August 7, 2020

LEM Capital Acquires Tempe, AZ property for $62.5 million

LEM Capital Acquires Tempe, AZ property for $62.5 million

Philadelphia, PA – LEM Capital, L.P. (“LEM”) has acquired Signature Place (or the “Property”), located in Tempe, AZ and built in 1996. The acquisition included 300 units of the 440-unit condominium community. The Property, which was re-branded San Marino, is located in the South Tempe submarket of Phoenix that features significant barriers to entry, a relatively limited apartment stock, and no new supply in the pipeline due to the lack of buildable sites. Residents of San Marino enjoy accessibility to Downtown Phoenix via I-10, a major north-south highway that connects Downtown to Tempe and Chandler, as well as access to Scottsdale and Paradise Valley via the Loop 101. The Property also benefits from proximity to major employment hubs in Downtown Tempe, the Sky Harbor Airport, and Chandler – all within a 10 to 15-minute drive. The Phoenix metro is experiencing robust economic growth and South Tempe’s desirable location proximate to a diverse set of employment nodes allows it to benefit from these dynamics.

San Marino offers residents an idyllic, low-density setting with large floorplans and Class A amenities including two resort-style swimming pools, a fitness center, racquetball court, a lighted tennis court, and outdoor grilling areas. The Property was acquired from a Canadian-based investment group whose business plan was primarily focused on modest improvements to unit interiors, creating the opportunity to enhance the seller’s interior renovations, renovate classic units and significantly improve the Property’s amenities and exteriors through improved landscaping, upgrades to the fitness center, clubhouse and outdoor amenity spaces, rebranding the asset and improving signage. On a post-renovated basis, the Property should attract tenants in the area looking for Class A interiors and amenities at a discount to newer construction.

“We are very excited about the opportunity to acquire a well-built property in a desirable and infill neighborhood with high barriers to entry,” said David Lazarus, a Managing Director at LEM. “The Phoenix MSA has outperformed many other markets during the COVID pandemic and forecasts for continued in-migration and job growth should support demand for high quality housing at a relatively affordable price point.”