New York-based Castle Lanterra Properties (CLP) is rapidly expanding in the Austin metro, announcing the fourth acquisition to the firm’s residential holdings in the Texas capital on August 31.
Arrangement in the East Riverside corridor is a recently renovated apartment building containing 370 units. The residential property was built in 1973 and extensively renovated in 2013 for $10 million.
Contemporary comforts, including two dog parks, pools, a full fitness center and resident lounge, were incorporated just a few years ago to appeal to the growing Austin renter demographic.
The property appeals to Austin’s large young population, with splashes of color and sleek, modern lines in the building’s design. More than 90 percent of the units were gutted during the extensive renovations, says Castle Lanterra, which plans to refurbish the final 10 percent of units when they become vacant.
“The acquisition targets a strong in-place yield of more than 11 percent in a growing market with demand drivers that are expected to continue to support long-term rent growth,” Managing Director, Austin Alexander, said in a statement.
Alexander says the property mirrors many of the new buildings popping up in the Austin metro, but at a lower monthly cost for the consumer.
Austin has a high rate of incoming new residents, spurred by the area’s remarkable high employment rates. Arrangement is just three miles from downtown Austin, which holds approximately 10 million square feet of office space and numerous lifestyle amenities for young professionals.
Oracle recently announced plans to open an expanded 27-acre campus just one mile from Castle Lanterra Properties’ newest property. The project is expected to bring 1,500 direct jobs and 4,000 total jobs when redevelopment commences.
Castle Lanterra formed in 2009 for the acquisition and management of multifamily properties across the nation’s most active rental markets. CLP currently owns and manages 7,300 units across the country, including 1,627 units in the Austin metro.