8-time PGA TOUR winner to collaborate with LRE Management on strategic initiatives
Acquisition brings LRE's national portfolio to 15 properties across 7 U.S. states
NEW YORK--(BUSINESS WIRE)--LRE Management ("LRE"), a privately-owned national real estate investment manager for family offices, ultra-high-net-worth investors and small- and mid-size institutions, today announced two new milestones for the firm.
Patrick Cantlay, a top 10 world ranked professional golfer who competes on the PGA TOUR, joins LRE's inaugural LRE Opportunity Fund I ("the Fund") as an investor and General Partner, and becomes a member of the company's newly formed advisory board. In conjunction, LRE confirmed the acquisition of a 778-unit, three-property multifamily portfolio located in Atlanta, GA. The three properties, all built in the early- to mid-2000s, comprise Eastwood Village in Stockbridge ("Eastwood"); Monterey Village in Jonesboro ("Monterey"); and Peachtree Landing in Fairburn ("Peachtree"). Together, they represent the first investments of the Fund.
"Outside of my focus on professional golf, I have always been interested in real estate investing, particularly multifamily properties given their resiliency throughout the economic cycle and high long-term performance," said Cantlay. "Having primarily played more of an LP role in my existing real estate investments, the timing feels right to take the next step in this parallel career. Eric and the broader LRE management team possess a competitive drive and strong mix of real estate investment experience, access to deal flow, and a track record of success that makes them the ideal partner to continue this journey."
"Patrick has demonstrated a serious commitment to actively participating in our business. His fresh insights, genuine enthusiasm, and competitive spirit will absolutely be accretive to LRE as we continue to scale and grow the platform," said Eric Londa, Founder and Managing Partner of LRE Management. "Regarding the purchase of this three-asset portfolio, we believe that acquiring 2000s vintage assets in a tier-one market at pre-pandemic pricing and at a significant discount to current replacement cost represents a once-in-a-multi-decade investment opportunity."
Mortgage debt was assumed for the purchase that carries an interest rate of 3.84% and is due in two years. Eastwood, Monterey and Peachtree together comprise 778 units and sit in the heart of Atlanta's rapidly growing industrial corridor. Each property features a mix of one-, two- and three-bedroom apartments, as well as a resort-style pool and fitness center. LRE plans to renovate select unit interiors, modernize amenities, and implement the firm's best-in-class operational processes and technology for property and asset management.
With multifamily property values in March 2024 down by approximately 20 percent from their peak in June 2022, as reported by Costar, LRE is moving quickly to deploy capital in select markets across the U.S. LRE now owns 15 apartment communities comprising 4,400-plus units across seven states.
"We've seen great participation in the Fund from our existing investor base, as well as new investors, largely due to our differentiated capabilities, proven track record, and reputation for transparency over 10-plus years. The Fund remains open and offers new investors immediate exposure to its existing assets," added Londa. "Having a permanent capital vehicle in an environment like today is critical to being awarded opportunities, as speed of execution is being carefully considered by sellers."
"LRE has developed a strong operational strategy in this pocket of Atlanta over the years, and we are confident in our ability to turn operations around over the next 12-24 months," said Evan Klein, a Partner at LRE. "Both ownership and the community's residents will benefit from the proximity of the communities and the resulting economies of scale."
Per the U.S. Census Bureau, the Atlanta metropolitan statistical area is the sixth-largest and third-fastest growing region in the country, adding nearly one million new residents since 2010. Year-over-year household incomes across Fairburn, Jonesboro, and Stockbridge also grew by 17.1% on average, according to the Bureau's most recent data release.
About LRE Management LLC
LRE Management is a leading real estate investment company with a focus on repositioning and renovating institutional-grade multifamily properties in the Sun Belt and Midwest regions. Since its founding in 2012, LRE has acquired over 6,600 units across 10 states, with transactions totaling in excess of $1 billion. LRE's goal is to deliver consistent risk adjusted returns to its investors through all economic cycles. The firm employs a disciplined approach to asset selection, intensive asset management and property operations while working to improve communities for its residents. To learn more please visit lremanagementllc.com and follow us on LinkedIn.
Contacts
Media
For LRE Management
Justin Lacy | Marketing and Investor Relations
justin@lremanagementllc.com
For Patrick Cantlay
Aidan O'Connor, Prosek Partners
pro-klover@prosek.com