Elie Rieder
Castle Lanterra Properties continued to expand its geographic footprint and diversify its portfolio in 2017, a trend which is expected to continue. The privately-held real estate investment company launched the new year with an expanded portfolio of 20 multifamily communities comprised of 9,500 units and valued at more than $2 billion. 2017 marked the firm’s entry into new markets including San Antonio and West Palm Beach, and further expansion in the Denver MSA.
“During the last two years, we have complemented our existing value-add portfolio with stable core urban properties in unrivaled locations as a key element of our investment strategy,” said Elie Rieder, founder and CEO of the Suffern, N.Y.-based company. “We will pursue opportunities across asset classes in 2018 as we continue our company’s steady, controlled growth in new markets and with strong returns for our investors.”
Founded in 2009, CLP has focused on the acquisition of multifamily apartment investments in fundamentally sound secondary and tertiary markets. “We have been active in regions that possess the necessary attributes to support long term rent growth and sustained market appreciation,” Rieder noted. “We mitigate risk through our meticulous due diligence, deep market knowledge and hands-on management style.”
Widened Geographic Holdings in Texas, Florida and Colorado
The company diversified and expanded its presence in several regions during 2017 starting with the 349-unit Agave community in San Antonio. The class A energy-efficient urban asset features unmatched amenities and sits at the doorstep of the city’s CBD. San Antonio has emerged as one of the strongest multifamily markets in the country due to its healthy economic and population growth.
On the heels of the Agave purchase, CLP widened its geographic footprint with the acquisition of the 259-unit, class A+ Loftin Place apartment community in south Florida’s Palm Beach County. The eight-story property features market-leading amenities and panoramic views of the city, Intracoastal Waterway and Atlantic Ocean beaches.
“With both Agave and Loftin Place, we leveraged the markets’ strong fundamentals and bought two best-in-class assets that will benefit from CLP’s property management,” said Rieder.
CLP increased its total unit count to more than 900 in the Denver MSA as well. The company acquired two properties in the city’s submarkets: the 257-unit Mountain Vista Apartments in the Lakewood North submarket, and the 280-unit Sunset Ridge Townhomes in Westminster, part of the low vacancy, high-rent-growth Arvada submarket. The purchases marked the second and third acquisition for the firm in the Denver MSA following the purchase of Regatta Sloan’s Lake in December 2016. Both properties benefitted from previous ownership investments that included significant upgrades, and CLP is solidifying both properties’ competitive positioning with targeted renovations and increased operational efficiencies.
“Denver’s metro area is poised to grow to 4 million residents – a 30 percent gain over the next 25 years – and job growth throughout the metro area is outpacing the national average,” said Rieder. The evolving business hub has attracted finance, energy and engineering companies and a growing skilled workforce. “The result is strong demand for high quality rental housing at an affordable price point such as that at Mountain Vista and Sunset Ridge,” Rieder added.
Continuing Progress Through a Growing Organization
Strong performances were evident at numerous other CLP assets, including Regatta Sloan’s Lake, located in Denver’s West Colfax district. The new, class A+, 369-unit apartment asset is part of the larger SLOANS mixed-use community – a 19-acre, seven-block infill redevelopment of a former hospital campus that will eventually incorporate a mix of luxury condominiums, townhomes, and retail.
CLP continued the steady expansion of its talented team with the addition of Edmund Hannon during the year as chief operating officer. Possessing three decades of experience and a deep understanding of operational best practices, Hannon oversees all the company’s non-investment related activities. The company also welcomed additional accounting and administrative staff members.
To support its growth, CLP expanded its headquarters in 2017 as well with the acquisition of space adjacent to its existing headquarters in Suffern. The revamped workspace features upscale finishes and furnishings, open areas for collaboration and private conference rooms for visitors.
CLP’s core capabilities encompass meticulous due diligence, underwriting expertise, acquisition and disposition. 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.
