Gelt, Inc. Acquires Kallisto at Bear Creek, a 472-Unit Apartment Property in Lakewood, CO, for $145.5 Million

Lakewood, Colorado

Investment and asset management firm now holds a Denver-area portfolio of approximately 2,500 units, continues to seek more assets in the local market Los Angeles, California, January 15, 2020 – Gelt, Inc., a Los Angeles-based real estate investment and asset management firm, is pleased to announce it has significantly expanded its Denver region apartment portfolio with the $145.5 million acquisition of Kallisto at Bear Creek. Located at 2605 S. Miller Drive in the Bear Creek area of Lakewood, CO, one of Denver’s most sought-after western suburbs, the asset includes 472 units. With this latest acquisition, Gelt now owns nearly 2,500 units in six communities in the Denver metro area.

“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 percent, 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 value-add upside in this region.”

Built in two phases in 1987 and 1996, Kallisto at Bear Creek is situated on just over 38 acres and includes 51 two- and three-story buildings. The majority of the units consist of one- and two-bedrooms with a mix of traditional flats and town-home floor-plans. The property offers a number of on-site amenities including a community garden, tennis court, two swimming pools, hot tub, 31 acres of landscaped open spaces, BBQ areas, clubhouse, business center, dog park and fitness center, among others. The units feature private balconies or porches, wood and gas fireplaces, washer/dryer, walk-in closets, and extra storage. Gelt is planning on investing $3.5 million in capital improvements over the next four years.

“The seller had executed a number of extensive improvements to the exterior and common areas as well as about 25 percent 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 percent of the units by installing vinyl flooring, stainless steel appliances, quartz counter tops, new cabinet faces and hardware, tile back-splash, and ceiling fans. Ultimately, Gelt will provide residents with a well-managed, upgraded, and attractive rental community that enhances their overall quality of life.”

Kallisto at Bear Creek is located in the heart of the highly affluent Bear Creek section of Lakewood, CO. The combination of the area’s suburban setting, proximity to outdoor recreation, and excellent schools are all key factors for renter desirability and demand. Additionally, the asset is located within a convenient commute to many of Denver’s largest employment centers, including the Denver Federal Center, St. Anthony Hospital, and Lockheed Martin. Additionally, it is a 20-minute drive to a diverse employee base of 400,000. The asset is well-located near several prime retail destinations, including Belmar and Southwest Plaza Mall, and within a three-mile radius of the asset, there are more than 3.4 million square feet of retail, dining and entertainment amenities.

Gelt’s Kallisto buy was the result of an up leg 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, NV. JLL’s Jordan Robbins, David Martin and Pamela Koster represented Gelt, as well as the seller, Holland Partner Group, in the transaction.

About Gelt, Inc. Gelt Inc. is a regional real estate investment and asset management company that seeks to acquire properties in strategic markets in the Western U.S. Since the company's inception in 2008, Gelt has acquired more than 10,300 apartment units, RV and mobile home sites, self-storage units and apartment units in development valued in excess of $1.56 billion. The firm’s philosophy is to be a prudent steward for its investment capital, to invest wisely, with confidence and intelligence in emerging, constrained markets. Gelt seeks appropriate risk adjusted returns while achieving income from current cash flow and appreciation through superior performance of its assets.

Gelt consists of a team of real estate professionals that possess a wealth of knowledge and expertise in law, real estate, finance, property and asset management, and construction.

Gelt’s affiliated companies include and Gelt Venture Capital. Gelt developed, the first financing-as-a-service resident portal for the $540 billion rental payment industry. Domuso offers online certified and financing options for move-in payments, one-time rent payments, debt payments, refunds, and late payments. The company developed its own proprietary risk scoring model to offer point-of-sale financing utilizing rental application data, property operational data, and historical payment history. Gelt Venture Capital is a seed-stage venture capital firm investing in companies capable of making a large global impact. We believe automation, mobility, robotics, artificial intelligence, and space tech form the fundamental technology layer are transforming our world and we focus on applications of these foundational technologies.

In 2017, Keith Wasserman and Damian Langere, co-founders of the Gelt companies, established the Resident Relief Foundation, a 501(c)(3) public nonprofit whose mission is to provide temporary rental assistance grants to responsible renters going through an unexpected financial crisis that was outside the residents’ control. Examples include medical emergencies, natural disasters, job gaps, auto accidents, and government subsidy discrepancies. These residents prove they can recover with a little help, have paid rent on time and are otherwise good residents wishing to stay in their apartments. They must complete an online financial education program as a condition of the grant. The grant is paid directly to the property on their behalf. RRF has helped a significant number of individuals and families recover and avoid homelessness.

The firm strives to stay on top of industry trends and is always on the lookout for new technologies that simplify life for its leasing agents and help its properties run smoothly.

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