22A — January 15 - 28, 2016 — M id A tlantic

Real Estate Journal


M id A tlantic R eal E state J ournal

UFFERN, NY — Cas- tle Lanterra Properties (CLP) has concluded Poised for continued growth in 2016 Castle Lanterra Properties caps record year in 2015 S the planned restoration and renovation of residences to a level comparable to the newest properties in this market.” New Jersey’s Gold subsequently allocated $3 mil- lion for upgrades, with ribbon cuttings scheduled for later this month for the new leasing office and fitness center. Mid-Atlantic Region

Mission Capital secures favorable terms for rental prop.

the other beneficial owners as economic interest holders only, or be subject to “major action” consent rights of the other ben- eficial owners for issues such as the purchase of additional properties, sale of properties, financing, and bankruptcy. The list of “major actions” can be narrowly or broadly drawn, with the key principle being that as the number of beneficial owners expands, the managers may find themselves spending more and more time driving door-to-door to collect signa- tures from the multiple owners before being able to institute such “major actions.” Family-owned multi-family apartment businesses have infinite potential to be lucrative will drive multi-housing real estate pricing and sales vol- ume to new heights. This will in turn reduce return thresh- olds to record lows. Finally, New York City and Philadel- continued from 19A BALTIMORE, MD — With Baltimore’s downtown popula- tion surging, a historic property that was recently converted to residential use has secured $34.3 million of financing. The Equitable Building, a 223,877 s/f, landmarked office build- ing recently redeveloped into a mixed-use facility with 189 luxury residential units and ground-floor retail — has re- ceived bridge financing from an overseas lender. The loan was arranged by JonathanMore, Ari Hirt, Steven Buchwald and Eugene Shevaldin of national real estate capital advisory firm, Mission Capital Advisors . “We were able to secure very attractive financing and terms for this stunning property, al- lowing ownership to retire the existing capital structure while the property is still ramping up its occupancy,” said More. “We also structured the five-year, non-recourse deal to include an earnout that will provide the sponsor with additional 20% of the project costs will be paid to the customer at the conclusion of the project; after commissioning and final in- spection by PSE&G’s consult- ing engineer. Rachael Fredericks serves as program manager of PSE&G’s 74 million dollar

long-term investments serving as a rewarding career for the day-to-day managing family member(s) and a productive source of passive income for the inactive family members. How- ever, without some prudent succession planning the family business may not be able to survive the growing family tree. The earlier the families are able to formulate a plan for suc- cession of the management of the business, the healthier the future of the business will be. Popowitz is the chair of the Real Estate Practice Group at Brach Eichler L.L.C. in Roseland, NJ and Karni is an associate in the Real Estate Practice Group at Brach Eichler L.L.C. in Roseland, NJ. n phia continue to improve and trade at record pricing, which is helping to drive increased demand in both Northern and Southern New Jersey. Jose Cruz is senior man- aging director at HFF. n Patrick Bunn is a pro- grammanager for Existing Multifamily and Commer- cial Projects at MaGrann Associates. n capital upon the property’s stabilization.” The 10-story property in- cludes 24,800 s/f of retail space, 80% of which is leased to ten- ants including Au Bon Pain and 7-Eleven. Acclaimed as Baltimore’s first skyscraper, the building is superbly located in the heart of the city’s central business district, just steps from the Metro subway, and in prox- imity to the Baltimore Street Light Rail and major roadways. The loan sponsor, a joint venture between JK Equities and SMB Bradley , purchased the Equitable Building in 2013, and began a major redevelop- ment campaign, upgrading many building features while maintaining the structure’s historic charm. The build- ing now has a range of mod- ern amenities including a fitness center with yoga studio and a 24-hour concierge that complement original building elements including arched win- dows and period mosaic tile. n Multi Family Programman- aging projects, managers, forecasting, planning and oversight of consulting en- gineering firms.

a b a n n e r 2015, a year in which the New York- based, pri - vately-owned real estate c o m p a n y a c q u i r e d multifamily

