AS SEEN IN NEW JERSEY BUSINESS MAGAZINE: “CASTLE LANTERRA PROPERTIES COMPLETES $147.5M ACQUISITION OF NEW JERSEY APARTMENT COMMUNITY”
Castle Lanterra Properties (CLP) completes the acquisition of Alexan CityView, a 544-unit apartment community situated on 7.4 acres along the waterfront in Bayonne. The sale price was $147.5 million. The seller was a joint venture between an investment fund and a large property manager. Jones Lang LaSalle arranged the transaction.
“This is a core-plus opportunity, a class A property that was constructed in 2010, currently with 91 percent occupancy,” said Elie Rieder, Owner of CLP. “It is a good opportunity on a price-per-unit, cap rate and yield basis.”
The property features an array of amenities, including a 9,000-square-foot clubhouse, fitness studio, indoor basketball half-court, children’s playroom, a resort-style saltwater pool, and a seven-story parking garage. The property also is LEED Silver certified.
“Although the property already offers an amenity package that is superior to what is available at other nearby properties, we plan additional upgrades to the amenities, including updates to the clubhouse and an expansion of the gym,” said Benjamin Loney, Head of Acquisitions.
The renamed Harbor Pointe is the initial development on the Peninsula at Bayonne Harbor, a 420-acre man-made peninsula, and offers water views and a panorama of Lower Manhattan.
“The peninsula is the only location along the Gold Coast that still has vacant land that is also master-planned, without the need to re-purpose any other land for construction,” said Loney. “The surrounding area features a number of opportunities for growth, and we are in discussions with landowners of neighboring parcels to either joint venture with them on putting together combined amenities when they start to build, or to purchase their land to expand what we are able to offer our residents.”
“The city is excited that a company with the stature of Castle Lanterra is willing to invest capital here,” said Bayonne City Administrator Joseph DeMarco. “Like the Mayor and City Council, Castle Lanterra, under the leadership of Elie Rieder, sees the potential for future growth.”
“Bayonne is on the upswing in terms of new development and attracting new residents and businesses, and we see this particular investment as an extremely positive indicator,” said DeMarco. “Investors and developers are willing to put their trust in the City of Bayonne, and Castle Lanterra is going to be an important part of that transformation.”
“The area is experiencing strong economic growth and will benefit from future development,” Rieder added.
Harbor Pointe is a half-mile from the PATH light rail, providing easy access to Manhattan. It is also 15 minutes from downtown Jersey City and five minutes from numerous retail centers. Castle Lanterra Properties specializes in identifying investment opportunities in multi-family properties.