Tarzana-based real estate firm Gelt Inc. has acquired Avalon Studio 4121 — a 149-unit value-added apartment building in Studio City — for $76 million.
Avalon Bay has sold the property, which is located at 4041-4121 Radford Ave.
“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 which presents very high barriers to entry for new developments,” Keith Wasserman, partner at Gelt, said in a statement. “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 with an average size of 808 square feet including nine foot ceilings, in-washer/dryer and private terraces and patios in some units. On-site facilities include a fitness center, games/hobby room, lounge area with TV, lessons, and rental desk.
According to Jeff Harris, a Gelt partner, the property will undergo an approximately $5 million capital improvement program that will focus on unit interiors and common area amenities. Harris also noted that Gelt will be renaming the property and expects the entire renovation program to take around three years.
The company’s plans for interior unit upgrades include the installation of stainless steel appliances, quartz countertops with undermount sinks, vinyl plank flooring, tile backsplashes, cabinetry, 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 also 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 Los Angeles.