August 7, 2018
LEM Capital closes $13.2 million joint venture transaction in Friendswood (Houston), TX
Philadelphia, PA – LEM Capital, L.P. (“LEM”) has funded a $13.2 million joint venture investment for the acquisition and renovation of Lodge at Baybrook (“Lodge” or the “Property”), a 322-unit garden-style apartment community. The Property is centrally located in the Clear Lake/NASA submarket of Houston and benefits from the area’s strong demographics, diverse economy, and highly sought-after public schools. The Property was acquired in a joint venture with a repeat LEM partner that focuses on multifamily value-add transactions in major markets across Texas. The joint venture’s value-add business plan contemplates management improvements and physical upgrades to unit interiors, enhancing the exterior curb appeal, remodeling the clubhouse and fitness center, and expanding existing amenity spaces.
Lodge was built in 1999 and features a mix of one-bedroom and two-bedroom apartment homes. Situated less than a half mile from I-45, the Property’s location provides easy accessibility to regional employment centers comprised of industries in healthcare, aerospace, petrochemicals, engineering, and logistics. The Property is adjacent to the recently expanded and renovated Baybrook Mall, across the street from a new Lifetime Fitness currently under construction, and surrounded to the south by land that is being master planned to include a variety of complementary uses. Lodge also provides short commutes to the Port of Houston and the beaches, shops, and hotels in Galveston along the Gulf Coast. The wealth of employment centers, retail, and lifestyle amenities proximate to the Property make it an attractive location for prospective tenants.
“We are very excited about the opportunity to acquire a well-built property in a fast-growing submarket of Houston,” said David Lazarus, a partner at LEM. “The Property is poised to benefit from the momentum in the Baybrook submarket, with the potential to generate value through physical upgrades of unit interiors and amenities that are intended to create a high-quality living experience for tenants at an affordable price point.”