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Housing affordability in the U.S. has been a growing concern among many over the past few years. While we’ve seen historic rent growth numbers since 2020, wage growth has kept pace with rent increases, keeping rent-to-income ratios generally below the affordability ceiling of 33%.

After a year of unprecedented growth in 2021, the housing market has taken a turn. With multiple interest rate hikes, homebuying has become even more unattainable for many due to increased monthly payments. Additionally, for-sale inventory has hit an all-time low, forcing people to rent for longer. While supply (multifamily and single family) is expected to increase with many projects underway, there is still a supply/demand imbalance. Click Here for the Harvard JCHS Americas Rental Housing Report 2022

Philadelphia, PA – LEM Capital, L.P. (“LEM”) recently announced the promotion of three team members to new positions in the Firm.

Steven DiLemme, who leads the Accounting Team and has been with the Firm for 10 years, was promoted to Chief Accounting Officer.

Stephen Wetherill, a member of the Acquisitions Team who covers the Atlanta, Boston, Austin, San Antonio and several Midwest multifamily markets, was promoted to Director.

Brian Cohn, a member of the Asset Management Team who helps oversee the Firm’s portfolio, was promoted to Vice President.

“We are excited to announce that three of our team members have been elevated to new positions. Each person has contributed in various ways to the Firm’s productivity over the past year.  We are proud of their accomplishments and also look forward to seeing each team member continue to thrive with their expanded responsibilities.” said Allison Bradshaw, Partner at LEM.

About LEM Capital

LEM Capital is a real estate private equity firm with a 20-year track record focused on protecting investors’ downside and building portfolios to help deliver dependable current cash flow and equity upside through good and bad cycles.

The team consists of multifamily experts that seek to acquire well-located apartment properties where LEM can add value to help increase rents through physical upgrades and implementation of better management practices. The firm’s approach combines the local, long-term market knowledge and day-to-day management of its network of nationwide operating partners with LEM’s disciplined investment selection, rigorous due diligence process and intensive asset management oversight, all led by the firm’s partners. LEM’s goal is to deliver attractive risk-adjusted returns to its investors while safeguarding capital.

Since 2002, LEM has raised approximately $1.8 billion in investor commitments and invested over $8.9 billion in real estate value contributing to their expertise in structuring, execution and asset management. This includes acquiring over 26,000 value-add apartment units since 2011.

Notes: All data as of December 31, 2022 unless otherwise noted.

Philadelphia, PA – LEM Capital, L.P. (“LEM” or the “Firm”) today announced the achievement of several milestones in 2022 and its transaction objectives for 2023.

2022 Accomplishments

• Celebrated 20 years of operation
• $1.1 billion+ in total transaction volume
• 14 property sales totaling 3,400 units
• 4 property acquisitions totaling 840 units
• $125.0 million of debt proactively refinanced
• Transacted with one new third-party Operating Partner
• Added one new submarket to portfolio
• $450.9 million raised in latest fund (30% deployed)¹

2023 Accomplishments

• Acquire $650 million+² of value-add multifamily properties (8-10) properties
• Sell 4-6 properties
• 14 property sales totaling 3,400 units
• Continue focus on primary suburban markets on the East and West coasts, major Sun Belt markets, including the four major cities in Texas, and Nashville, Chicago, Minneapolis, Phoenix and Denver
• Add 2-4 new third-party Operating Partners

In 2022, the Firm celebrated its 20^th year of operation. “We’ve built a strong multifamily real estate investment platform over the last two decades, and we’re thrilled to celebrate 20 years of delivering attractive risk-adjusted returns to our investors,” said Jay Eisner, Co-Founder and Managing Partner. “Last year we closed fundraising for our sixth and largest multifamily value-add fund to date, hitting our hard cap with equity commitments totaling just over $450 million, which we believe was made possible by our track record and institutional experience.”

Sales and Acquisitions

LEM Capital generated over $1.1 billion in total transaction volume between its sales and acquisitions activity in 2022. “We were deliberately net sellers coming into 2022 and, as a result, had a record year on the sales front,” said Greg Biester, Partner and Co-Head of Investments. “Multifamily transaction volume was strong in the first half of the year, and we strategically took advantage of that strong seller’s market to execute 14 property sales valued at over $925 million.”

