CASTLE LANTERRA PROPERTIES ACQUIRES 452-UNIT TEXAS APARTMENT COMMUNITY
Enters the Austin Marketplace with Purchase of Stonegate Apartments
AUSTIN, Tex., March 30, 2015 – Castle Lanterra Properties (CLP), which actively seeks value-add multi-family opportunities nationwide, has entered the Austin, Texas, market. The company acquired Stonegate Apartments, a 452-unit class A property just 15 minutes from the state capital’s downtown. The property was purchased from an institutional ownership group.
“Stonegate is a beautiful, well-located property near major employers in a city that continues to attract corporate relocations and job growth,” said Elie Rieder, founder of the New York-based CLP. “We believe there is unrealized potential at this 56-acre property, and we see opportunity to take it to the next level.”
“We were attracted by Stonegate’s large amenity space and the opportunity to give the clubhouse a facelift and double the size of the fitness center,” said Rieder, noting that over $1 million has been earmarked for deferred maintenance and common area renovations. “At the same time, the previous owner had completed upgrades of over 200 units, and we will be completing that process with upgrades to many of the remaining units.”
Constructed in 2003 and located just off I-35, Stonegate consists of 24 two- and three-story buildings with spacious units in a variety of modern floor plans, many with vaulted 13-foot ceilings and balconies or patios. Attached garages and carports provide covered parking for over half of the units. Residents enjoy access to an expansive clubhouse that includes the leasing office, business center, fitness center and recreation room. The property also features two large swimming pools and barbeque grilling stations.
The unit upgrades will include everything from new lighting and plumbing fixtures to new stainless steel appliances and wood vinyl plank flooring. “We plan to modernize the units as well as all of the community amenities, bringing them up to current Class A standards,” said Austin Alexander, Managing Director for CLP. “We will also be improving the energy efficiency of the property with LED lighting throughout, and we are planning to add some new features to the property such as a dog park and private yards for select ground-floor units, which are desirable amenities in this pet-friendly city.”
“When Stonegate was constructed, it was at the top of the market in terms of quality,” said Rieder. “Our renovation program will bring the property up to a level that’s equal to or superior to the newest assets in the market – our goal is to make this the premier property in its location.”
“With strong population and rent growth in the Austin market, we can achieve good returns on an as-is basis,” he said. “When the upgrades are completed, we are confident that this property will continue to compete well and outperform the overall market.”
Castle Lanterra Properties specializes in identifying investment opportunities in multi-family properties. Founded and operated by Elie Rieder, the firm acquires, improves, repositions and manages a portfolio of properties across the Northeast, Mid-Atlantic and Southern U.S., with a proven track record of creating above-market returns for investors. In the past 12 months, Castle Lanterra Properties has acquired $290 million of assets including over 1,900 residential units.