Kallisto at BearCreek

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Gelt has closed its largest acquisition todate. The firm acquired Kallisto at Bear Creek, a 472-unitapartment property in Denver, for $145.5 million. With thisacquisition, Gelt now has a portfolio of more than 2,500 propertiesin the Denver metro.

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"We've always believed in buying large multifamily assets,"Jeff Harris, a partner at Gelt, tells GlobeSt.com."On larger communities, we find we can achieve economies of scaleon our expenses, and also build mass in MSAs that we believe in ata faster pace, which in turn leads to further economies of scale ona market-wide level.  We will continue to seek largemultifamily assets to add to our portfolio."

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Gelt has been an active player in the Denver market. Thisproperty gave them the opportunity to purchase a substantial numberof units in a highly desired suburb of Denver. "Kallisto at BearCreek is a well maintained asset with a tremendous amenity set andpark-like setting in the highly desirable Lakewood submarket ofDenver," says Harris. "While the previous ownership put substantialcapital into the asset, we see an opportunity for continued upsideremaining through renovation of the remaining un-renovatedinteriors."

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The acquisition was part of a complicated 1021 exchange, but wasan ideal fit for the firm's strategy in the market. "We had three1031 exchanges to place as a result of three dispositions lastyear, and we found Kallisto to be the perfect investment in regardsto a home for these trades," adds Harris. "The deal fits into ourinvestment strategy of buying large, well maintained multifamilyassets with continued upside remaining via renovations, located inthriving western MSAs, with strong multifamily investmentfundamentals.

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Gelt isn't planning on slowing down, although the market isgetting highly competitive. This recent acquisition wasparticularly competitive. "The environment was highly competitive,"says Harris. "We won due to our track record of closing largeinvestments and strong reputation in the marketplace." The firmplans on acquiring $300 million in multifamily assets in 2020,leveraging its reputation to win deals.

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Of course, Denver will continue to be a target market for Gelt,which likes the market characteristics. "Job growth, populationgrowth, wage growth, and rent share of wallet all trend the rightway in Denver, driving multifamily fundamentals and the continuedhealth of our investments there," says Harris. "Ourlong-term outlook remains bullish."

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.