A 564-unit apartment complex in Denver has sold for the second time in as many years, this time for $74 million. Gelt Inc,. a Los Angeles-based real estate investment and management firm, has acquired 3300 Tamarac from TruAmerica Multifamily, also headquartered in Los Angeles.
TruAmerica, along with DVO Real Estate and RCG Longview, acquired the property in March 2014 from Apartment Investment and Management Co. Aimco, (NYSE: AIV) for $55 million. At the time, the property traded for $97,517 per unit. In the most recent sale, 3300 Tamarac sold for $131,205 per unit.
The acquisition is Gelt's largest apartment purchase to date in terms of both units and price. "3300 Tamarac checked all the boxes for our acquisition criteria," said Jeff Harris, director of acquisitions for Gelt. "The seller invested a significant amount of capital in a successful value-add program. We see continued upside through renovation of the remaining classic units and the addition of new amenities such as a bike room, additional storage and an outdoor recreation area."
In total, Gelt's portfolio includes 1,192 units valued at more than $140 million. The firm plans to acquire 2,000 additional units in high-growth infill locations in the U.S. in 2016.
The 3300 Tamarac purchase is Gelt's first in Colorado. "We like the Denver region for investment as it has diverse economic drivers, impeccable migration statistics as a result of job growth, great quality of life and a growing population of millennials. All of these key fundamentals are driving a healthy apartment market," said Keith Wasserman, partner at Gelt.
"We exit Tamarac after meeting our five-year investment objectives in 18 months," said Robert E. Hart, president and CEO of TruAmerica. "It is a large, well-located asset that still offers additional upside for an experienced operator like Gelt."
Earlier this year, TruAmerica paid $71 million for a 561-unit apartment complex in Glendale called Cherry Creek Club Apartments.