Gelt Venture Partners, LLC is pleased to announce it has acquired Union Place for $63.15 million. The 125-unit apartment property is located at 1500 Cherry Street in Placentia, CA (north Orange County).
Built in 2012, the three-story property is situated on just over five acres and consists primarily of spacious two- and three-bedroom units averaging 1,238 square feet. The property features a pool, fitness center, barbecue areas, playground, and controlled entry access. Interior units have granite countertops, stainless steel appliances, wood-style flooring, laundry rooms with washer/dryers, 9-foot ceilings, walk-in closets, private balconies or patios, and garages for each unit as well as ample surface parking. The unit interiors are currently in original condition.
“GVP saw this asset as a prime opportunity to realize significant upside by implementing a renovation program targeting luxury upgrades to unit interiors as well as making strategic common area and amenity improvements,” said Keith Wasserman, a Partner with GVP.
“We are planning to invest approximately $3.25 million over the next two years to meet area renter demands for modern, luxury product that will set it apart from other rental communities in the submarket,” added GVP Partner, Damian Langere.
GVP plans to add kitchen islands, new custom cabinetry, vinyl plank flooring, tile backsplashes, quartz countertops, undermount sinks, modernized hardware, and recessed lighting. Planned common area improvements include painting and enhancements to the pool and fitness center, among other cosmetic improvements.
Union Place was originally designed as condominiums and is the only one of three buildings over 100 units that was built in the past 35 years in the City of Placentia. Additionally, it is one of only ten multifamily properties over 100 units that has been delivered since 2000 within a five-mile radius.
“With a historically high occupancy rate and a current vacancy of less than 4%, large unit sizes, and a dense infill location within a coveted school district, this asset is already a successful and distinguished community,” noted Josh Satin, GVP Parter. “Given those fundamentals combined with a limited new supply coming to the area, we are confident that once the renovation plan has been executed, Union Place will be well-positioned for sustained tenant demand and value appreciation.”
Union Place is proximate to the 55, 57 and 91 freeways and provides residents with access to employment corridors in Orange County, the Inland Empire, and the San Gabriel Valley. Placentia has an average annual household income of approximately $147,000 and has one of the highest rated school districts in California.
Mike Murphy and Rachel Parsons of Berkadia represented both sides of the transaction.
GVP is looking to raise $150 million for its new fund in order to capitalize on compelling opportunities in the market over the next three years resulting in some distress from short-term high leverage loans. Over the next 18 months, its goal is to acquire up to $400 million of real estate in targeted markets including the Southern California counties of Los Angeles, Orange County, and San Diego; Denver; Salt Lake City; Phoenix; and Portland.