Coast and New York City Most recently, in the fourth quarter of 2015, CLP acquired Alexan CityView, an expan- sive 544-unit waterfront resi- dential community in Bayonne on New Jersey’s Gold Coast. CLP paid $147.5 million for the property and renamed it Harbor Pointe, reflecting its beautiful location,” said Rieder. “We plan additional upgrades to the community’s already strong amenity pack- age.” The acquisition also includes the potential for de- veloping neighboring parcels of land. CLP has been at the fore- front of the economic boom along New Jersey’s Gold Coast, which is the last mas- ter-planned stretch of land in the region. Plans for ad- ditional development, ferry service to New York City, and an ongoing partnership with city administration “is some- thing we’re very proud of,” said Rieder. The past year also saw the sale of Trantor Place Apart- ments, a 177-unit property in the borough of Staten Island, NY. The property was origi- nally acquired in 2011 for $11 million. Following more than $2 million of upgrades, was sold for $17.9 million, a testament to CLP’s value-add strategy, and the team’s expertise in assess- ing and identifying necessary improvements with a financing plan that results in a successful turnaround. “The disposition of Trantor Place is a prime example of our approach and tactics, acquiring undervalued assets and creat- ing a capital improvement plan that will enable us to recapital- ize and reposition quality as- sets,” said Rieder. “We continue to seek such opportunities in markets across the country.” Metropolitan Chicago In the midwest, CLP be- came active in 2014 when it acquired Southgate Apart- ments, the 424-unit commu- nity that the company has since rebranded as Midpointe Apartments. The new name reflects the property’s loca- tion “midway” between urban and suburban Chicago. The acquisition marked the com- pany’s entry into the Chicago marketplace, and CLP has

In Baltimore, CLP complet- ed the acquisition of 222 Sara- toga, which offers 80 luxuri- ous, loft-style apartments in a converted industrial property in a commuter-friendly loca- tion. “With more jobs return- ing to the downtown area, the city has been attracting young professionals seeking flexible urban rentals as a lifestyle choice,” said Rieder. Also in Maryland, CLP ac- quired Watergate Pointe, a 608-unit property in the state capital of Annapolis, for $105 million. Situated on 31 water- front acres, the property offers upside potential in the form of a 45-unit building that has been unoccupied since dam- aged by fire in 2013. More than $12 million is being invested in restoring the building and bringing it back on-line in 2016, and for additional on- site capital improvements. “We are very optimistic about the year ahead and be- yond as we continue to grow our company,” said Rieder. “In 2016, we plan to leverage the past year’s achievements with additional strategic acquisi- tions in these markets and beyond.” CLP Expands Team The year 2015 also included staff growth at CLP. Mike Kim , a 15-year industry vet- eran, joined the company as vice president of investor relations, and Jim Brady was named vice president of property management and op- erations. “Mike and Jim bring a great deal of experience and knowledge to their new roles with the company, and we welcome them as we continue to grow,” said Rieder. Castle Lanterra Proper- ties specializes in identify- ing investment opportunities in multi-family properties. Founded by Elie Rieder, the firm acquires, improves, repo- sitions and manages a port- folio of properties across the Northeast, Mid-Atlantic and Southern U.S., with a proven track record of creating above- market returns for investors. Since its inception in 2009, Castle Lanterra Properties has acquired $850 million of assets comprised of over 3,000 residential units. n

Elie Rieder

residential properties totaling nearly 2,000 units, valued at $330 million. The highlight of the year was the acquisition of the 544-unit Harbor Pointe in Bayonne, on New Jersey’s Gold Coast. The year also marked CLP’s entry into two new markets, Austin, TX and Tuscaloosa, AL. “The past year encompassed consistent growth through strategic acquisitions,” said Elie Rieder, founder and CEO of CLP, “providing the founda- tion for continued expansion in 2016. Our vision for the future is to continue to seek opportunities with outstand- ing rates of return for our investors, while providing ten- ants with a positive quality of life and creating communities that become a strong source of pride for residents and their neighbors.” Expanding into New Regional Markets CLP committedmuch of 2015 to identifying new regions and properties that provided value- add opportunities. The com- pany expanded its geographic footprint with the acquisition of Stonegate Apartments, a 452-unit, class A property in Austin, Texas. “This beautiful, well-located community has proximity to major corpora- tions and businesses, creat- ing an established corporate center while generating strong job growth for residents of the area,” said Rieder. “The unre- alized potential at this 56-acre site includes improvements that will bring Stonegate to a new level of quality. We are planning to modernize the units, upgrade the amenities and improve energy efficiency throughout the property.” In another new region for CLP, the company acquired the Heights at Skyland, a 304-unit community in Tuscaloosa, AL. “This is a growing market that has a need for high-quality, af- fordable housing,” said Rieder. “This also represents a value- added opportunity through

continued from 18A PSE&G’s Residential Multifamily. . .

2015 New Jersey Third Quarter . . .

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