CASTLE LANTERRA PROPERTIES ADDS 220-UNIT APARTMENT COMMUNITY TO ATLANTA PORTFOLIO

COBB COUNTY, Ga. (Sept. 5, 2019) – Castle Lanterra Properties (CLP), a New York-based national real estate investment firm, has announced the off-market acquisition of a 220-unit apartment community located at 300 Riverside Parkway in Austell, Georgia. Coming on the heels of CLP’s acquisition of a neighboring apartment community earlier this year, this transaction expands the firm’s local multifamily portfolio to more than 1,100 units, further demonstrating CLP’s confidence in the economic vitality of the Atlanta market.

Constructed in 1987 and renovated in 2017, the property features a wide range of amenities, including a fully appointed clubhouse, a pool, two lighted tennis courts, a fitness center and a wide range of community activities. The property’s 220 residences include one-, two- and three-bedroom apartments arrayed across 18 three-story buildings, with each apartment offering spacious floor plans, frost-free refrigerators, screened porches/sunrooms and dishwashers.

CLP’s plans for the property include addressing all deferred maintenance and implementing water- and energy-efficiency upgrades to reduce costs and improve sustainability. The property’s proximity to 280-unit Premier Apartments, which CLP acquired earlier this year, will allow the firm to benefit from operational and personnel efficiencies to reduce expenses.

Located in Cobb County, one of metro Atlanta’s most vibrant suburban counties, 300 Riverside is just 15 minutes away from the major employment centers of Downtown Atlanta and the Platinum Triangle. With Cobb County and other western suburbs attracting much of the metro’s commercial growth, the property is positioned to benefit from an influx of local jobs being created by Amazon, StitchFix, UPS and other employers.

“With thousands of jobs coming online in the region, Austell is poised to continue its ascendancy, and we expect to see a significant uptick in rental demand in the coming years,” said CLP CEO Elie Rieder. “While 300 Riverside has a fairly low vacancy rate, we anticipate pushing up the property’s occupancy as well as exploring additional avenues to create value. This upside and our favorable acquisition basis make the property a very attractive investment that will provide long-term controlled growth to CLP.”

In addition to its thriving business environment, Cobb County benefits from strong household incomes and a growing population, which has skyrocketed by nearly 25 percent since 2000. The county is marked by limited rental supply and high development costs, making existing multifamily properties particularly stable assets. Overall, apartment occupancy in the Atlanta metro climbed from under 90 percent in 2011 to approximately 95 percent today.

“The previous ownership group was looking to divest of its Atlanta holdings, and they wanted to close a quick off-market deal without a protracted marketing process,” said Rieder. “We had purchased several properties from the sellers in the past, and they recognized that we were nimble enough to underwrite the property in a very short timeframe and provide them with certainty of closing. CLP’s acquisition team has extensive experience spearheading similar off-market deals with tight timelines, and after a short negotiation period, we were able to provide the sellers with a quick close.”

Ranked by the U.S. Census Bureau as the most educated county in Georgia, Cobb County boasts one of the state’s most successful school systems as well as Kennesaw State University. The county is also home to a host of cultural and entertainment venues, including the SunTrust Park mixed-use complex, two Six Flags amusement parks and the Cobb Energy Performing Arts Centre.

300 Riverside is located in proximity to I-20, providing convenient access to the region’s major and secondary thoroughfares. It is also within blocks of Riverside Parkway, giving residents easy access to a wide range of dining and retail options.

 

About Castle Lanterra Properties

Formed in 2009, Castle Lanterra Properties (CLP) 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. CLP currently owns and manages over 7,000 units across 23 properties throughout the United States.

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.

