Thursday, September 24, 2020

HFO Brokers Rare 100% Value-Add Opportunity to National Investment Group

HFO Investment Real Estate (HFO) has sold the 164-unit Silverwood Apartments in Gresham, Oregon, for $30 million.  The asset was acquired by Gelt, Inc., a Los Angeles-based real estate investment and asset management firm. The 164-unit property is located at 4777 SW 11th St, in Gresham. 

“This property represents a rare one-hundred percent value-add opportunity in the highly desirable Gresham market,” said HFO partner Tyler Johnson. 

According to Gelt partner Jeff Harris, “Acquiring Silverwood Apartments during the COVID-19 crisis required us to be much more conservative with our projections for this asset. 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.”

About Gelt, Inc.
Gelt Inc. is a regional real estate investment and asset management company that seeks to acquire properties in strategic markets in the Western U.S. Since the company's inception in 2008, Gelt has acquired more than 10,300 apartment units, RV and mobile home sites, self-storage units, and apartment units in development, valued in excess of $1.56 billion. The firm’s philosophy is to be a prudent steward of investment capital, to invest wisely and confidently in emerging, constrained markets. Gelt seeks appropriate risk-adjusted returns while achieving income from current cash flow and appreciation through superior performance of its assets.


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