Portfolio substantially comprised of developed lots and related municipal receivables
Castlelake, L.P. (“Castlelake”), a global alternative investment manager with 16 years of experience investing in asset-rich opportunities, today announced it has completed the sale of a portfolio comprised of 2,200 residential lots and municipal receivables in Texas and Tennessee to a prominent investment management firm.
The portfolio consisted of developed single-family detached lots across five residential communities in four of the leading high growth metropolitan areas in the U.S.—Austin, Dallas, Houston and Nashville. The land within the portfolio had been substantially developed with significant infrastructure in place, enabling a faster timeline to residential construction. Additionally, the portfolio included excess land for potential build-to-rent, multifamily and commercial development as well as contractual municipal receivables providing for the reimbursement of remaining project development costs.
“When we acquired the assets in this portfolio, we identified several potential growth drivers including corporate relocations and growing single-family housing demand that have since benefited the assets,” said Evan Carruthers, Managing Partner and Chief Investment Officer of Castlelake. “These growth drivers, coupled with infrastructure investment to position the assets to meet the needs of top homebuilders, has led to meaningful appreciation of the portfolio.”
Castlelake has deep experience and expertise investing and managing real assets across geographies. The firm has acquired more than 30,000 assets across the U.S. since its founding in 2005.
CBRE acted as sole financial and real estate advisor to Castlelake for this transaction.