August 20, 2018
LEM Capital Closes $6.7 Million Joint Venture Transaction in Chattanooga, TN
LEM Capital closes $6.7 million joint venture transaction in Chattanooga, TN
Philadelphia, PA – LEM Capital, L.P. (“LEM”) has funded a $6.7 million joint venture investment for the acquisition and renovation of Ridgemont Apartments (“Ridgemont” or the “Property”), a 226-unit garden-style apartment community in Chattanooga, TN. The Property is located in the desirable Northshore submarket and benefits from the area’s strong demographics, diverse economy and vibrant retail and lifestyle amenities. The Property was acquired in a joint venture with a repeat LEM partner that focuses on multifamily value-add transactions in major markets across the Midwest and Southeast. The joint venture’s value-add business plan contemplates management improvements and physical upgrades to unit interiors, enhancing the fitness center and pool area and improving curb appeal.
Ridgemont was built in 1988 and features a mix of one-bedroom and two-bedroom apartment homes. Situated only two miles from Downtown Chattanooga, the Property is commutable to the city’s largest employers. The Property is 1.5 miles from the Chattanooga’s only Whole Foods and its most vibrant retail corridor and 2.5 miles from the rapidly expanding University of Tennessee at Chattanooga. The property will be rebranded as Ridgemont at Stringer’s Ridge to promote the direct access tenants enjoy to Stringer’s Ridge Park, a landmark 92-acre nature preserve with trails for hiking, running and biking with views of the Northshore and Downtown Chattanooga that borders the Property to the east and south. Ridgemont’s proximity to employers, retail and outdoor amenities and the CBD combine to make its location attractive to Chattanooga’s young and lifestyle-oriented tenant base.
“We are excited about the opportunity to acquire a well-built property in one of Chattanooga’s most desirable submarkets,” said David Lazarus, a partner at LEM. “The Property is poised to benefit from momentum in the Northshore submarket, with the potential to drive operations through physical upgrades of unit interiors and amenities and create value for our investors.”