June 21, 2016
LEM Capital Closes $17.6 Million Joint Venture Transaction in Virginia
Philadelphia, PA – LEM Capital, L.P. (“LEM”), has funded a $17.6 million joint venture portfolio investment for the acquisition and renovation of the following properties (together, the “Portfolio”):
- Chesapeake Bay, a 300-unit property in Newport News, Virginia
- Hanover Crossing, a 220-unit property in Richmond, Virginia
- Wilde Lake, a 190-unit property in Richmond, Virginia
The Portfolio was acquired in partnership with an experienced and vertically integrated local operator that has a professional management platform in each of the property’s submarkets. The sponsor’s value-add business plans include modernizing and transforming the clubhouses, improving property exteriors, enhancing curb appeal and renovating unit interiors. The sponsor also plans to institute professional management practices and a more sophisticated approach to marketing.
Chesapeake Bay, Hanover Crossing and Wilde Lake are garden style properties built in 1986, 1987 and 1989, respectively. Each property features a mix of unit types with washer/dryers, patios/balconies and open floor plans. Chesapeake Bay is located within Newport News’ primary retail corridor and adjacent to City Center at Oyster Point, the MSA’s office hub. Hanover Crossing is located approximately 10 miles north of Richmond in an affluent suburban submarket with top-rated public schools and high barriers to entry. Wilde Lake is located approximately 17 miles northwest of Richmond in the West End submarket, which features high-end retail, well-known restaurants and highly-ranked public schools. Wilde Lake is adjacent to the Short Pump Town Center, the region’s most dynamic open-air retail and entertainment destination.
“The acquisition of Chesapeake Bay, Hanover Crossing and Wilde Lake represented an opportunity to purchase several high quality assets and implement value-add renovation programs with a best in class local operator” said David Lazarus, a partner at LEM. “Each property has the ability to attract a high quality tenant and should combine with a well-calibrated upgrade program to help generate increases in cash flow and value for our investors.”