Net Migration Results in More Multifamily Changing Hands

Castle Lanterra Properties has recently acquired the 455-unit community.

PFLUGERVILLE, TX—As Texas’ state capital, Austin ranks number one for net in-migration among the top 50 US metropolitan areas. In the suburbs of Austin, 1825 Cottages was named for State Route 1825 that fronts the property. In addition to being situated near the epicenter of the region’s growing tech sector, the property has high visibility, nearby retail, easy access to major highways and is located in the highly desirable Pflugerville school district. 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. Castle Lanterra Properties has recently acquired the 455-unit community for an undisclosed price. Castle Lanterra managing director, Austin Alexander , who recently relocated to oversee the firm’s operations in the southern region, tells GlobeSt.com: “Because of our relationship with the lender, we were able to assume the existing Fannie Mae financing and close on an expedited time frame, only six weeks from signing the purchase and sale agreement. This met the seller’s objectives and enabled us to purchase the property at a discount to prevailing market prices, providing us with an excellent cost basis on a very well-maintained property in a strong and rapidly growing market.” Community features include a resort-style pool with a waterfall, a 24-hour fitness center, a business center with Wi-Fi access, outdoor playground and pet park, carports, and both attached and detached garages. “The previous owner recently spent more than $2 million on capital improvements,” said Jim Brady , vice president of operations and property management of Castle Lanterra. “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 acquisition marks Castle Lanterra’s third to date in the metropolitan Austin residential market. The firm entered the 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 Alexander. “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.” Formed in 2009, Castle Lanterra Properties is a privately held real estate investment company focused on the acquisition and management of income-producing multifamily properties within strategic growth markets throughout the United States. Castle Lanterra has a value-enhancement program that includes thoughtful renovations, operational improvements and ancillary income development. Castle Lanterra currently owns and manages a portfolio comprised of 6,800 units with a value in excess of $1 billion.