TEMPE, AZ—The Huntington Apartments have been sold for $34.6 million, netting Gelt investors a cumulative return of approximately 54% and an annualized return of approximately 36% during the 18-month ownership period. The Huntington, which is located at the intersection of Mill Ave and the 60 freeway, is in close proximity to Arizona State University and numerous high-profile employers. The property was purchased from Bank of America Development Corporation as two separate assets, Mill Pointe and 201 West, for a total of $27.35 million.

Keith Wasserman of Gelt tells GlobeSt.com: "The Huntington provided us a great opportunity to increase NOI ahead of schedule and realize a sales price that exceeded our investors' return threshold in an accelerated amount of time."

Upon takeover, Gelt merged the two assets into one community, turning one of the leasing offices into a two-bedroom unit, which is an extra income-producing unit to the property. Additional improvements included an improved pool area. Gelt was able to achieve expense reductions and increased the effective gross income through rent growth, positive bad debt, and the reduction of vacancy and concessions. Ultimately, Gelt increased the net operating income by 36.23% from the previous ownership's.