Suffern Real Estate Investment Firm Acquires Multifamily Property in Texas

Real Estate In-Depth | June 3, 2016

SUFFERN, NY– Castle Lanterra Properties has acquired 1825 Apartments, a 455-unit community in Pflugerville, a suburb of Texas’ state capital of Austin, announced CLP Founder and CEO Elie Rieder. This is the third Austin area acquisition for the Suffern, NY-based firm.

The community, named for State Route 1825 that fronts the property, consists of 60 buildings that were built in two phases: The 351-unit 1825 Place was completed in 2001, and the 104-unit 1825 Cottages was originally constructed in 1986. Community features include a resort-style pool with a waterfall, a 24-hour fitness center, a business center with WiFi access, outdoor playground and pet park, carports, attached and detached garages, and a recently renovated clubhouse. No financial terms of the transaction were released.

“The previous owner recently spent more than $2 million on capital improvements,” said Jim Brady, vice president of operations and property management. “In addition to renovating the clubhouse, the effort included new roofs and siding at Cottages, exterior repainting, the installation of solar panels, and unit improvements. Our business plan calls for the continuation of upgrades to the units, as well as additional property beautification, upgrading the amenities already in place, and other proposed enhancements.”

The firm entered the Austin market in 2015 with the purchase of Stonegate, a 452-unit apartment community near downtown Austin, and earlier this year acquired Villas Tech Ridge, a 350-unit Class A apartment community located within the master planned development of Tech Ridge.

“We are pleased to be expanding our presence in metropolitan Austin,” said CLP Managing Director Austin Alexander, who recently relocated to the city to oversee the firm’s operations in the southern region. “The city continues to bring in a highly educated and upwardly mobile workforce attracted by both the high-quality lifestyle and economic opportunities the city has to offer. As a long term owner, we look forward to contributing to the continued growth of this market.”

In March, Castle Lanterra Properties reported it had acquired River Park, a 224-unit apartment community in Somerset County’s borough of Raritan, NJ. The $56-million transaction marked CLP’s second New Jersey acquisition of late, following its purchase of Harbor Pointe, a 544-unit, Class A waterfront property that was purchased for $147.5 million on October 21, 2015.

The seller of River Park was a global insurance group. Cushman & Wakefield’s Metropolitan Area Capital Markets Group represented the seller and procured CLP as buyer in this significant trade.

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. CLP currently owns and manages a portfolio comprised of 6,800 units with a value in excess of $1 billion.