CLP onboards two senior investor relations professionals and new senior counsel as company continues successful workforce housing value-add investment strategy 

SUFFERN, New York (AUGUST 09, 2019)– Castle Lanterra Properties (CLP), a New York-based national real estate investment firm, announced the expansion of its team with the hire of three senior professionals who will fill newly created roles to further elevate service standards for its investment partners and streamline legal proceedings for both corporate and transactional matters. Specifically, CLP has significantly expanded its investor relations team with the addition of industry veterans Lynn Glantz as Vice President of Investor Relations, and Sandeep Murray as Associate, Investor Relations. CLP has also tapped attorney David Sheril to serve as senior counsel.

The new hires follow a period of rapid expansion for CLP, as the company continues its successful strategy of targeting multifamily and workforce housing investments in strategic growth markets across the U.S. The new investor relations professionals represent a combined 30 years of experience in investment management, marketing and communications. Both will work to strengthen the company’s relationships with external investors and to further its marketing initiatives.

Ms. Glantz joins CLP with nearly 20 years of investor relations marketing and fundraising experience, with a focus on private real estate funds. Ms. Glantz’ background includes positions with multi-billion-dollar real estate investment firms Rockwood Capital and The Praedium Group — where she served as Vice President of Investor Relations — as well as Cantor Fitzgerald and UBS Global Asset Management. As Vice President of Investor Relations at CLP, Ms. Glantz will be responsible for overseeing fundraising and marketing initiatives, as well as servicing fund investors.

Ms. Murray joins CLP having worked with major institutional investment firms including M&G Real Estate — where she served as the institutional client service manager for clients investing in open-ended direct real estate funds — as well as with Goldman Sachs, AllianceBernstein Global Wealth Management Group and Columbia Threadneedle Investments in London. Over the course of her career, Ms. Murray has worked with a wide range of institutional and individual investors including public and private pension plans, financial institutions, sovereign wealth funds, trusts and high-net-worth individuals. As an investor relations associate at CLP, Ms. Murray will aid in the coordination of investor communications and reporting.

Mr. Sheril joins as CLP’s senior counsel and will work to manage and oversee all legal matters for CLP as it relates to legal guidance for acquisitions, dispositions, and financing. He will also provide support as it pertains to investor relations, and corporate governance. Prior to joining CLP, Mr. Sheril was with Simpson Thacher & Bartlett LLP and Hahn & Hessen LLP.

“We are very pleased to welcome Lynn, Sandeep and David to the Castle Lanterra family. The addition of these new team members follows several years of unprecedented growth in our business operations and multifamily investments,” Castle Lanterra Properties founder and CEO Elie Rieder said. “At CLP, we aim to provide unparalleled service to our partners. We are thrilled to have three such accomplished professionals with a wealth of experience in investor relations and legal counsel join our team. They will be instrumental in the continued growth of our firm.”

One of the country’s most prolific workforce housing investors, CLP has made a number of significant acquisitions in recent months, acquiring value-add apartment communities including Premier Apartments, a 280-unit property in Cobb County, Georgia; and The Overlook at Stonemill, a 216-unit property in Lynchburg, Virginia. At both communities, CLP intends to implement its value-add strategy, generating strong returns for investors and elevating living standards for residents.

 

About Castle Lanterra Properties

Formed in 2009, Castle Lanterra Properties (CLP) 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. CLP currently owns and manages over 7,000 units across 23 properties.

National multifamily investment company successfully sells Asher after completion of its extensive value-add improvement plan

AUSTIN, Texas (JUNE 30, 2019)- Castle Lanterra Properties (CLP) announced the sale of, Asher, a 452-unit apartment community located in Austin, TX that sits on a sprawling 56-acre, low-density site adjacent to a development restricted greenbelt.

After acquiring the 414,030-square-foot property in 2015 for $51,550,000, CLP embarked on a multi-million dollar strategic capital improvement plan to enhance the resident experience and create value. The campaign included a rebranding, a complete overhaul of the property’s clubhouse and leasing office, a conversion of a former laundry room to expand of the onsite 24-hour fitness center, extensive renovations to the property’s two pools, the introduction of new poolside seating areas, and a full exterior repaint of all buildings.  CLP also undertook renovations to 142 of the units, which has resulted in meaningful rent premiums while also providing proof of concept and substantial upside potential for the new owner.

