LOS ANGELES, CA – Starwood Capital Group, a global private investment firm focused on real estate and energy investments, announced that a controlled affiliate has formed a joint venture with Holland Partner Group to buy and develop a Class A multifamily project, 550 Harborfront, in San Pedro, CA, an emerging coastal neighborhood in the South Bay of Los Angeles. Starwood and Holland expect to complete the Opportunity Zone development in the Spring of 2020.

550 Harborfront will consist of 375 units in a seven-tale, podium-style community with 37 studios, 177 one-bedroom units, 139 two-bedroom units, 20 three-bedroom units and 2 four-bedroom units. Additionally, the property will offer residents top-of-the-market finishes and a comprehensive amenity package consistent with market standard Class A multifamily developments throughout Los Angeles. Tenant amenities will include a two-tale fitness center, resident lounges, a pool and a rooftop lounge with outdoor kitchens and barbecue stations, which are collectively expected to attract young professionals and families. Located at 550 South Palos Verdes Street, 550 Harborfront is well situated at the intersection of the waterfront and San Pedro’s commercial district, and within one mile of the 110 Freeway providing convenient access to Downtown Los Angeles and other major employment centers.

“We are excited by the opportunity to develop the first Class A multifamily property in San Pedro since 2008,” said David Baker, Senior Vice President at Starwood Capital. “550 Harborfront is well positioned to capture demand given its coastal location and accessibility, over $1 billion of ongoing investment into the adjacent waterfront and ports, and relative affordability in the context of persistent housing shortages and rising rents in LA’s core infill neighborhoods.”  

“The Los Angeles multifamily market is among the strongest in the United States and San Pedro in particular stands to benefit from its favorable supply/demand fundamentals,” said Anthony Balestrieri, Senior Vice President and head of Starwood’s Opportunity Zone investment business. “San Pedro’s Opportunity Zone designation has accelerated investment into the neighborhood, which we expect to grow. As Starwood Capital grows its Opportunity Zone investment portfolio we will continue to identify attractive investment opportunities and make value for our investors.”

Starwood Capital announced the formation of its Opportunity Zone business on Jan. 30, 2019, to ensure the success of its ongoing investments in Opportunity Zones, which were made by the 2017 Tax Cuts and Jobs Act to offer investors certain tax advantages for developing and operating assets in designated Opportunity Zones. Starwood Capital will focus its Opportunity Zone strategy on markets in regions where the firm has developed a strong real estate presence, including the West Coast, Southeast and large metropolitan markets such as New York City and Washington, D.C. Starwood Capital is well positioned in many of these markets and will continue to actively invest in, reposition and develop real estate assets in these communities.

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DENVER, CO – Gelt Inc., a Los Angeles-based real estate investment and asset management firm, announced it has bought Cedar Run Apartments for $62 million. The 384-unit apartment community is situated on 14 acres at 888 South Oneida Street in Denver.

Built in 1970 and partially renovated between 2012 and 2017, the property includes nine residential buildings with 240 one-bedroom units and 144 two-bedroom units with an average size of 846 square feet. It also features one 27,000-square-foot clubhouse building with two racquetball courts, indoor pool, fitness center and conference room spaces. Other on-site amenities include two outdoor pools, three courtyards with picnic and BBQ areas, playground, a sand volleyball court and covered parking.

“Cedar Run was an investment opportunity we quickly identified as one we wanted to add to our growing apartment portfolio as it checked all the boxes of our investment criteria.  Namely, this is a well-located, infill workforce housing asset in Denver with value-add upside via interior renovation and amenity addition,” said Keith Wasserman, partner with Gelt.

Jeff Harris, COO with Gelt added, “Gelt plans to improve the asset through a strategic renovation program to meet the growing demands of renters. This plot will include renovating unit interiors by installing vinyl plank flooring throughout, adding new cabinet faces, hardware, lighting fixtures, as well as resurfacing the countertops.  Common area improvements in our enhancement strategy include renovating the leasing office, business center, and gym, and adding a dog park, package locker room, and upgraded BBQ area.”

Josh Satin, Gelt’s director of acquisitions noted, “With the buy of Cedar Run, Gelt now owns 1,900 units in Denver. Our goal is to add another 2,000 units to our portfolio here over the next two years. The metro Denver area is projected to continue to grow in population and jobs over the coming years, making this region a solid, long-term investment for apartment assets.”

Cedar Run is in the center of a number of major employment hubs including: The DTC Business Corridor (175,000 employees) Downtown Denver, (133,500 jobs) the Fitzsimons Life Science District, (45,000 employees) and Cherry Creek (20,000 employees). It is also just two miles from the 500,000-square-foot Gardens on Havana Shopping Center which includes Target, Sprouts Farmers Market, Starbucks, and Kohl’s among others.

Newmark Knight Frank Vice Chairmen Terrance Hunt and Shane Ozment represented the seller, Maxx Properties in the transaction. Newmark Knight Frank Executive Managing Director Mitch Clarfield and Director Ryan Greer provided the 10-year, full-term interest-only debt at 70 percent LTV and a 4.2 percent rate through Freddie Mac’s Green-Up program.

“Over the course of their ownership, Maxx Properties place significant effort into capital improvements and keeping the building systems in fantastic condition,” stated Hunt, “The property’s location and style, with underutilized clubhouse space, provide Gelt the opportunity to take the asset to the next level with their scheduled improvements.”

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LARGO, FL – National residential real estate investment and management company Balfour Beatty Communities, recently completed the acquisition of Waterchase Apartments in partnership with ApexOne Investment Partners. The 278-unit apartment community located in Largo, FL boosts Balfour Beatty’s Florida portfolio to more than 3,500 residential units state-wide.

Constructed in the 1980s, Waterchase is situated on 18 acres and offers studio, 1- and 2-bedroom apartment homes and a variety of amenities including three pools, a dog park, fitness center and newly renovated clubhouse. The community’s ideal Largo location offers close proximity to the area’s award-winning beaches, as well as the area’s prominent employers including the St. Pete-Clearwater International Airport, Bank of America and Largo Medical Center.

“Waterchase is an exciting addition to our Florida multifamily portfolio,” said Michael Price, senior vice president of residential transactions for Balfour Beatty Communities. “The Largo/Tampa area features many desirable rental demographics, including a thriving job market, and this property is ideally suited to our multifamily strategy targeted at investing in renovation and improved property management to increase value.”

Balfour Beatty Communities will deliver both property management and asset management services for the property.

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