CASTLE LANTERRA PROPERTIES ACQUIRES NEWLY CONSTRUCTED VUE AT BELLEAIR IN CLEARWATER, FLA.

(December 10, 2019 – CLEARWATER, Fla.) – Castle Lanterra Properties (CLP), a New York-based national real estate investment firm, acquired Vue at Belleair, a newly-constructed 339-unit luxury garden apartment community at 1551 Flournoy Circle West in Clearwater, Florida. The firm purchased the property from developer Flournoy Companies for $77.25 million, representing a cost of $227,876 per unit.

While recognized for investing in value-add properties, CLP believes that Vue at Belleair represents a remarkable opportunity given a lack of new, high-quality housing in the immediate area and a range of positive demographic shifts occurring more broadly in the Tampa Bay area.

“The full lease-up of this property is a testament to the fact that Flournoy Companies has developed one of the most beautifully constructed class-A properties in this Tampa Bay submarket and reflects the high demand for housing of this caliber in the area,” said CLP CEO Elie Rieder. “While value-add is our bread-and-butter, we believe this striking newly-constructed product will allow us to achieve steady, controlled appreciation given its unparalleled location near the Gulf but outside of flood zones. The quality of construction and optimal location within the submarket gives us confidence that we can achieve long-term success by implementing our best-in-class management and capitalizing on this gap in the market.”

Since its foray into South Florida in 2017 with its acquisition of Loftin Place in West Palm Beach, CLP has closely monitored the Tampa Bay area and its remarkable rebound since the global recession. With this latest transaction, CLP currently owns and operates 26 properties comprising more than 7,000 units. The firm continues to seek opportunities to acquire properties across the U.S. that are positioned to benefit from positive demographic and economic shifts.

In a sweeping review of 515 U.S. cities conducted by New York-based WalletHub, Tampa ranked 10th among all large American cities when comparing metrics such as population, job and business growth, as well as building permit activity. The area’s friendly business environment and high quality of life has continued to attract residents and businesses, boosting housing demand and rent growth.

“The Tampa Bay area has become a target market for us based on the value proposition new construction presents coupled with numerous positive demographic trends the area has experienced in recent years, including rapid population growth that has made it one of the fastest-growing U.S. metro areas,” said Benjamin Loney, Head of Acquisitions at CLP. “We’re optimistic that these positive trends will continue to create robust demand for class-A housing as existing supply is largely absorbed and a rapid influx of new residents demands higher-end product.”

Vue at Belleair’s one-, two- and three-bedroom apartments feature nine-, 10- and 11-foot ceilings and sweeping views of Tampa Bay, with property amenities including a rooftop terrace with bay views, a saltwater swimming pool, an outdoor kitchen and two dog parks. In addition, the amenity building houses a performance fitness center with wellness and spin room; a gourmet coffee bar; two massage rooms and a billiards room. The property is located in Pinellas County along US-19, within a 25-minute drive of Tampa’s Westshore principal business district and Gateway residential district, Clearwater’s central business district and Clearwater International Airport, as well as downtown St. Petersburg.

The largest resident age group at Vue at Belleair, between 26 and 46 years old, has an average household income of over $115,000 per year, which equates to a 5.9x income-to-rent ratio that is approximately double the 2.5-3.0x market standard typically required to qualify for a lease. The income level demonstrates a tenancy that can absorb rent and fee increases without being displaced due to affordability and reflects a growing Tampa economy that has the largest concentration of financial services jobs in the Southeast and has experienced a tremendous recent uptick in the number of incoming tech companies.

The steady flow of quality jobs has helped achieve a current unemployment rate of just 2.9%. The city has over 10.4 million square of office space and several high-profile office projects in the pipeline, including the 20-story, 380,000-square-foot 1001 Water Street—part of the $3 billion multi-phased Water Street Tampa development that will include more than nine million square feet of office, residential, retail, hospitality, educational and cultural space when complete. The region has recently attracted companies such as Mo­saic, the first Fortune 500 firm to relocate to Tampa, as well as WebstaurantStore, the world’s largest online restaurant supply company.

