Marking its first acquisition in Oregon, Gelt Inc., a Los Angeles-based real estate investment and asset management firm, has acquired Powell Valley Apartment Homes for $39.5 million. The 228-unit apartment community is located at 1500 SW Pleasant View Drive in Gresham, a suburb of Portland. The seller was Jackson Square Properties.
“Powell Valley Apartment Homes is an ideal asset to add to our expanding portfolio,” said Keith Wasserman, partner with Gelt. “We liked that this well-maintained garden-style asset is in Gresham, a strategically located Portland submarket with minimal multifamily product being developed over the past several years, and a very limited pipeline of future development. Subsequently, Gresham is experiencing some of the best rental apartment metrics in the nation as occupancy is hovering close to 100 percent.”
Wasserman added: “The Portland region’s job market has grown at a strong pace in recent years. This, coupled with significant in-migration into the area has led to an increasingly high demand for apartment units.”
Built in 1999 and situated on 9.23 acres, the property includes 18 residential buildings as well as a newly renovated clubhouse building with a leasing office, 24-hour fitness center, conference room and internet café. Other on-site amenities include a swimming pool, year-round covered spa, an outdoor playground, a dog run, and covered garages. The property includes 38 one-bedroom units, 186 two-bedroom units, and four three-bedroom units. Each unit has a full-size washer and dryer, large deck or private patio, and exterior storage closet.
The seller recently renovated approximately 92 unit interiors with modern upgrades. In order to tap into renter demand for high-end finishes, Gelt plans to immediately embark on adding value to the asset by renovating approximately 100 additional units with vinyl plank flooring, stainless steel appliances, new fixtures, window covering, and new cabinet faces.
“As a private equity firm focused on the multifamily sector, the strong fundamentals in the Portland market indicate to us that the area is primed for consistent, long-term growth and subsequently will provide strong returns for Gelt and our investors,” said Jeff Harris, director of acquisitions with Gelt. “We are thrilled to have acquired our first property in the Portland region, and we are looking to continue purchasing well located multifamily assets in this market.”