Tarzana-based real estate firm Gelt Inc. has acquired Avalon Studio 4121 — a 149-unit value-add apartment property in Studio City — for $76 million.
Avalon Bay sold the property, which is located at 4041-4121 Radford Ave.
“This core-plus asset is only one of three apartment properties in Studio City with more than 100 units built in the past 15 years, making it a very rare investment opportunity in this submarket which has very high barriers to entry for new development,” Keith Wasserman, a partner at Gelt, said in a statement. “We also liked its prime Los Angeles location, which attracts young professionals seeking access to nearby retail and dining amenities, public transportation, freeways, and proximity to the thriving employment base within and around the submarket.”
Built in 2009, the four-story, two-building property is situated on 1.26 acres and was approximately 98% occupied at the close of escrow. The property offers one- and two-bedroom units with an average size of 808 square feet that include nine-foot ceilings, in-unit washer/dryers, and private sundecks and patios in select units. On-site amenities include a fitness center, game/recreation room, lounge area with TV, courtyards and a leasing office.
According to Jeff Harris, a partner with Gelt, the property will undergo a roughly $5 million capital improvement program that will focus on unit interiors and common area amenities. Harris also noted that Gelt will rename the property and anticipates that the entire renovation program will take about three years.
The firm’s plans for the unit interior upgrades include the installation of stainless-steel appliances, quartz countertops with undermount sinks, vinyl plank flooring, tile backsplashes, cabinets, modernized hardware and recessed lighting and fixtures. Gelt will also selectively make upgrades to the common area amenities which are currently in good condition.
“We have strategically targeted properties in Southern California over the past 18 months and look to continue that trend moving forward because of compelling risk-adjusted returns,” said Josh Satin, Gelt’s chief investment officer. “Avalon Studio 4121 is a Class A asset at a ‘main and main’ location that fits our investment thesis of acquiring quality Southern California real estate.”
The property also offers immediate access to the 101 and 170 Freeways, allowing for convenient access to nearby employment hubs of Universal City, Burbank, Century City, Glendale, Hollywood and downtown L.A.