Castle Lanterra Sets Foot in Austin
New York-based company Castle Lanterra Properties has extended its reach all the way to the Lone Star state.
The company has bought Stonegate Apartments, a 452-unit class A property, just 15 minutes from the state’s capital downtown.
Institutional investor Capri Capital sold the property for an undisclosed amount, according to a CLP spokesperson.
“[Capri Capital] had done an excellent job maintaining the property and had begun a unit upgrade program, but they had reached the end of their planned hold period, providing us with an opportunity to build on what they had started and take the property to the next level,” Elie Rieder, founder of the New York-based CLP, told Commercial Property Executive.
Built in 2003, just off I-35, the property is made up of 24 two- and three-story buildings with spacious units and modern floor plans. The property features a clubhouse, fitness center and recreation room, along with two sizable swimming pools.
“Stonegate has many unique features that make it attractive, from its 56-acre site adjacent to a green belt that provides residents with a park-like feel and wooded views, to uncommon unit amenities such as attached garages and superior shared amenities,” Rieder added. “When it was constructed, it was at the top of the market in terms of quality, and we plan to modernize the existing amenities, expand the fitness center, and upgrade the units to bring the property up to a level that will equal or surpass that offered by even brand-new assets in this submarket.”
CLP is setting aside $1 million for maintenance and common-area renovations. Unit upgrades will include from new lighting and plumbing fixtures to new appliances and wood vinyl plank flooring.
According to a 2015 Outlook Apartment Research Report by Marcus & Millichap, Austin’s apartment market continues to be strong in 2015 thanks to above-average job growth, in-migration and household formation.
“Austin has been one of the highest-growth markets in the U.S. in recent years, with strong job growth driven by the business-friendly economic environment, well-educated workforce and desirable quality of life,” Rieder concluded. ” We expect this growth to continue, supporting robust demand for rental housing in this market.”