MESA, AZ-Less than a year after entering the region with its buy of the Ferntree and Colonnade Gardens apartment complexes, Gelt Inc. added the 269-unit Waterstone Apartments to its Phoenix area portfolio. The California buyer acquired the multifamily property through Auction.com, paying $11.3 million for the class B, 85%-occupied Waterstone.

Adrian Goldstein with Gelt tells GlobeSt.com that there was at first some trepidation in buying the complex at 1651 S. Dobson Rd. through an auction service. However, "as we started to get into it and followed the procedures, it became enjoyable," he comments. "The only caution is you really have to know what you're doing. You can spend a whole lot of time upfront conducting due diligence and end up not getting the deal."

Goldestein explains that Waterstone came to Gelt's attention about a year ago; at that time, it had been headed toward foreclosure under the auspices of special servicer LNR. "We liked what we saw, we tracked it, and eventually it was picked up by Auction.com," he says, adding that Gelt was well prepared to buy the asset. Jeff Sherman of Colliers International helped broker the transaction, while Chuck Wolter of Archetype Mortgage arranged a $7 million bridge loan to help facilitate the transaction.