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LEM Capital closes $11.4 million joint venture transaction in Phoenix, AZ

Philadelphia, PA – LEM Capital, L.P. (“LEM”) has funded an $11.4 million joint venture investment for the acquisition and renovation of Siena on Baseline Apartments (“Siena” or the “Property”), a 352-unit garden-style apartment community in Phoenix, AZ. The Property, which will be rebranded Cordoba Apartments, is located in the South Phoenix submarket and benefits from the area’s access to major job drivers, freeways and lifestyle amenities. The Property was acquired in a joint venture with a repeat LEM operating partner that focuses on multifamily value-add transactions in major markets across Arizona and Texas. The joint venture’s value-add business plan contemplates management improvements, rebranding the Property, physical upgrades to unit interiors, enhancing the fitness center, leasing office and pool area, and improving curb appeal.

The Property was built in 1986 and features a mix of one, two- and three-bedroom apartment homes. Situated only five miles from North Tempe, 11 miles from Downtown Phoenix and 8 miles from Chandler, the Property provides residents with easy commuter access to the I-10, Route 60 and Route 101. The Property’s location on Baseline Road, a major east/west thoroughfare, also provides drive-by visibility to approximately 50,000 vehicles per day. In addition to The Property’s convenient location for working residents, the surrounding area is abundant with retail and lifestyle amenities, including South Mountain Park, the nation’s largest municipal park with over 51 miles of hiking trails. The Property’s proximity to ASU, several major employment hubs and retail and outdoor amenities combine to make its location attractive to prospective tenants.

“We are excited to close on our first investment in Phoenix with a long-standing partner,” said David Lazarus, a partner at LEM. “We believe the market’s affordability, strong population growth, and diversifying economy should support continued rent growth and the ability to create value and cash flow for our investors by executing our business plan.”

LEM Capital closes $11.4 million joint venture transaction in Sacramento, CA

Philadelphia, PA – LEM Capital, L.P. (“LEM”) has funded an $11.4 million joint venture investment for the acquisition and renovation of Portofino on the Lake (“Portofino” or the “Property”), a 200-unit garden-style apartment community in Sacramento, CA. The Property, which will be rebranded as the Vue on the Lake, features a quiet and unique setting situated on a 60-acre lake located in the “Pocket” neighborhood, a mature residential submarket with strong incomes, high home prices and many long-term residents just south of downtown Sacramento.  The submarket contains limited apartment product and high barriers to entry due to the lack of available land, high construction costs and rigid planning guidelines.  The Property’s location provides easy access to the I-5, a major north-south highway that links residents to Sacramento’s major employment centers including downtown, the airport, UC Davis, the Highway 50 corridor and McClellan Business Park. Sacramento’s job base is growing, driven by employment opportunities in education and health services, government and professional and business services.

The Property was acquired from a local owner-operator who managed the property primarily for cash flow and high occupancy. The Vue offers physical and management upside through upgrading unit interiors, exteriors, landscaping and amenities as well as instituting more professional management practices and a comprehensive rebranding.  On a post-renovated basis, the Property should attract residents looking for lakefront living and access to high quality amenities with high quality interior finishes at a discount to other newer vintage apartments.

“We are very excited about the opportunity to acquire a well-built property in one of Sacramento’s most desirable neighborhoods,” said Herb Miller, a partner at LEM. “Our renovations are targeted to create value for our investors by providing tenants outstanding customer service, modern finishes and unique amenities at an affordable price point.”

LEM Capital closes $9.3 million joint venture transaction in Houston, TX

Philadelphia, PA – LEM Capital, L.P. (“LEM”) has funded a $9.3 million joint venture investment for the acquisition and renovation of The Carlton at River Oaks (the “Carlton” or “Property”), a 222-unit garden-style apartment community. The Property is in the River Oaks neighborhood of central Houston, one of the most desirable and affluent neighborhoods in the city due to its location within the I-610 Loop, proximity to the city’s major employment hubs, excellent schools, luxury retail centers, golf courses and parks, and high-end residential housing. Nearby retail and lifestyle amenities include the Houston Galleria Mall, which contains over two million square feet of upscale retail space as well as multiple hotels, office buildings and entertainment facilities.  LEM’s joint venture partner is a vertically integrated owner-manager with extensive experience executing value-add business plans in Texas.

