September 25, 2018
LEM Capital Closes $11.4 Million Joint Venture Transaction in Sacramento, CA
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.”