The Firm also added over $231 million in real estate to its portfolio in 2022 with the acquisition of four new properties. “We were active yet selective market participants last year,” said Allison Bradshaw, Partner and Co-Head of Investments. “In the shifting capital markets environment, we maintained our focused, disciplined approach to investing, and looking to this year, we have a significant amount of dry powder to deploy and are eager to find interesting investment opportunities. We bring both our value-add expertise as well as a strong background in structuring that may help with deals facing operational or capital stack issues.”

LEM’s value-add multifamily investment program targets equity investments ranging between $10 million and $35 million per property, with total capitalizations ranging from $35 million to $90 million. LEM’s value-add business plans typically contemplate upgrades to apartment interiors and common areas with a particular focus on amenities, seeking to provide a ‘like-new’ experience at a moderate price point for the average working-class renter.  “We work closely with our Operating Partners to help them source and win deals and then work side by side to develop and implement business plans that seek to create value over our typical 4-5-year hold periods,” said Herb Miller, a Co-Founder and Managing Partner.  2022’s results bring LEM’s total volume of multifamily value-add transactions since the start of its multifamily value-add strategy in 2011 to 110 properties acquired and 86 sold.

About LEM Capital

LEM Capital is a real estate private equity firm with a 20-year track record focused on protecting investors’ downside and building portfolios to help deliver dependable current cash flow and equity upside through good and bad cycles.

The team consists of multifamily experts that seek to acquire well-located apartment properties where LEM can add value to help increase rents through physical upgrades and implementation of better management practices. The firm’s approach combines the local, long-term market knowledge and day-to-day management of its network of nationwide operating partners with LEM’s disciplined investment selection, rigorous due diligence process and intensive asset management oversight, all led by the firm’s partners. LEM’s goal is to deliver attractive risk-adjusted returns to its investors while safeguarding capital.

Since 2002, LEM has raised approximately $1.8 billion in investor commitments and invested over $8.9 billion in real estate value contributing to their expertise in structuring, execution and asset management. This includes acquiring over 26,000 value-add apartment units since 2011.

Notes –  1 Includes commitments from GP. 2 Total capitalization. All data as of December 31, 2022 unless otherwise noted. In considering the Firm’s 2023 goals, reader should bear in mind these are hypothetical and are not a guarantee of future results.

Philadelphia, PA – LEM Capital, L.P. (“LEM”) has acquired Axiom Apartment Homes (“Axiom” or the “Property”), a 202-unit property built in 1987 in Charlotte, NC. The Property was acquired through a joint-venture partnership with a local repeat operating partner with plans to execute a comprehensive value-add business plan.

Axiom is located in the East Charlotte submarket of the MSA, one of the last affordable residential pockets proximate to the Uptown and University job markets. The submarket has continued to demonstrate strong market fundamentals and the neighborhoods around the Property have become a destination for young professionals who desire accessibility to Charlotte’s job nodes without the higher rents typically associated with denser, urban locations. Residents of the Property can benefit from major infrastructure projects like the Independence Boulevard Freeway project and the continued extension of the CityLYNX Gold Line Streetcar project, which demonstrate the City of Charlotte’s commitment to improve the accessibility of East Charlotte. Construction is underway at the former Eastland Mall site which should create a mixed-use anchor for all of East Charlotte.

Despite its infill location, Axiom enjoys a low-density setting with open floorplans and quality amenities.  The Property has a swimming pool, fitness center, clubhouse, and sport court. The renovation plans for the Property include enhancing the existing amenity set and renovating apartment interiors.

“We are very excited about the opportunity to acquire another property in such a rapidly improving neighborhood that is currently experiencing significant momentum from private and public investment,” said Chris Potavin, a Managing Director at LEM. “Charlotte has a diversified employment base with strong fundamentals and stands to perform as de-urbanization trends continue to drive migration away from larger cities.”

About LEM Capital

LEM Capital is a real estate private equity firm with a 20-year track record focused on protecting investors’ downside and building portfolios to help deliver dependable current cash flow and equity upside through good and bad cycles.

The team consists of multifamily experts that seek to acquire well-located apartment properties where LEM can add value to help increase rents through physical upgrades and implementation of better management practices. The firm’s approach combines the local, long-term market knowledge and day-to-day management of its network of nationwide operating partners with LEM’s disciplined investment selection, rigorous due diligence process and intensive asset management oversight, all led by the firm’s partners. LEM’s goal is to deliver attractive risk-adjusted returns to its investors while safeguarding capital.

Since 2002, LEM has raised approximately $1.8 billion in investor commitments and invested over $8.9 billion in real estate value contributing to their expertise in structuring, execution and asset management. This includes acquiring over 26,000 value-add apartment units since 2011.¹

Notes: 1 – As of November 29, 2022.

