Gelt Venture Partners, LLC (GVP) is pleased to announce it has acquired Rancho Hills Apartments for $53.5 million. The 148-unit apartment property is located at 856 Heatherwood Lane in Vista, California (north San Diego County).
“This was an ideal opportunity for Gelt to acquire a value-add asset within the thriving San Diego market,” said Keith Wasserman, a Partner with GVP. “Over recent quarters, the region has hovered around 95% apartment occupancy and rents continue to grow as new supply over the past 12 months has been just 1%, with much of the development focused in the downtown core.”
Built in 1986, the garden-style property consists of 10 two-story buildings and is situated on 7.33 acres. It includes a unit mix of 56 one-bedroom units and 92 two-bedroom units with floor plans ranging from 553 to 909 square feet. The recently upgraded units include washer/dryers, quartz countertops, stainless steel appliances, and private balconies/patios. The property features lush green belts, a new clubhouse and fitness center, pool and spa, and a gas barbeque area, and is adjacent to the 4.6-acre Shadowridge Park which includes basketball courts and children’s play areas. Rancho Hills Apartments is also located near Shadowridge Golf Club and provides quick access to the 78 Corridor.
The seller recently conducted an extensive capital improvement program for the unit interiors. To increase curb appeal, Gelt plans on enhancing the property’s exterior by painting the buildings and balconies with a contemporary color scheme, redoing all landscaping, and adding resort-style furniture in the pool area, among other improvements.
“With our thorough and well-planned capital improvement strategy, our team believes we will be successful in generating additional value for the property. This will allow the asset to compete with other nearby rental communities and help meet tenant demand for an attractive, amenity-rich residential community with modern, upgraded unit interiors,” said GVP Partner and Chief Investment Officer Josh Satin.
“Rancho Hills is GVP’s first asset within San Diego County and we are seeking additional assets here as it has long been a target market for our firm. We acquired Rancho Hills at an attractive cap rate which increased our potential upside for our investors,” added GVP Partner, Damian Langere. “We are looking forward to owning this quality asset and creating additional value over the near- and long-term.”
Rachel Parsons, Derrek Ostrzyzek and Mike Murphy represented both GVP and the undisclosed seller.
