January 12, 2022
LEM Capital Acquires Dallas, TX Property
Philadelphia, PA – LEM Capital, L.P. (“LEM”) has acquired Archer Medical District (the “Property”), a 2009-vintage, 396-unit apartment community located in the Medical District submarket of Dallas, TX. 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 repeat local operating partner.
Archer Medical District is located within the Southwestern Medical District, a 1,000+ acre medical complex anchored by the region’s three largest hospital systems: UT Southwestern Medical Center, Parkland Health & Hospital System, and Children’s Health. The three hospitals service more than three million patients annually and employ 37,000 individuals. Adjacent to the Medical District are the submarkets of Uptown and Highland Park, both of which boast highly favorable demographics. Furthermore, the Property is located less than three miles from Dallas Love Field Airport, which services more than 40,000 daily passengers and serves as the headquarters for Southwest Airlines.
The Property features a desirable mix of studio, one- and two-bedroom floorplans which should attract a broad base of renters. LEM believes that there is an opportunity to upgrade interior finishes to create best in class units within the submarket that will rent for a significant discount to new construction. The business plan also includes a clubhouse renovation that will reconfigure the layout, relocating and enlarging the fitness center to make better use of the space. Amenity upgrades also include enhancing the two pools with new furniture, grill stations, and pergolas where appropriate. The Property’s tired entrance will be activated through painting the exteriors, enhancing the overall sense of arrival with new branding and signage, and improving landscaping and curb appeal.
“Archer Medical District represents a unique opportunity to acquire an institutionally-maintained Property at an attractive basis with a successful, repeat operating partner,” said Chris Potavin, a Managing Director at LEM. “The Property has significant physical upside and is in a great location that should benefit from the growth of the Medical Center and its proximity to the most affluent areas of the city.”
About LEM Capital
LEM Capital is a real estate private equity firm with a 19-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 $1.5 billion in investor commitments(1) and has acquired over 25,000 value-add apartment units since 2011.(2)
Notes: 1 – As of December 15, 2021. 2 – As of December 16, 2021.