Philadelphia, PA – LEM Capital, L.P. (“LEM”) today announced that LEM Multifamily Fund VI (the “Fund”) has held its final close at $450.8 million¹ in equity commitments hitting its hard cap. The Fund will invest in Class B value-add multifamily properties in primary and secondary suburban markets across the United States. Over seventy percent of investors in the Fund were repeat investors from previous private equity offerings including the three lead investors. “We believe our investors appreciate that we raise deliberately smaller funds, which allow us to carefully invest and efficiently harvest our investments,” said Jennifer Clausen, a Partner at LEM. “We are grateful for the continued support of our many repeat investors and for the new relationships we established in this Fund.” To date, the Firm has raised approximately $1.8 billion in investor commitments.¹

The Fund held its first closing in July 2021 and has since acquired six properties located in strong growth markets including Atlanta, Richmond, Sacramento, Dallas and Tucson totaling approximately $129 million in equity.² Since starting its multifamily only strategy in 2011, LEM has acquired 109 multifamily properties across 27 markets and has sold 74 of those investments generating consistent returns.³

About LEM Capital

LEM Capital is a real estate private equity firm with a 20-year track record focused on protecting investors’ downside and building portfolios to help deliver dependable current cash flow and equity upside through good and bad cycles.

The team consists of multifamily experts that seek to acquire well-located apartment properties where LEM can add value to help increase rents through physical upgrades and implementation of better management practices. The firm’s approach combines the local, long-term market knowledge and day-to-day management of its network of nationwide operating partners with LEM’s disciplined investment selection, rigorous due diligence process and intensive asset management oversight. LEM’s goal is to deliver attractive risk-adjusted returns to its investors while safeguarding capital.

Since 2002, LEM has raised almost $1.8 billion in investor commitments¹ and has acquired over 26,000 value-add apartment units since 2011.²

Notes: 1 – As of August 16, 2022. 2 – As of June 2022. 3 – As of October 4, 2022.   

Philadelphia, PA – LEM Capital, L.P. (“LEM”) today announced $1.0 billion in capital markets activity and other key milestones for the first half of 2022. This includes the closing of their most recent value-add fund, LEM Multifamily Fund VI, LP and the celebration of 20 years in business.

2022 Year to Date Accomplishments¹

• •  Over $790 million in total transaction volume
• •  $221 million in capital commitments raised
• •  8 property sales totaling 2,300 units
• •  3 property acquisitions totaling 640 units
• •  Closed 6^th commingled private equity fund at $451 million
• •  Celebrated 20 years in business

Sales and Acquisitions

“We continue to focus on investing in value-add multifamily properties and creating investment portfolios that seek to generate a combination of current cash flow, downside protection and upside for our investors,” said Allison Bradshaw, Partner and Co-Head of Investments. “In the first half of 2022, we were active buyers and sellers acquiring three properties and selling eight properties for a total of $790 million in deal volume.”

LEM’s value-add multifamily equity program targets equity investments ranging between $10 million and $30 million per property, with total capitalizations ranging from $50 million to $75 million or higher. “Our value-add business plans typically contemplate upgrades to apartment interiors, common areas and a particular focus on the amenities with the goal of providing a ‘like-new’ experience at a moderate price point for the average working-class American renter. We work closely with our operating partners through the bidding and acquisition process to develop and implement business plans that seek to create value over our typical 4- to 5-year hold period,” said Greg Biester, Partner and Co-Head of Investments.

Fundraising

LEM Fund VI, which closed in August, will continue the Firm’s focus of investing in value-add apartment properties located in primary and secondary growth markets across the United States. “Fund VI is our largest fundraise to date,” said Jennifer Clausen, Partner and Head of Investor Relations. “I think the pace at which we raised this Fund is representative of the continued demand for multifamily investments, especially in the current economic environment. Historically, multifamily has proven to be more recession resilient than other asset classes and it provides a hedge against inflation.” To date, the Firm has raised over $1.8 billion in investor commitments.²

About LEM Capital

LEM Capital is a real estate private equity firm with a 20-year track record focused on protecting investors’ downside and building portfolios to help deliver dependable current cash flow and equity upside through good and bad cycles.

The team consists of multifamily experts that seek to acquire well-located apartment properties where LEM can add value to help increase rents through physical upgrades and implementation of better management practices. The firm’s approach combines the local, long-term market knowledge and day-to-day management of its network of nationwide operating partners with LEM’s disciplined investment selection, rigorous due diligence process, intensive asset management oversight and national debt and broker relationships. LEM’s goal is to deliver attractive risk-adjusted returns to its investors while safeguarding capital.

