January 9, 2017
LEM Capital Closes $13.3 Million Joint Venture Transaction in Chicago, Illinois
Philadelphia, PA – LEM Capital, L.P. (“LEM”) has funded a $13.3 million joint venture investment for the acquisition and renovation of Village Park of Palatine (the “Property”), a 448-unit garden-style apartment community. The Property is located in Palatine, an affluent suburban submarket of Chicago with strong public schools and high barriers to entry with only 389 units built since 1996. The Property was acquired in a joint venture with a locally based, vertically integrated owner-operator that is focused on multifamily value-add transactions in Chicago, the Midwest and San Antonio. The sponsor’s value-add business plan includes renovating unit interiors, curing deferred maintenance, enhancing exterior curb appeal, remodeling the clubhouse and instituting a more professional approach to property management and marketing.
Village Park of Palatine was built in 1977 and features a mix of one, two and three bedroom units. The Property is situated approximately 35 miles northwest of downtown Chicago and 18 miles northwest of Chicago’s O’Hare International Airport. The Property benefits from convenient access to Palatine’s Metra stop and the region’s most important arterial motorways, which provide tenants with manageable commutes to downtown Chicago and suburban employment hubs. Village Park of Palatine is also proximate to downtown Palatine, a walkable and vibrant town center with desirable restaurants, parks and retailers.
“The acquisition of Village Park of Palatine represented the opportunity to acquire a well-located property and institute a comprehensive value-add renovation program” 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 investors.”