CHICAGO, IL - Castle Lanterra Properties LLC has recently acquired Southgate Apartments, located in the Mount Greenwood neighborhood of Chicago. The asset was picked up for $28.5 million in an off market transaction that closed in early May.
The urban infill 425 unit property is comprised of eight elevatored buildings built in 1973. The purchase price, which represents a 9% cap rate, includes the assumptions of an existing $17 million Fannie Mae loan that matures in 2021.
Southgate is Castle Lanterra’s first acquisition in the Chicago MSA. The New York based family office, headed by Elie Rieder, plans to improve the property through a $2.6 million capital enhancement program that includes common area and unit upgrades, implementation of a Ratio Utility Billing System (RUBS) and more.
Castle Lanterra Equities was formed in the fall of 2009 for the purpose of investing in real estate opportunities in the United States with a particular focus on the New York Tri-State area. CLE particularly seeks out compelling revenue-producing assets that distinguish themselves by way of superior potential returns, "financeability," reasonable risk profile, and opportunistic exit strategies.
CLE is backed by real estate industry leaders who have created substantial companies that own, upgrade, develop, and manage large projects. As seasoned professionals, the founders have been through several real estate cycles and understand the risks and rewards of the business. They bring to CLE deep institutional relationships and substantial balance sheets that keep the company secure.