WOODBRIDGE, Virginia (AUGUST 20, 2019) – Castle Lanterra Properties (CLP), announced the sale of Misty Ridge, a 409-unit apartment community located on a sprawling 26-acre park-like parcel of land located in Woodbridge, Virginia. CLP sold the property for $80,500,000 after having acquired it in April 2013 for $61,500,000 and amortizing over $5,000,000 in mortgage principal during its ownership period.
Upon acquisition, CLP embarked on a comprehensive capital improvement plan to address all deferred maintenance and make selective improvements throughout the property with the goal of solidifying its market positioning as the area’s leading Class-B rental community. The improvements campaign included new siding, HVAC replacements and new staircases, as well as various amenity enhancements catering to young families — the property’s predominant resident demographic. CLP also undertook renovations to 143 units during its ownership period, which has resulted in meaningful rent premiums while also providing proof of concept and substantial upside potential for the new owner.
The property offers large units, open floorplans, and family friendly amenities, differentiating itself from many of the high-density residential construction projects that were built in recent years.
Since CLP acquired Misty Ridge six years ago, Prince William County has distinguished itself as a premier business destination and taken on a new role as a thriving science and technology hub. As Virginia’s second largest county, Prince William has grown consistently and continues to diversify, significantly outpacing Washington DC in job growth from 2010-2016 and boasting a median income of nearly $100,000 and an unemployment rate of just 2.7% as of February 2019.
“With its favorable economic climate, Prince William County went through a massive influx of new unit deliveries aimed at the top end of the rental market. We, on the other hand, preferred to maintain our positioning as the value option in the submarket while still offering Class-A like amenities and unit finishes at affordable price points. By maintaining a wide pricing delta between our property and the newer product, we were able maintain consistently high occupancy rates and steadily increase rents throughout our ownership period. Ultimately, this led to a very favorable valuation at exit,” said CEO of CLP, Elie Rieder.
Residents of Misty Ridge are drawn to its close proximity to numerous mass transit options, providing easy access to Washington, D.C., as well as abundant lifestyle amenities such as upscale shopping, dining, and entertainment. The community offers large units, open floorplans, and family-friendly amenities across a sprawling 26-acre, park-like property – differentiating itself from many of the high-density residential construction projects that were built in recent years.
About Castle Lanterra Properties
Formed in 2009, Castle Lanterra Properties is a privately held real estate investment company focused on the acquisition and management of quality income producing multifamily properties within strategic growth markets throughout the United States. Through a rigorous value-enhancement program that includes thoughtful renovations, operational improvements and ancillary income development, CLP aims to reposition each asset with the goal of maximizing NOI, elevating its competitive position within the market, and providing attractive risk-adjusted returns for its investment partners. Castle Lanterra Properties currently own and manage 7,000 units across 22 properties throughout the United States.Back To Press Releases