New York-based real estate investment company Castle Lanterra Properties secured a $35 million mortgage from Fannie Mae to fund its purchase of a 350-unit apartment community in Austin, Texas, Commercial Observer has learned.
JLL brokered the sale and financing of Villas Tech Ridge. The firm’s Jeff Price, a managing director, Scott LaMontagne, a managing director, and David Fersing, a vice president, arranged the sale and Aaron Appel, a managing director, Dustin Dulin, an executive vice president, and Jonathan Schwartz, a senior vice president, worked on the debt, which was provided through Fannie Mae’s delegated underwriting and services. The program allows certain lenders to underwrite and close loans without the agency’s review.
“Debt markets remain liquid, giving borrowers plenty of options,” Mr. Schwartz told CO. “Through the firm’s Fannie Mae DUS lending platform we were able to lock in optimal loan terms with a high amount of closing certainty.”
The specific terms of the deal were not disclosed.
Castle Lanterra scooped up Villas Tech Ridge from Mesirow Financial last month, but the sale price was not immediately available. The property is located at 13838 The Lakes Boulevard in the Austin suburb of Pflugerville and has a mix of one-, two- and three-bedroom apartments, according to the firm’s website. Amenities include a pool, a fire pit, barbeques, a fitness lounge and an on-site pet park.
“This is a very special asset—Class A in every sense,” Elie Rieder, the founder and chief executive officer of Castle Lanterra, said in prepared remarks. “Our due diligence found the property to be impeccably maintained by the previous ownership. Our strategy going forward includes modest capital improvements, including light renovations to the apartments as they turn over and upgrades to the property’s impressive list of amenities.”
The purchase is not Castle Lanterra’s first foray into the Texas market. Last year, the firm bought Stonegate, a 452-unit multifamily community near Downtown Austin. Castle Lanterra currently owns more than 3,000 multifamily units across the country valued at roughly $850 million, according to its website.