“The acquisition targets a strong in-place yield of more than 11% in a growing market with demand drivers that are expected to continue to support long-term rent growth,” said managing director, Austin Alexander, who relocated to Austin, TX to oversee Castle Lanterra's operations there and expand its presence in the southern region. “The property now features a level of design and quality that competes with new construction, but at a value-oriented price point.”

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. It takes properties through a value-enhancement program that includes thoughtful renovations, operational improvements and ancillary income development.

“The renovations have been transformative, to say the least. The property now offers modern amenities, including two dog parks, two large pools, an oversized fitness center, and a brand new resident lounge,” said Rieder. “As a nod to the previous owner's vision, this property has been upgraded with colorful design details and modern finishes to meet the demand of this fast-growing market and also draw in an increasingly youthful demographic. In addition to the upgraded amenities, more than 90% of the units have been gut-renovated, and our capital plans include renovating the remainder of the units as they become vacant.”

Castle Lanterra 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 owns and manages a portfolio comprised of more than 7,300 units and a value in excess of $1 billion.

AUSTIN, TX—Arrangement is a 370-unit apartment property located in Austin's revitalized East Riverside corridor. It was originally constructed in 1973 and had an extensive $10 million redevelopment in 2013.

The multifamily property has recently been acquired by New York-based firm, Castle Lanterra Properties, for an undisclosed amount. The acquisition marks Castle Lanterra's fourth in this growing metro since entering the market in March 2015.

Elie Rieder, founder and CEO of Castle Lanterra, tells GlobeSt.com: “With Arrangement being our fourth acquisition in Austin this past year, it is no secret that we're big believers in the long term outlook of this market. There's a reason why companies like 3M, Apple, Samsung, Oracle, Cisco and Intel continue to invest in and expand their presence in Austin. It has an abundance of intellectual talent, culture, recreation, dining and entertainment. Together, you end up with a city that offers its residents with a unique blend of historical charm and forward-thinking progress. Austin is the modern blueprint for sustainable economic growth.”

Potential rent growth is borne out by the fact that Austin ranks number one in the US for net in-migration and has the lowest unemployment rate among the country's 50 largest metropolitan areas. The property is situated less than three miles from downtown Austin, a short commute from almost 10 million square feet of office space and numerous restaurant and nightlife options. Less than a year ago, Oracle announced a major expansion less than one mile from Arrangement, a project that will bring more than 1,500 direct jobs and 4,000 total jobs to a new 27-acre corporate campus.

“The acquisition targets a strong in-place yield of more than 11% in a growing market with demand drivers that are expected to continue to support long-term rent growth,” said managing director, Austin Alexander, who relocated to Austin, TX to oversee Castle Lanterra's operations there and expand its presence in the southern region. “The property now features a level of design and quality that competes with new construction, but at a value-oriented price point.”

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. It takes properties through a value-enhancement program that includes thoughtful renovations, operational improvements and ancillary income development.

“The renovations have been transformative, to say the least. The property now offers modern amenities, including two dog parks, two large pools, an oversized fitness center, and a brand new resident lounge,” said Rieder. “As a nod to the previous owner's vision, this property has been upgraded with colorful design details and modern finishes to meet the demand of this fast-growing market and also draw in an increasingly youthful demographic. In addition to the upgraded amenities, more than 90% of the units have been gut-renovated, and our capital plans include renovating the remainder of the units as they become vacant.”

Castle Lanterra 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 owns and manages a portfolio comprised of more than 7,300 units and a value in excess of $1 billion.