Luis Elorza from Cushman & Wakefield Tampa was the lead broker in the transaction.

About Castle Lanterra Properties

Formed in 2009 by Elie Rieder, 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. Mr. Rieder has bought and sold tens of thousands of residential properties throughout North America. Through a rigorous hands-on value-add investment program that includes thoughtful renovations, operational improvements and ancillary income development, as well as the acquisition of quality new construction, CLP aims to maximize NOI and provide attractive risk-adjusted returns for its investment partners. CLP currently owns and manages in excess of 7,000 units across 26 properties throughout the United States.

(December 11, 2019 – DENVER, Co.) – Castle Lanterra Properties (CLP), a New York-based national real estate investment firm, acquired RiDE at RiNo, a newly-built 84-unit class-A apartment community at 3609 Wynkoop Street in the River North (RiNo) neighborhood of Downtown Denver. The firm purchased the property from developer McWhinney.       

CLP has an established presence in the Denver market and is bullish on the metro area’s future given sustained positive rent and population growth and a massive redevelopment effort that is transforming the RiNo neighborhood.

“We are excited to add this property to our portfolio given its high-quality construction and the tremendous commercial growth and development pipeline that the trendy RiNo neighborhood will benefit from in the coming years,” said CLP CEO Elie Rieder. “We believe the millions of square feet of office development set to come online will create thousands of new, high-quality job opportunities that will continue to draw young people to this neighborhood, resulting in sustained income and rent growth.” 

CLP made its foray into the Denver market in December 2016 with the acquisition of the 369-unit Regatta Sloan’s Lake apartments, and the subsequent purchase of three additional multifamily properties in other Denver submarkets in 2017 and 2018. With this latest transaction, CLP now owns and operates 25 properties comprising more than 7,000 units, as the firm continues to seek opportunities to acquire properties in growing U.S. markets

In 2018, the Denver metro area achieved annual rent growth of 3.7 percent while experiencing the highest level of absorption on record, bolstered by a strong economy, steady population growth and a remarkably low unemployment rate of just 3 percent, according to Newmark Knight Frank (NKF), which served as broker for this transaction. Downtown Denver contains 44.5 million square feet of office space accommodating approximately 172,000 employees, with 7.1 million square feet of additional office space that has either been completed in the last year or in the pipeline that will create an additional estimated 28,400 new jobs, according to NKF. The incoming office roster includes new headquarters for HomeAdvisor as well as Alterra Mountain Co.

The RiNo neighborhood is the arts & entertainment center of Denver, featuring over 60 restaurants and bars, and the largest concentration of craft beverage manufacturers in the U.S. The property will also benefit from 300,000 square feet of retail and entertainment space slated for delivery within a five-minute walk of the property.

“The neighborhood is experiencing an unprecedented level of development that we believe will be transformative, creating opportunities for a live-work-play lifestyle that is likely to benefit multifamily housing in particular,” said Austin Alexander, managing director at CLP. “The property offers a one-of-a-kind unit mix and easy access to employment opportunities, nightlife and transportation, and we are optimistic regarding the potential appreciation of this asset over time.”

The property’s 84 modern studios and larger live/work units range between 369 and 849 square feet with generous loft-style 12- or 18-foot ceilings. Amenities include a 24-hour fitness center, a rooftop deck with a BBQ area, club and conference rooms, lounge, underground parking, bike repair station and a video intercom system. The property is a block away from the pedestrian bridge linking to the 38th and Blake Rail Station on the commuter rail A-Line connecting to Union Station downtown and Denver International Airport.

In addition to RiDE at RiNo and Regatta Sloan’s Lake, CLP’s additional area properties include Mountain Vista, a 257-unit multifamily property in Lakewood, CO; The Ranch at Bear Creek, a 201-unit property also in Lakewood, CO; and the Stratus Townhomes, a 280-unit community in Westminster, CO. 

Terrance Hunt and Shane Ozment from NKF’s team in Denver were the lead brokers in the transaction.

