Rancho Hills Apartments
Value-add garden-style multifamily asset in Phoenix's high-growth East Valley submarket.
Gelt Investor Relations Team
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Deal Overview
Rancho Hills Apartments is a 240-unit, garden-style multifamily asset constructed in 1998, situated in the high-growth East Valley submarket of Phoenix, Arizona. The property features spacious floor plans, resort-style amenities, and direct access to major employment hubs.
The acquisition represents an outstanding value-add opportunity. Approximately 40% of the units remain in their original vintage condition, providing a clear path to capture a proven $250/month rent premium through targeted interior renovations, including stainless steel appliances, quartz countertops, vinyl plank flooring, and modern lighting fixtures.
Additionally, the sponsor intends to execute light exterior upgrades to enhance curb appeal, cure minor deferred maintenance, and optimize property management practices to reduce operating expenses. Phoenix continues to rank as one of the nation's leading metropolitan areas for job growth, population influx, and long-term apartment demand.
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REI Platform Assessment
How we analyze and pre-screen this transaction.
Why This Deal
- High-Growth Phoenix East Valley Submarket: The submarket is characterized by high average household incomes ($98,000+) and has experienced 4.2% annualized rent growth over the past 5 years.
- Proven Value-Add Premium: Out of 240 units, 96 unrenovated homes present a straightforward upgrade path with an estimated ROI of 18% based on comparable nearby assets.
- Favorable Submarket Occupancy: Supported by structural supply-demand imbalances, local multifamily occupancy has historically averaged 94.5% over the past 12 years.
Deal Screening Checklist
Why This Sponsor
- Tenured Local Presence: Gelt Venture Partners has acquired and managed over 5,000 units in the Phoenix MSA since 2008, demonstrating deep market knowledge and relationships.
- Substantial Sponsor Co-Investment: The sponsor is contributing $1.5M (10% of total equity) to align interests directly with LP capital partners.
- Strong Realized Track Record: Across 38 realized projects, Gelt has generated an average net internal rate of return (IRR) of 18.4% and an average equity multiple of 1.75x.
Sponsor Screening Checklist
This offering aligns with the Value-Add strategy. Our rating framework analyzes sponsors on track record, leverage factors, and lease stability metrics.
No assumptions or risks have been published for this offering.
The Deal
No value propositions have been published for this offering.
The sponsor plans to execute a comprehensive, institutional-quality value-add program over a projected 5-year hold period.
Interior Unit Upgrades
We will renovate the remaining 96 classic units (40% of inventory) upon tenant turn. The renovation package includes:
- Premium quartz countertops in kitchen and bathrooms.
- Modern shaker-style cabinet faces with brushed nickel hardware.
- Energy Star stainless steel appliances.
- Luxury vinyl plank (LVP) flooring in common areas, with plush carpets in bedrooms.
- USB outlets, LED light fixtures, and smart thermostats.
Common Area & Amenity Enhancements
To support the premium positioning and command higher rents across all units, we will upgrade common amenities:
- Clubhouse Modernization: Revamping the leasing office, co-working space, and resident lounge.
- Fitness Center Upgrade: Expanding the gym and installing Peloton bikes and free-weights.
- Pool Area Activation: Adding premium cabanas, outdoor kitchen, and fire pits.
- Landscaping & Signage: Refreshing drought-tolerant landscaping and installing modern monument signage.
The Sponsor
Gelt Venture Partners is a leading real estate investment firm specializing in the acquisition and asset management of institutional multifamily assets. Since our inception, we have focused on high-growth submarkets throughout the Western US, delivering strong risk-adjusted returns to our investment partners.
Gelt Venture Partners has previously listed 15 offerings on various online platforms. All distributions have been paid in accordance with the operating agreements, and average realized IRR has met or exceeded target expectations.
- **Multifamily Housing News**: Gelt Venture Partners acquires 240-unit Phoenix complex for $40M.
- **Real Estate Weekly**: Sponsor expands value-add portfolio in Arizona East Valley.
**David Gelt** - Managing Partner. 20+ years of real estate underwriting experience. Formerly with Gold Capital.
**Mark Hills** - VP of Asset Management. Focuses on regional submarket executions and contractor auditing.
The Property
Rancho Hills is strategically positioned in Phoenix's East Valley, just minutes from the Loop 101 and US-60 corridors. This location provides convenient commutes to major employment centers including the Tempe Tech Corridor, Chandler Price Road Corridor, and downtown Phoenix. The surrounding 3-mile radius boasts: - Median household income exceeding $98,000. - Over 120,000 jobs within a 15-minute drive. - Top-rated public schools, retail centers, and recreational parks.
Comparable Sales Transactions
| Property Name | Built | Price Per Unit | Market Cap Rate |
|---|---|---|---|
| Villas at Sun Valley | 1996 | $172,000 | 5.10% |
| East Valley Heights | 2002 | $185,000 | 4.95% |
NRA: 248,000 SF. Consists of 14 separate residential structures and 1 clubhouse building. Constructed utilizing post-tension slab on grade, wood-frame framing, and tile roofing elements.
Legal Offerings Disclaimers
THIS OFFERING IS GATED AND RESTRICTED TO ACCREDITED INVESTORS ONLY. REAL ESTATE INVESTMENTS INVOLVE A HIGH DEGREE OF RISK AND ARE HIGHLY ILLIQUID. THERE CAN BE NO ASSURANCE THAT TARGETED RETURNS WILL BE MET OR THAT CASH DISTRIBUTIONS WILL BE PAID AS PLANNED. All prospective investors must review the full Offering Memorandum, Operating Agreement, and Subscription Documents prior to committing capital. The information provided herein is mock data generated for demonstrating the REI Buy Box matching application and does not constitute a real investment solicitation or financial advice.
Rancho Hills Apartments
Value-add garden-style multifamily asset in Phoenix's high-growth East Valley submarket.
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