Gelt pays $145.5M for Lakewood apts.

Gelt Inc. paid $308,263 per unit for the 472-unit community at 2605 S. Miller Drive in Lakewood.

A Los Angeles-based real estate investment and asset management firm boosted its metro Denver apartment portfolio with its $145.5 million buy of the Kallisto at Bear Creek community.

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Gelt Inc. paid $308,263 per unit for the 472-unit community at 2605 S. Miller Drive in Lakewood.

“Gelt has been attracted to the Denver market because the millennial population has grown four times’ the national average, and job growth has more than doubled the national average. At 27%, we also like the relatively affordable rent-to-income ratio when compared to other Western cities,” said Josh Satin, director of acquisitions with Gelt. “This year, we are continuing to pursue additional assets offering a valueadd upside in this region.”

Built in two phases in 1987 and 1996, Kallisto at Bear Creek had undergone some updates, which Gelt plans to build upon in the coming years.

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“The seller had executed a number of extensive improvements to the exterior and common areas as well as about 25% of the interior units,” said Danny Orland, director of investments with Gelt. “Our business plan is to focus on completing an interior renovation of the remaining 75% of the units by installing vinyl flooring, stainless steel appliances, quartz countertops, new cabinet faces and hardware, tile backsplashes and ceiling fans. Ultimately, Gelt will provide residents with a well-managed, upgraded and attractive rental community that enhances their overall quality of life.”

Gelt is planning on investing $3.5 million in capital improvements over the next four years.

The 38-acre property comprises 51 two- and three-story buildings. The majority of the units at Kallisto at Bear Creek are one- and two-bedroom units with a mix of traditional flats and townhome floorplans.

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Units include private balconies or porches, wood and gas fireplaces, washers and dryers, walk-in closets and extra storage.

Community amenities at Kallisto at Bear Creek include a community garden, tennis court, two swimming pools, a hot tub, 31 acres of landscaped open spaces, barbecue areas, a clubhouse, business center, dog park and fitness center, for example.

JLL’s Jordan Robbins, David Martin and Pamela Koster represented Gelt, as well as the seller, Holland Partner Group, in the transaction.

Situated in the Bear Creek submarket of Lakewood, Kallisto at Bear Creek is close to a number of employment centers, as well as near retail destinations such as Belmar and Southwest Plaza. It was 95% occupied at the time of sale.

Gelt’s Kallisto buy was the result of an upleg in a 1031 exchange with the recent sale of three assets including the $62.5 million sale of Monterra Ridge Apartments in Los Angeles County; the $92 million sale of Westhills Apartment Homes, a 400-unit apartment property in Lakewood; and the $9.15 million sale of Y Rancho Mobile Home Park, a 113-space mobile home park in Reno, Nevada.

Currently, Gelt owns nearly 2,500 units in six communities in the Denver market.

Featured in CREJ’s February 5-18, 2020, issue

Jennifer Hayes has been an editor with the CREJ since 2000. Jennifer covers multifamily and retail news in the Denver metro area plus all property types in Colorado Springs and Southern Colorado. She also covers the finance market as well as solicits bylines articles and is editor of the Health Care Properties Quarterly. Before joining…