Castle Lanterra Multifamily Achieves Remarkable Success with Sale of Two Residential Properties in Corpus Christi, TX
National Real Estate Investment Firm Announces Robust IRR as Capital Improvements, Hands-On Management Create Exceptional Value
CORPUS CHRISTI, Texas, Aug. 15, 2022 — Castle Lanterra Multifamily, a division of Castle Lanterra, a New York-based national real estate investment firm, today announced the sale of two prominent residential communities in Corpus Christi, TX that provided a strong Internal Rate of Return (IRR) for the firm.
Castle Lanterra Multifamily recently sold Azure at 7221 South Staples Street and Baypoint Apartments at 1802 Ennis Joslin Road, which the investment firm initially acquired in July 2016 and May 2018, respectively. Castle Lanterra implemented its industry leading capital improvement and hands-on asset management approach to create two gems in the market and significantly raise the residential properties’ status and value within the Corpus Christi area. As a result, the sale of Azure achieved an IRR of 17.2%, while Baypoint posted an IRR of 19.1%.
“We are thrilled with the work we have completed at both residential communities and the returns we were able to realize. Both assets have been a great success, with strong IRR and attractive equity multiples,” said Elie Rieder, founder and CEO of Castle Lanterra. “We feel the timing was ideal to implement our exit strategy following a multi-year hold with significant capital investments in the assets. In addition to the disposition of these two Corpus Christi properties, we’ve completed over $240 million in sales and $210 million in new acquisitions during the first half of 2022 and are on pace to surpass our record-breaking 2021 activity.”
Azure is a 220-unit, garden-style apartment community located along the popular South Staples Street with excellent visibility and accessibility to many of Corpus Christi’s major economic drivers. Built in 1997, Azure features 220 one-, two- and three-bedroom units efficiently positioned across 9.5 acres in 10 three-story residential buildings surrounded by professionally landscaped grounds to create a secluded, quiet environment. Community amenities are highlighted by an open setting resident lounge area with a flat screen TV and billiards table, a Wi-Fi coffee bar, business center and a 24-hour fitness center, a sparkling swimming pool with lounge deck and chairs, covered picnic areas with BBQ grills, sand volleyball court, and an impressive dog park equipped with playful agility training equipment.
Castle Lanterra Multifamily executed on a transformational renovation at Azure that included the investment of over $700,000 over its hold period in Capex and the successful implementation of an upscale value-add program on approximately 45% of the units.
Baypoint Apartments is a one-of-a-kind community featuring 350 units built in 1998. The waterfront asset has direct frontage on Oso Bay, providing unmatched views and a large waterfront greenbelt. Among Baypoint’s distinctive community amenities are climate-controlled storage, boat parking, the largest dog park in Corpus Christi, Bayside Sports Courts, and a state-of-the-art fitness center with Peloton bikes and CrossFit equipment.
At Baypoint Apartments, Castle Lanterra Multifamily invested nearly $6 million in capital projects including the extraordinary reimagining of the clubhouse that captures the attention of every resident and potential renter, a waterfront dog park (largest in the submarket), waterfront playground, the creation of a pet spa and installation and the enhancement of approximately 50% of the units.
SOURCE Castle Lanterra