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Castle Lanterra Properties Enters South Florida Market with Multifamily Property Acquisition in West Palm Beach

| July 20, 2017 | 0 Comments

Castle Lanterra Properties, LLC
One Executive Blvd., Suite 204
Suffern, NY 10901

Media Contact: Karen Ravensbergen / (201) 796-7788 / @carylcomm

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WEST PALM BEACH, July 20, 2017 – Castle Lanterra Properties (CLP) has expanded its multifamily portfolio to Palm Beach County, Florida with the purchase of the 259-unit Loftin Place apartment community.

Located in downtown West Palm Beach, Loftin Place is a class A-plus, mid-rise community offering panoramic views of the city, Intracoastal Waterway and scenic Atlantic Ocean beaches. Completed in late 2015, the eight-story property features market-leading amenities including a rooftop tennis court, jogging track, gazebo, lounge and landscaped sundeck; resort-style pool with lap lanes; state-of-the-art fitness center and yoga studio; outdoor billiard table and BBQ area; conference center and resident catering kitchen; and garage with remote access.

Studio, one-, and two-bedroom units feature nine-foot ceilings and high-end finishes including quartz countertops, European-style kitchens, stainless steel appliances, frameless shower enclosures and private patios and balconies. The property was built with energy efficiency in mind, and includes LED lighting and Energy Star appliances throughout. Tenant incentives to encourage the eco-friendly use of bicycles include ample storage and a free onsite repair shop.

“Historically, our name and reputation has been closely associated with the value-add investment space,” said Elie Rieder, CLP founder and CEO. “However, with a brand new, best-in-class asset like Loftin Place, our strategy is to implement CLP’s style of asset management while capitalizing on the core strength of the Palm Beach County market.”  The privately-held, New York-based real estate owner/operator typically repositions properties in their respective submarkets through capital improvements.

CLP’s business plan calls for operational enhancements to increase efficiency, reduce costs and increase NOI, as well as new amenities to enhance the resident experience. This includes preferred parking, a package concierge service and additional storage to meet tenant demand.

Loftin Place is centrally located in a highly desirable community that offers residents a vast array of amenities, many within walking distance. Premier shopping, dining and entertainment destinations including Clematis Street, CityPlace and Waterfront Commons are just minutes away, as are the region’s pristine sand beaches. Nearby medical facilities include Good Samaritan Medical Center, JFK Medical Center’s North Campus and Lake Worth locations, and St. Mary’s Medical Center/Palm Beach Children’s Hospital.

The community also is situated near several of the region’s major transportation arteries, including U.S. Route 1 and Interstate 95, and is adjacent to the free Downtown Trolley line, which provides access to Clematis Street, CityPlace, Kravis Center, the waterfront and the Tri-Rail station.

In addition, Loftin Place is five minutes from the future West Palm Beach station for All Aboard Florida, better known as the Brightline. The $1.5 billion passenger rail project will provide upscale, high-speed service connecting South Florida to Orlando with stops in Miami, Fort Lauderdale and West Palm Beach. According to The Wall Street Journal, Brightline trains are scheduled to begin running between West Palm Beach and Fort Lauderdale later this summer, with the leg to Miami operating in the fall.

The West Palm Beach MSA has experienced 4.1 percent job growth annually for the past two years, with 2.6 percent annual job growth projected through 2019. More than 11,500 jobs were added in 2016, primarily in the areas of financial services, business and professional services, education and health. Loftin Place offers easy accessibility to dynamic employment markets in downtown West Palm Beach, North Palm Beach, Boca Raton, as well as the new Scripps Research Institute in Jupiter.

Rents in the market have increased by an average of 6.5 percent annually since 2014, and long term rent growth remains healthy.  “Having completed the development of this project in late 2015, the previous owner was very successful in the initial lease-up of the property.  We are very excited to build on this momentum, as many of the leases are turning over for the first time, and also capitalize on the strength of the West Palm Beach rental market,” noted Rieder.

“CLP was attracted to the market’s strong fundamentals, which include a diverse local economy, corporate expansion and positive supply/demand dynamics for high-end rental product. We also felt the property had deep intrinsic value, given its attractive pricing on a per unit basis, low in place rents relative to the market, and favorable demographics, including a high concentration of millennial tenants with an average annual income of $135K (an income-to-rent ratio of 6x). These were also key factors in making a decision to move forward with the acquisition.”

“The smoothness of this transaction is a testament to the efforts and professionalism of everyone involved.  This includes the seller, Cypress Real Estate Advisors, their listing broker, Avery Klann of ARA Newmark; our local counsel, David Layman of Greenberg Traurig; and Mitch Clarfield of Berkeley Point Capital.”

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 owns and manages a portfolio comprised of 8,900 units and a value in excess of $1.5 billion.

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