The Property was acquired from a local owner-builder with a reputation for building high-quality apartments in prime locations.  The Carlton represented an opportunity to improve management practices and modernize dated amenities and interior finishes to create an apartment community that will deliver a unique low-density rental option to potential renters.

“We are very excited about the opportunity to acquire a well-built property in one of Houston’s most prestigious neighborhoods,” said David Lazarus, a partner at LEM. “The Property offers a unique setting for tenants looking for low density luxury housing at a more affordable price point.”

LEM Capital closes $6.7 million joint venture transaction in Chattanooga, TN

Philadelphia, PA – LEM Capital, L.P. (“LEM”) has funded a $6.7 million joint venture investment for the acquisition and renovation of Ridgemont Apartments (“Ridgemont” or the “Property”), a 226-unit garden-style apartment community in Chattanooga, TN. The Property is located in the desirable Northshore submarket and benefits from the area’s strong demographics, diverse economy and vibrant retail and lifestyle amenities. The Property was acquired in a joint venture with a repeat LEM partner that focuses on multifamily value-add transactions in major markets across the Midwest and Southeast. The joint venture’s value-add business plan contemplates management improvements and physical upgrades to unit interiors, enhancing the fitness center and pool area and improving curb appeal.

Ridgemont was built in 1988 and features a mix of one-bedroom and two-bedroom apartment homes. Situated only two miles from Downtown Chattanooga, the Property is commutable to the city’s largest employers. The Property is 1.5 miles from the Chattanooga’s only Whole Foods and its most vibrant retail corridor and 2.5 miles from the rapidly expanding University of Tennessee at Chattanooga. The property will be rebranded as Ridgemont at Stringer’s Ridge to promote the direct access tenants enjoy to Stringer’s Ridge Park, a landmark 92-acre nature preserve with trails for hiking, running and biking with views of the Northshore and Downtown Chattanooga that borders the Property to the east and south. Ridgemont’s proximity to employers, retail and outdoor amenities and the CBD combine to make its location attractive to Chattanooga’s young and lifestyle-oriented tenant base.

“We are excited about the opportunity to acquire a well-built property in one of Chattanooga’s most desirable submarkets,” said David Lazarus, a partner at LEM. “The Property is poised to benefit from momentum in the Northshore submarket, with the potential to drive operations through physical upgrades of unit interiors and amenities and create value for our investors.”

CBRE Multifamily Research takes a look at the U.S. Population by Generation and the specific impacts of the younger Millennial and Generation Z cohorts on multifamily demand.

Philadelphia, PA – LEM Capital, L.P. (“LEM”) has funded a $13.2 million joint venture investment for the acquisition and renovation of Lodge at Baybrook (“Lodge” or the “Property”), a 322-unit garden-style apartment community. The Property is centrally located in the Clear Lake/NASA submarket of Houston and benefits from the area’s strong demographics, diverse economy, and highly sought-after public schools. The Property was acquired in a joint venture with a repeat LEM partner that focuses on multifamily value-add transactions in major markets across Texas. The joint venture’s value-add business plan contemplates management improvements and physical upgrades to unit interiors, enhancing the exterior curb appeal, remodeling the clubhouse and fitness center, and expanding existing amenity spaces.

Lodge was built in 1999 and features a mix of one-bedroom and two-bedroom apartment homes. Situated less than a half mile from I-45, the Property’s location provides easy accessibility to regional employment centers comprised of industries in healthcare, aerospace, petrochemicals, engineering, and logistics. The Property is adjacent to the recently expanded and renovated Baybrook Mall, across the street from a new Lifetime Fitness currently under construction, and surrounded to the south by land that is being master planned to include a variety of complementary uses. Lodge also provides short commutes to the Port of Houston and the beaches, shops, and hotels in Galveston along the Gulf Coast. The wealth of employment centers, retail, and lifestyle amenities proximate to the Property make it an attractive location for prospective tenants.

