November 28, 2017
LEM Capital closes $10.5 million joint venture transaction in Seattle, WA
Philadelphia, PA – LEM Capital, L.P. (“LEM”) has funded a $10.5 million joint venture investment for the acquisition and renovation of Skyline (the “Property”), a 192-unit garden-style apartment community. The Property is located in Kent, a growing suburb of Seattle that is equidistant from the Ports of Seattle and Tacoma and is the region’s warehouse and distribution hub. The Property was acquired in a joint venture with a repeat LEM sponsor that focuses on multifamily value-add transactions in major markets across the Western United States. The sponsor’s value-add business plan includes renovating unit interiors, enhancing exterior curb appeal, remodeling the clubhouse, creating a BBQ and soft seating area, adding a dog park, and instituting a more professional approach to property management and marketing.
Skyline was built in 1984 and features a single two-bedroom, two-bath layout. The Property provides residents with convenient access to the Kent Valley, one of the country’s largest warehouse and distribution hubs with over 104 million square feet of office and industrial space. Skyline is proximate to the Interstate-5 and a stop for the Sound Transit Line, which combine to offer residents multiple ways to directly access the MSA’s largest job hubs including downtown Seattle, Bellevue and the Seattle-Tacoma International Airport (“SeaTac”). Furthermore, as Seattle has become increasingly expensive, business and individuals are moving south and submarkets like Kent are benefiting disproportionately from these dynamics.
“The opportunity to acquire Skyline with a repeat sponsor and execute a value-add program in an MSA with strong demand and growth fundamentals is unique” said Herb Miller, a founding partner at LEM. “LEM’s vertically integrated local operator anticipates upgrading the Property and the tenant base, which should help to generate increases in cash flow and value for our investment partners.”