The Denver office of CBRE today announced its Capital Markets’ Debt & Structured Finance Services has secured $55.6 million in financing on behalf of Gelt, Inc. for the acquisition of Tamarac Village Apartments in Denver, Colorado.
The apartment community sold for $74 million and is home to 564 apartment units.
Brian Eisendrath and Ross Moore with CBRE’s Beverly Hills office arranged a 10-year fixed-rate loan with a five-year interest-only component at approximately 75 percent. Gelt will continue a renovation program and perform additional capital improvements on the interior units and common areas.
“Given Gelt’s long-term strategy in secondary growth markets, 10-year debt with maximum interest only will allow them to execute on their business plan by providing solid cash-on-cash returns to their investors,” said Mr. Eisendrath. “Given the volatility in the capital markets, we were able to navigate the new mandates and provide the best terms possible.”
“Brian and his team secured a loan that allows us to continue repositioning this well-built asset while providing an attractive value alternative for renters who are priced out of the newer Denver product,” said Keith Wasserman, Co-founder of Gelt, Inc. “They were able to move fast, providing lender commitment prior to going hard on the purchase all the while securing aggressive long-term financing with seamless execution.”
Built in 1977, Tamarac Village consists of 564 units with a mix of studio, one- and two-bedroom units ranging from 450 to 1,015 square feet. The property is located near the intersection of I-25 and I-225 in Southeast Denver, in proximity to the Denver Tech Center.
The acquisition is the first for the Los Angeles-based investor in Denver. In addition to this property, Mr. Eisendrath and his team helped secure financing for Gelt in three acquisitions in Salt Lake City over the past year comprising 875 units and $71.5 million in loan proceeds.