In the four years that CLP has owned Asher, it has repositioned the property in a manner that has been able attract the same clientele that may otherwise choose to live in the new construction projects delivered in area during the past several years.  Asher differentiated itself by being able to offer a value product with Class-A type amenities and unit finishes, all on its expansive park-like grounds, which gives residents a much higher sense of privacy over other newer properties in the immediate submarket.

“We take great pride in our ability to elevate our residents’ standard of living through capital improvements.  Our success at Asher is a prime example of the strength of this approach,” said CLP CEO Elie Rieder. “The property’s high-end renovations helped CLP remain competitive in an Austin submarket that has seen significant new deliveries these past several years. Due to our favorable basis at acquisition plus the successful implementation of operational and property improvements, CLP was able to offer a superior product while still maintaining a value price point.  This led to consistently high occupancy rates and steady rent growth throughout our ownership period, as well as a favorable valuation at sale.”

In addition to its community amenities which include an internet cafe, game room, two resort-style pools with sundecks, outdoor fireplaces and covered parking ; Asher’s apartments feature top-of-the-line finishes, including stainless steel appliances, vinyl wood plank flooring, mosaic tile backsplashes, ceiling fans, fireplaces and granite countertops.

The property is adjacent to a development restricted greenbelt, placing the asset in a unique protected wooded setting. Spacious one, two, and three-bedroom floor plans average 916 square feet and more than half of these homes include covered parking via an attached garage or reserved carport space, which further differentiates the property. The combination of greenbelt views and proximal parking create a private atmosphere truly unique to the submarket.

With its superior ease of access to IH-35, residents of Asher can easily reach major employers and education centers. The Austin CBD and its nearly 10.8 million square feet of office space and the University of Texas at Austin with over 50,000 students are a quick 15-20 minute drive north on IH-35. Residents also have convenient access to South Austin employers including the 4,500-employee IRS Service Center. Additional student drivers at the property are St. Edward’s

University and Texas State University, with 4,600 and 38,700 students respectively. Asher’s South Austin location along IH-35 allows residents to conveniently access a wide range of employers from Austin to San Marcos and San Antonio.

 

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 over 7,000 units across 22 properties throughout the United States.

National multifamily investment company acquires The Overlook at Stonemill, seizing the opportunity to potentially develop an additional 80 units in thriving Virginia metro

LYNCHBURG, Va. (JUNE 27, 2019) – Castle Lanterra Properties (CLP), a privately held

real estate investment company based in New York, announced the acquisition of The Overlook at Stonemill, a 216-unit multifamily workforce housing community located in Lynchburg, Virginia.

Constructed in 2001, The Overlook at Stonemill is comprised of a mix of one-, two- and three-bedroom apartments, with a loyal tenant base which has consistently produced occupancy percentages in the high 90’s. The spacious apartments are well appointed with nine-foot ceilings, fully-equipped kitchens, garden tubs in all Master bedrooms, oversized walk-in closets, in-unit washer-dryers and private patios/balconies. The property offers residents a wide range of amenities, including a resort-style swimming pool, a fully appointed clubhouse with a fireplace, walking/jogging trails and a 24-hour fitness center.

CLP has plans to carry out an extensive repositioning campaign at the property, which has not undergone any upgrades or modernization programs since being built.  The plan includes the renovation of apartment interiors, the curing of all deferred maintenance, as well as the enhancement and introduction of amenities. 

“The Overlook at Stonemill was built nearly 20 years ago, and while the property is in good condition, we see a tremendous opportunity to capitalize on the growing demand for high quality rental housing in this submarket,” CLP CEO Elie Rieder said. “In addition to the value we expect to generate through capital improvements, our acquisition also includes several acres of land adjacent to the property already zoned and entitled for the construction of 80 units. Given the positive supply/demand dynamics of the Lynchburg rental market, coupled with the property’s close proximity to major employment centers, the ability to develop and increase the unit count at Overlook by nearly 40% is an accretive element of the transaction that we found very appealing.”