Since 2002, LEM has raised almost $1.8 billion in investor commitments² and has acquired over 26,000 value-add apartment units since 2011.³

Notes:  1 -Represents all capital markets activity year to date through August 16, 2022. 2 – As of August 16, 2022, the date of the final Fund closing. 3 – As of June 2022.

Philadelphia, PA – LEM Capital, L.P. (“LEM”), in collaboration with JLL Capital Markets (“JLL”), hosted its inaugural Charity Golf Benefit on Monday, July 18, 2022. The event raised over $53,000 for this year’s beneficiary, Habitat for Humanity Philadelphia (“HFHP”), an independently chartered affiliate of Habitat for Humanity International, the largest nonprofit homebuilder worldwide. Locally, HFHP’s mission is to transform lives and its neighborhoods by building and repairing homes in partnership with families in need and uniting all Philadelphians around the cause of affordable housing. The HFHP vision is a city where all Philadelphians live in safe, affordable homes.

The highlight of the event was provided by a Habitat homeowner who obtained permanent housing for her family through HFHP’s program, and by Corinne O’Connell, CEO of Habitat for Humanity Philadelphia. Ms. O’Connell educated the crowd on Habitat’s mission and work, while the homeowner shared her personal experience and journey as a beneficiary of, and now advocate for, the organization’s services.

“Our first charity benefit was a huge success. Being able to donate over $50,000 to Habitat for Humanity Philadelphia is an outcome that far exceeded our original expectations. We are extremely grateful to our sponsors, participants, donors, and all who made this event possible.” said Greg Biester, Partner.

“JLL is proud to partner with our friends at LEM and all of our collective clients to be able to support such a noble cause as Habitat for Humanity.  We hope that this event will become an annual occurrence which we can build out over the years to come.” said Ryan Ade, Senior Managing Director at JLL.

“This is really incredible. We can’t express enough our gratitude for the hard work LEM poured into planning this event. A gift this size can replace roofs for five different families, keeping them safe, warm, and dry. What an incredible gift to be able to have that big a difference on your Philadelphia community,” said Kathryn Fernandez, Chief Development Officer of Habitat for Humanity Philadelphia.

“Access to safe, clean, affordable housing in our country, and especially in Philadelphia, is challenging for many people,” said Jennifer Clausen, Partner, “We are grateful to be able to support Habitat’s efforts to provide this much needed resource in our hometown.”

To learn more about Habitat for Humanity Philadelphia’s mission, please visit www.habitatphiladelphia.org.

 About LEM Capital

LEM Capital is a real estate private equity firm with a 20-year track record focused on protecting investors’ downside and building portfolios to help deliver dependable current cash flow and equity upside through good and bad cycles.

The team consists of multifamily experts that seek to acquire well-located apartment properties where LEM can add value to help increase rents through physical upgrades and implementation of better management practices. The firm’s approach combines the local, long-term market knowledge and day-to-day management of its network of nationwide operating partners with LEM’s disciplined investment selection, rigorous due diligence process and intensive asset management oversight. LEM’s goal is to deliver attractive risk-adjusted returns to its investors while safeguarding capital.

Since 2002, LEM has raised almost $1.8 billion in investor commitments¹ and has acquired over 26,000 value-add apartment units since 2011.²

 About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 102,000 as of June 30, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

 Notes: 1 – As of August 16 2022. 2 – As of June 2022.

Philadelphia, PA – LEM Capital, L.P. (“LEM”) has acquired a two-property portfolio (the “Portfolio” or “Properties”) in the Atlanta, Georgia MSA.  The Portfolio consists of 444 units across two Properties: Five Oaks Apartments and Hawthorne Gates.  LEM plans to execute a comprehensive value-add business plan to upgrade the Properties’ interiors, exteriors, and amenities.  The Portfolio was acquired in partnership with a repeat operating partner.

Five Oaks is a 280-unit property built in 2005 and Hawthorne Gates is a 164-unit property built in 1996. The locations of the Properties are highly desirable, each offering excellent accessibility to jobs and retail and lifestyle amenities.  Five Oaks is located in the Tucker submarket, situated at the intersection of I-285 and Route 78.  Given the accessibility from both an infrastructure and location standpoint, the Property is within a 20–30-minute commute to Midtown, Buckhead and Perimeter Center, the MSA’s three largest employment nodes.  Hawthorne Gates is located within Perimeter Center, the Southeast’s largest and most dynamic office submarket.  Perimeter Center is home to more than 36mm square feet of office and 150,000 jobs.  The office node is anchored by one of the most dense concentrations of Fortune 500 headquarters and healthcare systems in the country and includes major employers such as State Farm and Cox Communications.

