Castle Lanterra Multifamily has announced the sale of two communities in Corpus Christi, Texas. The prominent communities, Azure and Baypoint Apartments, were acquired in July 2016 and May 2018, respectively, and underwent capital improvements with a hands-on asset management approach to raise the properties’ values. The sale of Azure achieved an internal rate of return (IRR) of 17.2% and Baypoint 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," says Elie Rieder, founder and CEO of Castle Lanterra. "We feel the timing was ideal to implement our exit strategy following a multiyear hold with significant capital investments in the assets."
Azure is a 220-unit, garden-style community with one-, two-, and three-bedroom units on 9.5 acres. Residents enjoy a business center, a lounge area, a fitness center, a swimming pool, a sand volleyball court, and a dog park, among other amenities. The firm implemented a renovation that included an upscale value-add program on nearly 45% of the units and an investment of more than $700,000 over its hold period in capital expenditures.
With 350 units, Baypoint Apartments is on Oso Bay and offers boat parking, Bayside Sports Courts, a fitness center, and the largest dog park in Corpus Christi. Castle Lanterra Multifamily invested almost $6 million in capital projects, including the dog park, a clubhouse, a waterfront playground, a pet spa, and the enhancement of roughly half of the units.