“We are very excited about the opportunity to acquire a well-built property in a fast-growing submarket of Houston,” said David Lazarus, a partner at LEM. “The Property is poised to benefit from the momentum in the Baybrook submarket, with the potential to generate value through physical upgrades of unit interiors and amenities that are intended to create a high-quality living experience for tenants at an affordable price point.”

Harvard Joint Center for Housing Studies recently released their 2018 “State of the Nation’s Housing” report. In the 30th anniversary report, many of the main barriers to home ownership persist three decades later.

Philadelphia, PA – LEM Capital, L.P. (“LEM”) has funded a $16.3 million joint venture investment for the acquisition and renovation of Verona at Boynton Beach (“Verona” or the “Property”), a 216-unit garden-style apartment community which was formerly known as Aventine at Boynton Beach. Situated less than a half mile from I-95, the Property provides easy accessibility to major employment hubs in the surrounding cities of West Palm Beach, Boca Raton and Pompano Beach. The Property was acquired in a joint venture with a repeat LEM operating partner that focuses on multifamily value-add transactions in major markets across Florida. The joint venture’s value-add business plan contemplates physical upgrades to unit interiors, enhancing the exterior curb appeal, remodeling the clubhouse and fitness center, and creating new amenity spaces. The interior finishes are original across the Property, creating the opportunity to fully upgrade units with contemporary layouts and finish levels similar to newly built apartments, but at a lower price point.

Verona was built in 2002 and features concrete block construction, open floorplans and 9-foot ceilings with crown molding, which distinguishes the property from its competitive set. The Property’s location is close to retail and lifestyle amenities including the high-end shops and restaurants at Renaissance Commons, Boynton Town Center, the future redevelopment of downtown Boynton Beach, and the south Florida beaches, as well as a short drive from the Boynton Beach Tri-Rail station, which should attract residents looking for a high-quality rental and lifestyle experience at a more affordable price point.

“We are very excited about the opportunity to acquire a well-built property in South Florida with the potential to provide tenants a high-quality rental experience,” said Jay Eisner, a founding partner at LEM. “Our business plan includes fully upgrading units to offer contemporary layouts with finishes that could compete with new supply but at a more affordable price point.”

Investment strategies can take many shapes and forms. For us, specializing in Class B multifamily properties has been a success given the current economic climate. Our founding Partner, Jay Eisner, sat down with Steve Lubetkin of Globe St to discuss our investment strategy, how millennials and baby boomers are impacting the market, and why adding amenities like modern fitness centers and clubhouses are driving tenants to Class B properties.  http://bit.ly/2pt6Bpu

Philadelphia, PA – LEM Capital, L.P. (“LEM”) has funded a $12.9 million joint venture investment for the acquisition and renovation of Discovery on Broad Apartments (“Discovery on Broad” or the “Property”), a 320-unit garden-style apartment community which was formerly known as Altera North Pointe. Discovery on Broad is located in an infill location in Durham, NC, near major employment centers at Duke University Health System, Duke University and Research Triangle Park. The Property was acquired in a joint venture with a vertically integrated sponsor that focuses on multifamily value-add transactions in major markets across the Southeast and Texas.

The joint venture’s business plan contemplates renovating unit interiors, enhancing amenities by adding grilling stations, a firepit and outdoor entertainment areas and instituting a more professional approach to property management and marketing.  The Property was built in 2001 and features two story buildings with a mix of one-, two- and three-bedroom units with direct private entrances. Tenants enjoy easy access to the I-85 and Durham freeways as well as the Durham Belt Line.

“As Downtown Durham has become increasingly vibrant and expensive, young professionals and other tenants seeking value are pushing into nearby markets in their search for high quality affordable apartments that offer direct access to the city’s amenities” said David Lazarus, a partner at LEM. “We are excited by the opportunity to acquire Discovery on Broad with a leading local operator and execute a value-add business plan in a growing submarket.”