February 10, 2020
LEM Capital 2019 Year in Review & 2020 Acquisition Goals
LEM Capital reflects on 2019 year in review and 2020 acquisition goals
Philadelphia, PA – LEM Capital, L.P. (“LEM”) today announced the achievement of several important milestones during 2019. “We continue to focus on generating consistent risk-adjusted returns for our investors by 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 Jay Eisner, a founding partner of LEM. “Last year we were active buyers and sellers with a total transactional volume of over $630 million, which included the acquisition of 12 properties totaling 2,690 units and the sale of 5 properties totaling approximately 1,120 units. In addition, we fully realized one of our value-add multifamily funds,“ said Herb Miller, a founding partner of LEM, “2019’s results bring our total volume of transactions since 2011 to a total of 92 acquisitions and 49 sales.” Since the firm was founded in 2002, LEM has raised over $1.1 billion of committed capital.1
LEM also announced the firm’s 2020 acquisition goals, continuing the firm’s business of partnering with high-quality, local real estate operating companies to acquire value-add multifamily properties. “Our target for 2020 is to acquire approximately $500 million of apartment properties located in primary markets on the east and west coasts, the four major cities in Texas, Nashville, Chicago, Minneapolis, Phoenix, Denver and other cities on a select basis,” said Allison Bradshaw, a managing director of LEM. “In today’s competitive market, we believe the institutional quality of the LEM team, our dedicated focus on multifamily, and the unique way we integrate our expertise and capabilities with our reliable operating partners across the country sets us up for success.”
LEM’s value-add multifamily equity program targets equity investments ranging between $5 million and $20 million per property, with total capitalizations ranging from $20 million to $50 million or higher. “LEM’s 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 5-year hold period,” said David Lazarus, a managing director on the acquisitions team.
In 2019, we both grew the LEM team and acknowledged their hard work. At the start of the year, Allison Bradshaw, a Managing Director on the Acquisitions Team and member of the Senior Leadership Team joined the firm from a national multifamily platform in New York. Sam Ward joined as an Analyst on the Acquisitions Team in May; he was previously working for a regional industrial and multifamily developer. Two members of the team were promoted. Kevin Weidman, a member of the Acquisitions Team was promoted from Associate to Senior Associate. Emily Strickman, previously an Analyst on the Asset Management and Portfolio Management teams, was promoted to Associate and joined the Investor Relations Team while retaining her Portfolio Management responsibilities.
Additionally, in the Summer of 2019, LEM relocated its headquarters, taking new space at 2400 Market Street in Philadelphia. Situated along the Schuylkill River, the existing structure, originally built as a Hudson Motor Car Company plant in the 1920s, was redeveloped into a modern, 600,000 square foot, nine-story building with an emphasis on innovation, sustainability and green space.2 “The new space will provide the team with a modern work environment which should enable us to continue providing investment expertise to our investors,” said Eisner.
1 – As of February 3, 2020.
2 – https://www.aramark.com/about-us/news/aramark-general/new-global-headquarters