Kallisto at Bear Creek

Gelt has closed its largest acquisition to date. The firm acquired Kallisto at Bear Creek, a 472-unit apartment property in Denver, for $145.5 million. With this acquisition, Gelt now has a portfolio of more than 2,500 properties in the Denver metro.

"We've always believed in buying large multifamily assets," Jeff Harris, a partner at Gelt, tells GlobeSt.com. "On larger communities, we find we can achieve economies of scale on our expenses, and also build mass in MSAs that we believe in at a faster pace, which in turn leads to further economies of scale on a market-wide level.  We will continue to seek large multifamily assets to add to our portfolio."

Gelt has been an active player in the Denver market. This property gave them the opportunity to purchase a substantial number of units in a highly desired suburb of Denver. "Kallisto at Bear Creek is a well maintained asset with a tremendous amenity set and park-like setting in the highly desirable Lakewood submarket of Denver," says Harris. "While the previous ownership put substantial capital into the asset, we see an opportunity for continued upside remaining through renovation of the remaining un-renovated interiors."

The acquisition was part of a complicated 1021 exchange, but was an ideal fit for the firm's strategy in the market. "We had three 1031 exchanges to place as a result of three dispositions last year, and we found Kallisto to be the perfect investment in regards to a home for these trades," adds Harris. "The deal fits into our investment strategy of buying large, well maintained multifamily assets with continued upside remaining via renovations, located in thriving western MSAs, with strong multifamily investment fundamentals.

Gelt isn't planning on slowing down, although the market is getting highly competitive. This recent acquisition was particularly competitive. "The environment was highly competitive," says Harris. "We won due to our track record of closing large investments and strong reputation in the marketplace." The firm plans on acquiring $300 million in multifamily assets in 2020, leveraging its reputation to win deals.

Of course, Denver will continue to be a target market for Gelt, which likes the market characteristics. "Job growth, population growth, wage growth, and rent share of wallet all trend the right way in Denver, driving multifamily fundamentals and the continued health of our investments there," says Harris. "Our long-term outlook remains bullish."

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

Denver
Multifamily
Capital Markets