Marking the firm’s foray into New Mexico, Gelt Inc., a Los Angeles-based real estate investment and asset management firm, has acquired Mountain Run Apartments, a 472-unit community in Albuquerque. The seller was Chartwell Capital Partners.
“With this acquisition, Gelt has acquired more than 6,000 units valued at $940 million and we are pleased to have entered a new market with this buy. We now have a portfolio that spans eight Western states,” said Keith Wasserman, partner with Gelt. “Albuquerque has shown consistent multifamily fundamentals for many years, mainly due to a lack of new supply. While other major cities saw significant rent declines in the last recession, Albuquerque remained stable, and we like that story.”
Jeff Harris, COO with Gelt, added: “We are seeking cash-flowing, stable investments for the long term, and the supply-constrained Albuquerque multifamily market is conducive to that strategy. Our goal is to own and operate at least 1,000 units here over the next 18 months.”
Built in 1985, the community offers a tranquil, park-like setting on nearly 16 acres of land and is located at 5800 Eubank Blvd. NE. It includes 312 one-bedroom units and 160 two-bedroom units within 35 two- and three-story buildings. In 2012 a major renovation occurred and included unit enhancements such as the addition of stainless steel appliances, granite countertops in some units, custom maple cabinetry, washer/dryers in every unit, upgraded lighting, and faux wood flooring in kitchens and dining areas. On-site amenities include a heated swimming pool, business center, indoor spa, fitness center, basketball courts, movie theater, and resident lounge.
In order to further enhance the value and appeal of the property, Gelt will renovate the leasing office, clubhouse, and fitness center, as well as conduct upgrades to the sports court, and add barbecue/gazebo areas and a bike room.
Mountain Run is located in the highly coveted Far Northeast Heights market of Albuquerque. The region boasts a highly-rated school district and proximity to major employment corridors. Additionally, the area is extremely supply constrained which is driving tremendous multifamily fundamentals. The asset is immediately adjacent to Mountain Run Shopping Center, which has a Smith’s Grocery Store, a Walgreens, Wells Fargo banking center, and a U.S. Postal Service branch, amongst others. The community is also located across the street from Academy Hills Park, which is a recently renovated 13.4-acre park adding a convenient amenity for Mountain Run’s residents.
David Eagle, Billy Eagle and Ryan Mills of CBRE represented both the buyer and the seller in the transaction. Brian Eisendrath, Brandon Smith and Cameron Chalfant of CBRE represented Gelt in originating the financing.