Gelt, Inc. Acquires 149-Apartment Building in Studio City, Calif., for $76 Million

Gelt Inc. has acquired Avalon Studio 4121, a 149-unit value-added apartment building in Studio City, CA

Gelt Inc., a Los Angeles-based real estate investment and asset management firm, is pleased to announce that it has acquired Avalon Studio 4121, a 149-unit value-added apartment building located at 4041- 4121 Radford Avenue in Studio City, CA. Gelt purchased the Class A asset for $76 million from Avalon Bay.

“This core-plus asset is just one of three apartment buildings in Studio City with over 100 units built in the last 15 years, making it a very rare investment opportunity in this sub- market that presents very high barriers to entry for new developments,” said Keith Wasserman, Partner at Gelt. “We also liked its prime location in Los Angeles, which attracts young professionals looking to access nearby retail and restaurants, public transportation, freeways, and proximity to the thriving job base in and around the submarket.”

Built in 2009, the four-story, two-building property sits on 1.26 acres and was approximately 98% occupancy at escrow closing. The property offers one- and two-bedroom units averaging 808 square feet that include nine-foot ceilings, in-unit washers/dryers, and private decks and patios in some units. On-site facilities include a fitness center, games/hobby room, lounge area with TV, lessons, and rental desk.

“With unit interiors in their original condition, Gelt is planning a capital improvement program by investing approximately $5 million in renovating all unit interiors and upgrading amenities in common areas,” said Jeff Harris, partner of Gelt.

Harris noted that Gelt also plans to rename the property and expects the entire renovation program to be completed in about three years.

The company’s plans for the unit’s interior upgrades include the installation of stainless steel appliances, quartz counter tops with undermount sinks, vinyl plank flooring, tile backsplashes, cabinets, upgraded hardware and recessed lighting and fixtures. Gelt will also make selective upgrades to common area amenities which are currently in good condition.

“We have strategically targeted properties in Southern California over the past 18 months and seek to continue this trend due to compelling risk-adjusted returns,” said Josh Satin, chief investment officer of Gelt. “Avalon Studio 4121 is a Class A asset in a ‘prime and prime’ location that aligns with our investment thesis of acquiring quality real estate in Southern California.”

The property offers immediate access to the 101 and 170 freeways, allowing convenient access to nearby employment hubs in Universal City, Burbank, Century City, Glendale, Hollywood and Downtown LA.