According to Gelt co-founder Damian Langere, the property was in great condition and the transition should run smoothly. “We acquired a property that was completely renovated in 2007 when Bascom spent over $1-million renovating the asset and upgrading it to the A quality project that it is. The property has great bones and minimum deferred maintenance. Bascom has done an excellent job running the property as evidenced by its 100% occupancy and waiting list of prospective tenants,” he says.

Evan Rock, VP Gelt, points out that “This is the type of project that we are targeting—A high quality living environment with lots of amenities and affordable rents.” He explains that the property has a tennis court, two pools, waterways running throughout, laundry hookups and fireplaces in each unit, a gym, and an “excellent location” to top it off.

In terms of Bakersfield’s multifamily market, Adrian Goldstein, a partner at Gelt remains bullish. “Cap rates are continuing to compress and values are continuing to rise on a national level,” he says. “Bakersfield is doing tremendously well from its concentration on oil and agricultural businesses, which are both doing phenomenally.” Additionally, Goldstein says, “Bakersfield has not seen any notable apartment development in over a decade.”

Goldstein explains that the population has grown more than 40% during this time period with little affordable housing stock. “I believe rental growth will be extremely strong for the next three to five years,” he says. “We were able to secure a very attractive fixed rate Fannie Mae loan through Wells Fargo. We locked rate at 5.20% and will enjoy positive arbitrage day one and strong cash flow.”
Gelt retained the services of Apartment Management Consultants as its third party property management for Villa Sienna. Clay Akiwenzie of Wells Fargo arranged the loan for Gelt.

As GlobeSt.com, Gelt has been busy as of late. The firm recently acquired the 415-unit Ferntree & Colonnade Gardens.