LRE Management, a privately owned national real estate investment manager, has expanded its multifamily portfolio with the $102 million acquisition of three communities with 778 units in the Atlanta metro area.
In addition to the acquisition, LRE Management announced that professional golfer Patrick Cantlay has joined the firm as an adviser and as a general partner in its inaugural fund, LRE Opportunity Fund I. He also becomes a member of the firm’s newly formed advisory board.
“Outside of my focus on professional golf, I have always been interested in real estate investing, particularly multifamily properties given their resiliency throughout the economic cycle and high long-term performance,” said Cantlay. “Having primarily played more of a limited partner role in my existing real estate investments, the timing feels right to take the next step in this parallel career. Eric [Londa] and the broader LRE management team possess a competitive drive and strong mix of real estate investment experience, access to deal flow, and a track record of success that makes them the ideal partner to continue this journey.”
The recent acquisition represents the first investments of the fund, bringing the firm’s national portfolio to 15 multifamily communities with over 4,400 units in seven states.
Built between the early to mid-2000s, the acquired assets include Eastwood Village in Stockbridge, Monterey Village in Jonesboro, and Peachtree Landing in Fairburn. Each property comprises a mix of one-, two-, and three-bedroom apartments as well as a resort-style pool and a fitness center.
Mortgage debt was assumed for the acquisition that carries a 3.84% and is due in two years. According to LRE, it plans to renovate select unit interiors, modernize amenities, and implement its best-in-class operational processes and technology for property and asset management.
“We believe that acquiring 2000s vintage assets in a tier-one market at pre-pandemic pricing and at a significant discount to current replacement cost represents a once-in-a-multidecade investment opportunity,” said Londa, LRE founder and managing partner.
LRE partner Evan Klein noted the firm has developed a strong operational strategy in this area of Atlanta over the years and is confident in its ability to turn operations around in the next 12 to 24 months. He added that ownership and the residents will benefit from the communities’ proximity and the resulting economies of scale.
With multifamily property values down from their peak, according to LRE, it is moving quickly to continue deploying capital in select markets.
“We’ve seen great participation in the fund from our existing investor base, as well as new investors, largely due to our differentiated capabilities, proven track record, and reputation for transparency over 10-plus years,” noted Londa. “Having a permanent capital vehicle in an environment like today is critical to being awarded opportunities, as speed of execution is being carefully considered by sellers.”
