Investment firm Gelt is finally getting serious about its hometown.
The Los Angeles-based real estate company acquired the land to develop a 254-unit apartment project in Reseda, The Real Deal has learned, shortly after it acquired an existing residential complex in Santa Clarita.
The Reseda apartments, planned for a lot at 6625 Reseda Boulevard, will be Gelt’s first ground-up development in L.A., the firm’s partner Steve Wasserman told TRD.
Gelt acquired the site from seller Metric Holdings for an undisclosed figure. The building plans were part of the transaction, Wasserman said, and have already been entitled. The 2.4-acre lot is empty at the moment. It last changed hands for $5.3 million in 2014.
Dubbed the Watermark, the five-story complex will have 15 studio apartments, 112 one-bedroom units, 114 two-bedroom units and 13 three-bedroom units. Rents will range from $1,300 to $3,500 per month, Wasserman said. Amenities will include a gym, clubhouse, swimming pool and spa.
Construction is slated to begin early 2017.
Gelt was interested in the land because it is close to the Warner Center area, as well as Pierce College and California State University, Northridge. The bulk of Gelt’s real estate holdings are in Utah and Arizona, but the company is now looking to locally because of L.A.’s housing shortage.
“We’re all about cash returns, value added,” Wasserman said. “And there’s a huge shortage of affordable housing in this market right now.” He added that Gelt is considering several other properties in L.A. County.
It recently acquired a massive 16-building community at 28085 Whites Canyon Road in Santa Clarita for $45.5 million.