit Ferntree & Colonnade Gardens. The deal marks the Tarzana, CA-based firm’s largest transaction since its inception in 2008.
“We plan on purchasing similar size and quality properties in Phoenix,” says Keith Wasserman, president of Gelt Inc. “We are looking to build a portfolio of 2,000 to 3,000 units in Phoenix.”
Gelt bought the class C apartment property, which is located at 5023 North 18th St. and 1930 East Camelback Rd., from AIMCO. The company plans to rename the property Colonnade Gardens, Wasserman says.
"We have been following the local multifamily market for the past two years and feel that now is the time to take the plunge and purchase our first asset,” Wasserman tells GlobeSt.com, adding that Gelt first looked at the property a year ago when it was first brought to market by Jim Crews of Cushman & Wakefield’s local office. “We felt that the timing was a little early, and we just waited. We were right on our timing. Fundamentals in the local market and especially the property have really improved. We feel that we have caught the upswing at just the right time.”
Wasserman says Colonnade Gardens’ location was quite appealing. “This property's irreplaceable location will always demand renters looking for affordable living in a great location,” he explains. The property is situated in the Camelback Corridor submarket within walking distance to prime shopping areas, office buildings and other amenities.
“When we acquired the property it was close to fully leased,” Wasserman notes. “The property was also well maintained. We are confident that there will be lots of upside potential over time.”
Part of that upside potential is tied to the Phoenix economy, Wasserman contends, adding that he has been a regular visitor to the Phoenix area for more than 25 years. “I have seen the transformation of the terrain from a relatively small city into a large metropolitan powerhouse,” he says. “We are very bullish on Arizona and feel that the dynamic Phoenix economy will emerge very strongly from the current recession. Arizona's business friendly environment, affordable living and great weather will continue to make it an attractive city for people to live. New high tech industries are paving the way for higher paying jobs and new auxiliary businesses.”
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