A key urban center in Virginia, Lynchburg is home to a diverse economy that is anchored by the high-tech, healthcare, higher education and nuclear power sectors, and was named as one of the “Top 50 Best Places for Business and Careers” by Forbes.

The Overlook at Stonehill is ideally located in the heart of the Lynchburg metro area, within minutes of prominent retail options at River Ridge Mall and Brookville Plaza and supermarkets including Aldi and The Fresh Market. It is also just miles from the area’s major employers including Centra Healthcare Solutions and BWX Technologies.

“In addition to Lynchburg’s strong, diverse economy, the area is home to Liberty University, the largest private non-profit university in the country, which generates over $1 billion in economic activity per year,” added Rieder. “Liberty has limited student housing, and, with the school seeking to expand its on-campus enrollment significantly in the coming years, its growing student body should increase the area’s already-robust apartment demand. Based on the property’s competitive set, there is a strong demand in Lynchburg for apartments with higher-end finishes and amenities, and we’re eager to begin the improvements campaign and elevate living standards for our residents.”

 

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 generating attractive risk-adjusted returns for its investment partners. Castle Lanterra Properties currently own and manage over 7,000 units across 22 properties.

COBB COUNTY, Ga. (June 14, 2019) – Castle Lanterra Properties (CLP), a New York-based, privately held real estate investment company, announced the acquisition of Premier Apartments, a 280-unit multifamily property in Austell, Georgia. For CLP, this acquisition expands the firm’s local multifamily portfolio to nearly 1,000 units, underscoring CLP’s strong belief in the future economic outlook of the Atlanta MSA and the value-add upside this region presents to investors.

Built in 1972, Premier Apartments is comprised of 280 one-, two- and three-bedroom apartments housed across 24 buildings on a 24-acre property. Residents of Premier Apartments enjoy a range of on-site amenities, including tennis courts, a community lake, a recently upgraded swimming pool, and playgrounds.

“CLP values intrinsic value when identifying new investment opportunities,” said CLP CEO Elie Rieder. “In addition to its prime location just outside of Atlanta – about 15 minutes from both Downtown Atlanta and the Platinum Triangle commercial hub – Premier Apartments presents us with a tremendous opportunity to elevate the standard of living for our residents while creating value through physical and operational enhancements.”

One of the most robust real estate markets in the country, Cobb County benefits from a growing population, which has skyrocketed by nearly 25 percent since 2000, and strong household incomes. The county is marked by limited rental supply and high development costs, making existing multifamily properties particularly stable assets. Overall, apartment occupancy in the Atlanta metro climbed from under 90 percent in 2011 to approximately 95 percent today.

The property is located in proximity to I-20, providing convenient access to the region’s major and secondary thoroughfares. It is also within blocks of Riverside Parkway, giving residents easy access to dining and retail options.

“One of CLP’s hallmarks is our nimbleness and our ability to move quickly and close transactions in an efficient timeframe, and that core capability was instrumental in completing this deal,” added Rieder. “In this case, we were able to move very quickly in reaching an agreement with the seller, enabling us to acquire the property at a very attractive basis.  This is core to our risk-adjusted investment strategy.”

 

About Castle Lanterra Properties

Castle Lanterra Properties (CLP) is a privately held real estate investment company focused on the acquisition and management of quality income-producing multifamily properties within strategic growth markets of the United States. Central to the mission of CLP is the preservation of workforce housing communities. By leveraging its deep in-house operating platform, CLP aims to revitalize housing communities with modern, functional amenities, enhanced technology, and vibrant social programs that positively impact our residents.  Through an investment model that has been curated over the course of three generations, CLP has built an extensive track record of delivering superior risk-adjusted returns for its investment partners. Today CLP owns and manages in excess of 7,000 apartments across 23 properties.