PHOENIX-A little more than a month after shelling out $15 million for the 240-unit Versante Apartments in Tempe, AZ, Gelt Inc. is back at it again, this time acquiring the 92-unit La Paz. The Tarzana, CA-based buyer paid $6 million for the class B apartment, and according to Gelt partner Keith Wasserman, the asset was appealing due to its location.
"We love the submarket there," Wasserman says. "There are a lot of new employers in the area, plus it's close to the Camelback Corridor." La Paz, located at 6201 N. 16th St., right around the corner from another Gelt-owned asset, a 150-unit multifamily property at 1212 E. Bethany Home Rd., once known as Broadstone on Twelfth, and now named Capella Place.
Wasserman tells GlobeSt.com that La Paz will also have a new name, but what that name is has yet to be decided. There is also upside in that "the property has been well-maintained, but will need some interior renovations," Wasserman says. He acknowledges that while La Paz, at 92 units, is somewhat smaller than Gelt Inc.'s strategy of investing in multifamily properties with a minimum count of 100 units, La Paz's location and upside potential appealed to the buyer.
Linda Fritz-Salazar, an associate broker with Phoenix-based Kasten Long Commercial Group represented the seller in the transaction. According to the Maricopa County Assessment District, the seller operated under the name of TWF Properties Three LLC, and is located in Brooklyn, NY.
Though Gelt Inc. has been steadily buying up Phoenix-area properties for the past couple of years, Wasserman acknowledges that it's tougher to find quality deals in the region. Gelt Inc.'s sweet spot involves apartment properties at least 100 units and in A and B locations. However, "as the weather heated up, so did the market," Wasserman says. "We feel like the low-hanging fruit here has been picked." As such, Gelt Inc. is also examining likely buys in areas such as Salt Lake City, Las Vegas and Sacramento. "We're trying to diversify our portfolio," Wasserman adds.
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