AUSTIN--Castle Lanterra Properties (CLP) has entered the Austin market with its acquisition of Stonegate Apartments, a 452-unit class A property. The property was purchased from an institutional ownership group.

“Stonegate is a beautiful, well-located property near major employers in a city that continues to attract corporate relocations and job growth,” said Elie Rieder, founder of the New York-based CLP, in a release. “We believe there is unrealized potential at this 56-acre property, and we see opportunity to take it to the next level.”

“We were attracted by Stonegate's large amenity space and the opportunity to give the clubhouse a facelift and double the size of the fitness center,” said Rieder.

CLP has earmarked more than $1 million for deferred maintenance and common-area renovations.

Constructed in 2003 and located off I-35, Stonegate consists of 24 two- and three-story buildings with units in a variety of modern floor plans, many with vaulted 13-foot ceilings and balconies or patios. Attached garages and carports provide covered parking for over half of the units. Residents enjoy access to an expansive clubhouse that includes the leasing office, business center, fitness center and recreation room.  The property also features two large swimming pools and barbeque grilling stations.

The unit upgrades will include everything from new lighting and plumbing fixtures to new stainless steel appliances and wood vinyl plank flooring.

“We plan to modernize the units as well as all of the community amenities, bringing them up to current class A standards,” says Austin Alexander, managing director for CLP. “We will also be improving the energy efficiency of the property with LED lighting throughout, and we are planning to add some new features to the property such as a dog park and private yards for select ground-floor units, which are desirable amenities in this pet-friendly city.

“With strong population and rent growth in the Austin market, we can achieve good returns on an as-is basis,” he said. “When the upgrades are completed, we are confident that this property will continue to compete well and outperform the overall market.”