LA-based Gelt Inc has come to Denver in a big way, with the acquisition of the 564-unit 3300 Tamarac for $74M. The deal marks the firm’s largest apartment purchase, as well as its first acquisition in Colorado.
According to Gelt director of acquisitions Jeff Harris, the property is both an infill submarket that's grown a lot recently, and it represents a value-add opportunity: a good combo. The previous owner, TruAmerica, put money into the property, and now "we see continued upside through renovation of the remaining classic units and the addition of new amenities, such as a bike room, more storage and an outdoor recreation area.” Front: asset management director Noah Nudell and partner Keith Wasserman. Back: partner Damian Langere and Jeff.
Dating from 1977 and located on 25 acres, the 15-building 3300 Tamarac offers studio, one- and two-bedroom units. Keith says that the company likes Denver for its diverse economic drivers, migration stats—as a result of job growth—and its growing population of Millennials. Keith and Damian are cousins who acquired their first four-plex in 2008. Since then, Gelt has acquired more than 4,200 apartment units in the Western US.
For its part, TruAmerica is selling an asset for the first time, after investing about $2.4B to built a portfolio of more than 14,000 multifamily units in less than three years. TruAmerica CEO Robert Hart, snapped at our annual Multifamily Conference this year, notes the company's exiting Tamarac after "meeting our five-year investment objectives in just 18 months.” It still offers additional upside for an operator like Gelt, he adds.
