New York Firm Sells Austin Apartment Complex For $70M

AUSTIN, TX — New York-based Castle Lanterra Properties on Monday announced the sale of a 452-unit Austin apartment community located in Austin that's situated on a sprawling 56-acre, low-density site adjacent to a development restricted greenbelt for $70 million.

After acquiring the 414,030-square-foot property dubbed Asher in 2015 for $51.5 million, Suffern, New York-based CLP embarked on a multi-million dollar strategic capital improvement plan to enhance the resident experience and create value, officials explained in a press advisory. The campaign included a re-branding, a complete overhaul of the property’s clubhouse and leasing office, a conversion of a former laundry room to expand of the onsite 24-hour fitness center, extensive renovations to the property’s two pools, the introduction of new poolside seating areas, and a full exterior repaint of all buildings.

Moreover, CLP also undertook renovations to 142 of the units at the complex located at 10505 S. Interstate 35 Highway, "...which has resulted in meaningful rent premiums while also providing proof of concept and substantial upside potential for the new owner," officials added. The company has several other Austin properties in its portfolio, an official told Patch via email.

In the four years that CLP has owned Asher, it has repositioned the property in a manner that has been able attract the same clientele that may otherwise choose to live in the new construction projects delivered in area during the past several years. Asher differentiated itself by being able to offer a value product with Class-A type amenities and unit finishes, all on its expansive park-like grounds, which gives residents a much higher sense of privacy over other newer properties in the immediate sub-market, according to a press advisory.

“We take great pride in our ability to elevate our residents’ standard of living through capital improvements," CLP's CEO Elie Rieder said. "Our success at Asher is a prime example of the strength of this approach."

Rieder explained how the investment ensured the firm's competitiveness in a brisk market: "The property’s high-end renovations helped CLP remain competitive in an Austin sub-market that has seen significant new deliveries these past several years. Due to our favorable basis at acquisition plus the successful implementation of operational and property improvements, CLP was able to offer a superior product while still maintaining a value price point. This led to consistently high occupancy rates and steady rent growth throughout our ownership period, as well as a favorable valuation at sale.”

In addition to its community amenities which include an internet cafe, game room, two resort-style pools with sundecks, outdoor fireplaces and covered parking, the property's units feature top-of-the-line finishes, including stainless steel appliances, vinyl wood plank flooring, mosaic tile back splashes, ceiling fans, fireplaces and granite counter tops.

The property is adjacent to a development restricted greenbelt, placing the asset in a unique protected wooded setting, officials noted. Spacious one-, two- and three-bedroom floor plans average 916 square feet, with more than half of these homes include covered parking via an attached garage or reserved carport space in further differentiating the property. "The combination of greenbelt views and proximal parking create a private atmosphere truly unique to the sub-market," officials noted.

With easy access to Interstate 35, residents of Asher can easily reach major employers and education centers. The Austin CBD and its nearly 10.8 million square feet of office space and the University of Texas at Austin with over 50,000 students are a quick 15-20 minute drive north on I-35.

In addition, residents have convenient access to South Austin employers including the 4,500-employee IRS Service Center. Additional student drivers at the property are St. Edward’s
University and Texas State University, with 4,600 and 38,700 students respectively. Asher’s South Austin location along IH-35 allows residents to conveniently access a wide range of employers from Austin to San Marcos and San Antonio.

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 over 7,000 units across 22 properties throughout the United States. For more information, visit https://castlelanterra.com/.