Phoenix – Gelt Bethany Holdings LLC, a company formed by Gelt Inc. in Tarazana, Calif. (Adrian Goldstein, Steve Wasserman, Keith Wasserman, Evan Rock, Damian Langere, principals), paid $9.05 million ($60,333 per unit) to buy the 150-unit Broadstone on 12th, a 150-unit apartment complex at 1212 E. Bethany Home Road in Phoenix. The seller was Broadstone Posada Del Este LLC in Boston, Mass. That joint venture was comprised of AEW Capital Management in Boston and Alliance Residential Co. in Phoenix (Bruce Ward, Bob Hutt, Jay Hiemenz, et al., principals). The sale was brokered by Tyler Anderson, Sean Cunningham and Asher Gunter of CBRE in Phoenix. Broadstone on 12th, which was built in two phases in 1971 and 1985, is expected to be renamed.
The Gelt entity acquired Broadstone on 12th with a $6.9 million Freddie Mac loan issued by CBRE Capital Markets Inc. The AEW/Alliance Residential venture renamed the Bethany Home Road community after buying the property in a portfolio deal at year-end 2006. As reported by BREW, the AEW/Alliance Residential venture paid $11.661 million ($77,740 per unit) to acquire Broadstone on 12th (at that time called Posada del Este) in a four-property, 974-unit portfolio deal totaling just under $103.1 million.
Sources say Gelt intends to spend about $1 million to refurbish the rental property. With the acquisition of the Bethany Home Road complex, companies formed by Gelt have now invested $36.587 million in buying 834 apartment units in three Valley properties. Goldstein says the privately-held firm wants to own 2,000 to 3,000 units in the Phoenix area.
In April, BREW reported a company formed by Gelt paying $11.287+ million ($41,961 per unit) to purchase the 269-unit Waterstone apartments at 1651 S. Dobson Road in Mesa. The Tarzana-based company made its first deal in the Valley in May 2011, when it acquired the 415-unit Colonnade Gardens apartments at 1930 E. Camelback Road. That $16.25 million investment included the $9.3 million purchase ($42,466 per unit) of the 219-unit Ferntree apartments located at 5023 N. 18th Street and the $6.95 million acquisition ($35,459 per unit) of the 196-unit Colonnade Gardens apartments at 5023 N. 18th Street. Those two complexes were combined and are operated as a single asset. Broadstone on 12th is the second multi-family project that has been sold this month by the AEW/Alliance Residential venture.
Two weeks ago, BREW reported a company formed by Waterton & Associates in Chicago, Ill. (David Schwartz, pres.) paying $48.25 million ($93,930 per unit) acquire the 514-unit Broadstone Desert Horizon apartments. Alliance Residential, which had been managing Broadstone Desert Horizon and Broadstone on 12th, uses the Broadstone name in many of its apartment assets.
Goldstein is the contact for Gelt . . . reach him at (818) 676-9362. Bill Peterson is the contact at AEW . . . talk to him at (213) 312-2600. The principals at Alliance Residential are at (602) 778-2800. Call the CBRE agents at (602) 735-5555.
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