About Castle Lanterra Properties

Formed in 2009 by Elie Rieder, 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. Mr. Rieder has bought and sold tens of thousands of residential properties throughout the United States. Through a rigorous hands-on value-add investment program that includes thoughtful renovations, operational improvements and ancillary income development, as well as the acquisition of quality new construction, CLP aims to maximize NOI and provide attractive risk-adjusted returns for its investment partners. CLP currently owns and manages over 7,000 units across 25 properties throughout the United States.

(December 10, 2019 – Atlanta, Ga.) – Castle Lanterra Properties (CLP), a New York-based national real estate investment firm, has sold the 322-unit rental community Landing Square at 3378 Greenbriar Pkwy in Atlanta, Georgia to InterCapital Partners, LLC for $45 million.

CLP acquired the property in December 2016 in an off-market transaction for $32 million, subsequently executing its signature value-add plan that allowed the firm to complete its business plan ahead of schedule while maximizing returns for its investment partners. 

“We originally purchased the property through an existing relationship at a price point below both broker value estimates and property appraisals, and subsequently implemented sweeping improvements to elevate the property’s appeal and marketability,” said CLP CEO Elie Rieder. “We were able to exit the investment ahead of schedule and our value-add strategy has allowed us to surpass our original expectations and achieve outsized returns by capitalizing on the growth of the Atlanta market over the last three years.” 

CLP’s value-add strategy included a comprehensive renovation of 153 individual units and common areas, which boosted the property’s value during a period of unprecedented growth in Atlanta. The capital improvement program vastly improved the property’s marketability and provided for substantial rent increases, leading to an outpour of interest from multiple potential buyers and a competitive off-market bidding process. Common area improvements included renovations to the clubhouse, leasing office and fitness center plus various enhancements to elevate curb appeal, including new landscaping, new sealcoat and striping, LED corridor lighting, pool and furniture improvements and new signage.

Landing Square, built in 2008, features 322 generously sized units averaging 1,097 square feet. Interiors feature nine-foot ceilings, open kitchens, sunrooms, arched doorways, ceramic tile backsplashes, and washer/dryer sets. An inviting leasing center includes a business center, conference/lounge room, and an open kitchen area with a bar and billiard table. The renovations to the leasing center, clubroom, resort-style pool and fitness center allowed CLP to separate the property from its competition.

The property is well-located off Interstate 285, which provides a nearby on-ramp to Atlanta’s transportation network and easy access to all major employment centers in the metro area, including a downtown area with nearly 200,000 jobs.  Atlanta’s CBD and the Hartsfield-Jackson Atlanta International Airport, the world’s busiest airport and Atlanta’s largest employer, are within a 15-minute drive of the property. Landing Square is also situated adjacent to a large opportunity zone, which is likely to stimulate future investment and gentrification.

Atlanta is home to leaders in healthcare, education, transportation, retail and manufacturing, providing a strong economic foundation for the city to experience robust growth following the recession. The metro’s unemployment rate dropped to 2.9% in September, the lowest since late 2000, while adding 1,500 jobs, according to the Georgia Department of Labor. Over the last year, the metro area added 53,100 jobs, well ahead of any other Georgia metro area.

“The property benefits from an excellent location offering access to hundreds-of-thousands of jobs in nearby business districts,” said Austin Alexander, managing director with CLP. “The growth of the Atlanta market in recent years has been remarkable, with thousands of jobs added while maintaining a very low unemployment rate. This growth, coupled with our comprehensive value-add program, allowed for this very successful strategic exit.” 

Keith Geiger and David Wagner from CBRE’s Atlanta office were the lead brokers on the transaction.

About Castle Lanterra Properties

Formed in 2009 by Elie Rieder, 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. Mr. Rieder has bought and sold tens of thousands of residential properties throughout North America. Through a rigorous hands-on value-add investment program that includes thoughtful renovations, operational improvements and ancillary income development, as well as the acquisition of quality new construction, CLP aims to maximize NOI and provide attractive risk-adjusted returns for its investment partners. CLP currently owns and manages over 7,000 units across 25 properties throughout the United States.

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.