BUFFALO, NY – A joint venture led by Sinatra & Company Real Estate and L5 Investments along with Odyssey Properties Group, Inc. announced it has acquired Castle Point, a 740-unit apartment community in South Bend, IN for $56 million. Pennybacker Credit I, LP provided a preferred equity investment through the FNMA Preferred Equity program. The transaction was brokered by a team from Cushman & Wakefield.
Situated on 51 acres at 18011 Cleveland Road, Castle Point is one of the largest competitive-rate apartment complexes in South Bend. The property comprises 32 two-story apartment buildings, a 25,000-square-foot freestanding amenity center/clubhouse and an 11,000-square-foot freestanding maintenance facility,
“Castle Point is an attractive value-add investment opportunity in which we foresee the ability to leverage our management and development expertise to achieve strong revenue growth in the coming years. The property is well positioned between two thriving demand centers, Notre Dame University and Saint Joseph’s Medical Center, which collectively attract over 14,000 students/residents and employ over 12,000 in full-time staff. We have over $6 million dollars earmarked toward improving both the property and the community for current and potential renters over the next 36 months,” said President of Sinatra & Company Real Estate, Nick Sinatra.
“We are pleased to acquire Castle Point with Sinatra & Company and look forward to a relationship leveraging our expertise together,” said Michael Flaherty, founder and CEO of L5 Investments. “We believe that once this asset experiences the execution of key improvements, it will attract even more tenant interest and raise the bar for apartment product in South Bend.”
Castle Point’s units are spacious, clean and competitively priced. A stand-alone amenity center/club house features a state-of-the-art fitness center including two indoor full court basketball courts, one outdoor full court basketball court, 3 racket ball courts, fitness studio, weight training facility, two outdoor volleyball courts and outdoor swimming pool with large sundeck, as well as a clubroom with kitchen and leasing/management office. Sinatra & Company Real Estate plans to implement a value-add program, including in-unit and common area upgrades with a focus on fitness, athletics and technology.
The accounting and administrative operations of Castle Point Apartments have been transitioned to Sinatra & Company Real Estate’s Buffalo-based property management affiliate, Sinatra & Company Management. Day-to-day leasing activities and property management will remain on site using existing staffing resources.
ABOUT SINATRA & COMPANY REAL ESTATE: Sinatra & Company Real Estate is a vertically integrated real estate investment, development and management firm focused on value-add multifamily acquisitions and development. With approximately 5,650 apartments and nearly 1 million commercial square feet owned and managed in the Western New York, Upstate New York and Chicagoland regions, Sinatra is one of the largest private owner/operators of apartments and commercial properties in the Western New York region. Sinatra & Company Real Estate was founded in 2009 and is headquartered in Buffalo, NY.
ABOUT L5 INVESTMENTS: Founded in 2009, L5 Real Estate Investments, LLC (DBA L5 Investments) is a privately held investment firm focused on value-add, income-producing multifamily properties in emerging U.S. markets. The firm currently has in excess of $430 million of assets totaling 4,600 units under management in seven states. The company targets opportunities that provide high-yield, passive cash flow and long-term capital appreciation for its investors through strategic acquisition, renovation, and superior asset management. L5 and its partners continue to capitalize on opportunities to own multifamily properties in premier locations. These properties generate attractive short-term income and long-term wealth potential. L5’s success and reputation has been built on its track record, conservatism, passion, attention to detail and the belief that trust starts and ends with honesty and integrity.
ODYSSEY PROPERTIES GROUP, INC. Founded in 2004, Odyssey Properties Group, Inc. is a privately held real estate Sponsor that acquires “value-add” multi-family opportunities throughout the U.S. With a $650,000,000 portfolio consisting of approximately 4,600 apartments, 1,200 senior housing units, and 1 million square feet of commercial and industrial spread across 14 states and 31 cities, Odyssey is disciplined in identifying investment opportunities that provide superior, risk adjusted returns to its investors.
PENNYBACKER CAPITAL: Pennybacker Credit I, LP is a credit focused private fund formed to provide stretch senior loans, mezzanine credit, and preferred equity for transitional and value-add real estate assets in the United States, sponsored by Pennybacker Capital Management, LLC. Pennybacker Capital Management, LLC, is a data-driven, operationally intensive real estate investment management firm headquartered in Austin, with offices in Denver and New York.