Location: Tempe, AZ
Property Type: Multifamily
Number of Units: 306
Acquisition Date: November 15th, 2012
Status: Sold by Gelt on November 28th, 2017
On November 15, 2012, Gelt Baseline Holdings, LLC along with Goldrich + Kest, acquired the 306-unit apartment known as Mission Springs for $23,000,000. This equated to a basis of $75,000 per unit and $106.38 per square foot. On November 28, 2017, the property was sold for $33,800,000, or $110,450 per unit and $156.34 per square foot. For investors originally in Gelt Baseline Holdings, LLC, this equates to a cumulative return of 84% or an average annual return of 17% (non-compounded) over the 5-year hold period.
Mission Springs is an upgraded 306-unit community constructed in 1987 located in Tempe, Arizona. The community consists of 24 two-story residential buildings with a unit mix of 152 one bedroom/one bath and 154 two bedroom/two bath. Interior amenities feature vaulted ceilings, washers and dryers, gourmet kitchens with faux granite countertops, breakfast bars, frost-free refrigerators, self-cleaning ovens, pantries, brushed nickel hardware, mirrored closet doors, and private patios/balconies. Residents at Missions Springs enjoy a full community amenity package including gated access, three swimming pools and spas, business center with WiFi, beautifully landscaped courtyards, picnic areas with barbecue grills and soothing water features. Gelt was able to see that this well amenitized property along with its strong infill location and outstanding visibility along Baseline Road would yield superior returns without the need for extensive renovations. This proved highly successfully with an increase in sales price over our purchase price by nearly 50%.
Mission Springs was another lucrative multifamily investment, and we are thrilled to announce another success story for our loyal investors.