Press Release (ePRNews.com) - SAN ANTONIO - May 10, 2017 - Castle Lanterra Properties (CLP) continues to diversify its portfolio with the purchase of Agave, a 349-unit Class-A apartment community located at the doorstep of San Antonio’s CBD. The acquisition marks the investment company’s entry into this dynamic submarket. The seller was Greystar and the Carlyle Group.
Newly constructed in 2016, the energy efficient building at 633 S. Saint Mary’s St. was designed by the renowned architecture firm, Michael Hsu Office of Architecture. This spectacular urban asset with unmatched amenities and rare frontage on the famed San Antonio River Walk is somewhat of a contrast to CLP’s traditional strategy of acquiring and repositioning underperforming multifamily properties.
“San Antonio has emerged as one of the strongest multifamily markets in the country due to its exceptional economic and population growth,” said CLP’s founder and CEO, Elie Rieder. “In Agave, we identified a best-in-class property that fits perfectly with our strategy of complementing our existing value-add portfolio with stable core urban assets in irreplaceable locations. We will continue to pursue opportunities in both asset classes.”
Situated at the crossroads of downtown San Antonio, Southtown and the King William Historic District, Agave’s location is ideal. The King William Historic District serves as San Antonio’s premier arts and cultural district, and Southtown is a rapidly gentrifying neighborhood of historic homes, boutiques, and eclectic bars and restaurants. Residents have walkable access to employment, retail, entertainment and abundant outdoor recreational opportunities, as well as easy access to major highways including I-10 and I-37. A few blocks to the east is Hemisfair Park, a 100-acre urban oasis complete with plazas, courtyards, green space, art and cultural amenities.
Agave boasts unparalleled panoramic views from its rooftop Sky Lounge and a host of ultra-luxury amenities. The five-story mid-rise property offers a mix of studio, one- and two-bedroom units with 40 floor plans that range from a 547-square-foot studio to 1,299-square-foot two-bedroom design. The property also includes an eight-story concrete parking garage.
Among Agave’s unique amenities are a clubhouse with resident lounge, a chef’s kitchen with a dining room for entertaining and a resort-class pool area featuring a palm-shaded courtyard with hammocks, outdoor kitchen and gaming area. The state-of-the-art fitness club is outfitted with cardio and strength training equipment as well as a yoga, Pilates and barre studio. Outstanding interior amenities include 10-foot ceilings, gourmet kitchens with Energy Star appliances, floor-to-ceiling windows, glass walk-in showers and oversized closets. All units are high-speed fiber optic wired and offer abundant storage space.
San Antonio is driven by a diversified local economy, including healthcare, biomedical and biotechnology sectors, military realignment, an emerging energy sector and diversified manufacturing. Companies with nearby corporate headquarters include HEB Grocery and Frost Bank, which will be relocating to a new Class A office tower scheduled for completion in 2018 or 2019. Other major area employers include Joint Base San Antonio, Wells Fargo, USAA, Methodist Hospital and Geekdom, an incubator that anchors the city’s vibrant tech scene.
In addition, Agave is minutes from the University of Texas San Antonio’s downtown campus, as well as San Antonio College, the University of Incarnate Word and Trinity University.
“This is a trophy asset in a metro area that is ranked the sixth fastest growing city in the nation,” said CLP Managing Director Austin Alexander. “Young professionals are not only drawn to San Antonio’s sophisticated urban lifestyle, but also its old-city charm. Rent growth is anticipated to average 3.1 percent annually through 2020, and despite a growing number of apartments coming online, absorption is expected to outpace new unit deliveries. Employers are expected to hire at an accelerated pace in 2017, with 24,100 new jobs, a 2.4% year-over year increase.”
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 over 8,500 units and a value in excess of $1.5 billion.
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