October 16, 2018
LEM Capital Closes $11.4 Million Joint Venture Transaction in Phoenix, AZ
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.”