The Properties feature a desirable mix of one- and two-bedroom floorplans which should attract a broad base of renters.  LEM believes that there is an opportunity to upgrade interior finishes creating desirable units which should be comparable to those of newer, wrap-style properties within the submarket, but offered at a more affordable price point.  The business plan also includes clubhouse renovations to reconfigure the layouts making better use of the space.  Further amenity upgrades include enhancing the pools and fitness centers to bring the facilities up to a more modern standard.  The entrances to the Properties will be activated by painting the exteriors, improving the landscaping and enhancing the overall sense of arrival with new branding and signage.

“This Portfolio represents a unique opportunity to acquire two well-located Properties with one of our most successful repeat operating partners,” said Gregory Biester, a Partner at LEM.  “The Portfolio has been institutionally owned and managed since development and should benefit greatly from the strong demographic trends in the Atlanta MSA.”

About LEM Capital

LEM Capital is a real estate private equity firm with a 20-year track record focused on protecting investors’ downside and building portfolios to help deliver dependable current cash flow and equity upside through good and bad cycles.

The team consists of multifamily experts that seek to acquire well-located apartment properties where LEM can add value to help increase rents through physical upgrades and implementation of better management practices. The firm’s approach combines the local, long-term market knowledge and day-to-day management of its network of nationwide operating partners with LEM’s disciplined investment selection, rigorous due diligence process and intensive asset management oversight. LEM’s goal is to deliver attractive risk-adjusted returns to its investors while safeguarding capital.

Since 2002, LEM has raised over $1.7 billion in investor commitments¹ and has acquired over 26,000 value-add apartment units since 2011.²

Notes: 1 – As of April 2022. 2 – As of June 2022.

Philadelphia, PA – LEM Capital, L.P. (“LEM”) has acquired Canyon Heights (the “Property”), a 196-unit apartment community located in the Southeast submarket of Tucson that was built in 1982. LEM plans to execute a comprehensive value-add business plan to upgrade the Property’s interiors, exteriors, and amenities. The Property was acquired in partnership with a local operating partner.

The Southeast Tucson submarket is centrally located within in the Tucson MSA and has grown steadily over the past several years. The Property is located just off North Pantano Road and East 5th Street and proximate to the east/west thoroughfares of Speedway Boulevard and Broadway Boulevard, which provides convenient access throughout the greater MSA. The Property is located three miles east of Park Place Mall, a primary retail, entertainment, and dining destination in East Tucson with over 125 stores, including Century Theatres, Dillard’s, Total Wine, Ulta Beauty, and Old Navy. The property is a short drive to the main campus of the University of Arizona which is the largest employer in Tucson with over 15,570 employees.

Canyon Heights features a desirable mix of one and two-bedroom floorplans which should attract a broad base of renters. LEM believes that there is an opportunity to substantially upgrade interiors to create best in class units. The business plan also includes a comprehensive exterior and amenity renovation plan to improve the clubhouse facility and pool area, exterior curb appeal and overall entrance experience, and landscaping throughout the Property.

“Canyon Heights represents a unique opportunity to acquire a well-located Property in a transforming submarket and establish a new operating partner relationship,” said David Lazarus, a Managing Director at LEM. “The Property has significant physical upside, and we believe that it should benefit greatly from the positive demographic trends in the submarket and the Tucson MSA.”

About LEM Capital

LEM Capital is a real estate private equity firm with a 20-year track record focused on protecting investors’ downside and building portfolios to help deliver dependable current cash flow and equity upside through good and bad cycles.

The team consists of multifamily experts that seek to acquire well-located apartment properties where LEM can add value and increase rents through physical upgrades and implementation of better management practices. The firm’s approach combines the local, long-term market knowledge and day-to-day management of its network of local partners with LEM’s disciplined investment selection, rigorous due diligence process and intensive asset management oversight. LEM’s goal is to deliver attractive risk-adjusted returns to its investors while safeguarding capital.

Since 2002, LEM has raised over $1.6 billion in investor commitments¹ and has acquired over 25,000 value-add apartment units since 2011.²

Notes: 1 – As of April 29, 2022. 2 – As of April 26, 2022.