April 17, 2018
LEM Capital closes $12.9 million joint venture transaction in Durham, NC
Philadelphia, PA – LEM Capital, L.P. (“LEM”) has funded a $12.9 million joint venture investment for the acquisition and renovation of Discovery on Broad Apartments (“Discovery on Broad” or the “Property”), a 320-unit garden-style apartment community which was formerly known as Altera North Pointe. Discovery on Broad is located in an infill location in Durham, NC, near major employment centers at Duke University Health System, Duke University and Research Triangle Park. The Property was acquired in a joint venture with a vertically integrated sponsor that focuses on multifamily value-add transactions in major markets across the Southeast and Texas.
The joint venture’s business plan contemplates renovating unit interiors, enhancing amenities by adding grilling stations, a firepit and outdoor entertainment areas and instituting a more professional approach to property management and marketing. The Property was built in 2001 and features two story buildings with a mix of one-, two- and three-bedroom units with direct private entrances. Tenants enjoy easy access to the I-85 and Durham freeways as well as the Durham Belt Line.
“As Downtown Durham has become increasingly vibrant and expensive, young professionals and other tenants seeking value are pushing into nearby markets in their search for high quality affordable apartments that offer direct access to the city’s amenities” said David Lazarus, a partner at LEM. “We are excited by the opportunity to acquire Discovery on Broad with a leading local operator and execute a value-add business plan in a growing submarket.”