Los Angeles, Calif. – Gelt, Inc., a Los Angeles-based real estate investment and asset management firm, is pleased to announce it has acquired Silverwood Apartments for $30 million. The 164-unit property is located at 4777 SW 11th St., in Gresham, OR.
“Acquiring Silverwood Apartments during the COVID-19 crisis required us to be much more conservative with our projections for this asset,” said Jeff Harris, Partner with Gelt. “However, as a function of the good basis we bought the property for, a strategic business plan to capture significant value-add upside, and a desirable interest rate, we were able to forecast overall returns that met our desired yield requirements.”
Built in 1991, the garden-style community is situated on just under nine acres and includes 32 buildings. It is comprised of 159 two-bedroom units, three one-bedroom units, and two three-bedroom units. The property features a pool, playground, walking/biking trails, and a picnic area.
Over the next few years, Gelt plans on making upgrades to the unit interiors to include new vinyl plank flooring, stainless steel appliances, new cabinet faces, backsplash, ceiling fans, and other cosmetic improvements. The firm will also rebrand the asset, create new signage, paint the exterior of the building, and refresh the pool and playground areas.
This buy marks Gelt’s second apartment community in Gresham. The company also owns Powell Valley Apartment Homes, a 228-unit property which was acquired approximately four years ago.
“We are cautiously navigating this new economic environment, but we continue to have confidence in favorable multifamily fundamentals over the long term in markets with job and population growth,” said Josh Satin, Director of Acquisitions with Gelt. “Over the next 12 months we are looking to acquire $250 million in assets.”
Tyler Johnson, Rob Marton, and Greg Frick of HFO represented Gelt, as well as the seller, a private individual who owned the property for more than 25 years.
“This property represents a rare 100 percent, value-add opportunity in the highly desirable Gresham market,” said HFO Partner Tyler Johnson.
Bordering the eastern edge of the City of Portland, Gresham is Oregon’s fourth-largest city and has a growing population of more than 110,500). The greater Portland area has an abundant, well-educated and skilled workforce, affordable high quality of life, and a low cost of doing business compared to the Bay Area. It is home to the headquarters of Fortune 500 companies Nike and Lithia Motors. Fortune 1000 companies headquartered here include Columbia Sportswear, Greenbrier Cos. and Portland General Electric.
