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LEM Capital Announces 2023 Team Promotions

Philadelphia, PA – LEM Capital, L.P. (“LEM”) recently announced the promotion of two team members to new positions in the Firm.

Jenil Shah, a member of the Portfolio Management Team who helps oversee the Firm’s portfolio, was promoted to Associate.

Kaderra Robinson, the Firm’s Operations Assistant who helps oversee IT, Investor Relations, and Office Operations, was promoted from part-time to full-time employee.

“We are thrilled to announce that two of our team members were promoted this year. Each one of them tackled additional responsibilities and unique projects, which contributed to the Firm’s productivity in 2023. We are very proud of their accomplishments and look forward to their continued growth as they take on their expanded responsibilities.” said Jennifer Clausen, Partner at LEM.

About LEM Capital

LEM Capital is a real estate private equity firm with a 22-year track record focused on protecting investors’ downside and building portfolios to help deliver dependable current cash flow and equity upside through good and bad cycles.

The team consists of multifamily experts that seek to acquire well-located apartment properties where LEM can add value to help increase rents through physical upgrades and implementation of better management practices. The firm’s approach combines the local, long-term market knowledge and day-to-day management of its network of nationwide operating partners with LEM’s disciplined investment selection, rigorous due diligence process and intensive asset management oversight, all led by the firm’s partners. LEM’s goal is to deliver attractive risk-adjusted returns to its investors while safeguarding capital.

Since 2002, LEM has raised approximately $1.8 billion in investor commitments and invested over $9.1 billion in real estate value contributing to their expertise in structuring, execution and asset management. This includes acquiring over 27,000 value-add apartment units since 2011.

Notes: All data as of December 31, 2023 unless otherwise noted.

LEM Capital Announces 2023 Year in Review and 2024 Value-Add Multifamily Transaction Goals

Philadelphia, PA – LEM Capital, L.P. (“LEM” or the “Firm”) today reflected on a challenging 2023 and announced their 2024 multifamily acquisitions objectives.

“We are optimistic that 2024 should be a more active acquisitions year and feel fortunate to have over $250 million of dry powder to deploy,” said Greg Biester, Partner, and Co-Head of Investments. “Last year, multifamily transaction volume nationwide was down precipitously, driven primarily by the Federal Reserve’s dramatic increases in interest rates which created volatility in the capital markets. We elected to be extremely prudent and center our focus on optimizing property operations while only selectively pursuing sales and acquisitions opportunities.”

In addition to the fluctuations in capital markets, 2023 also brought a major surge in near-term new multifamily supply. This normalized rent growth to more typical levels (3-4%) versus the double-digit growth experienced in the two prior years. “We were active yet patient market participants last year,” said Allison Bradshaw, Partner, and Co-Head of Investments. “Our constant focus on downside protection and our experience up to and through the Great Financial Crisis has influenced our approach to investing, structuring, and operating our multifamily assets. Looking forward, we expect the capital markets should stabilize and we will be selective in seeking compelling, high-quality assets that can offer outsized returns and downside protection.”

LEM’s value-add multifamily investment program targets equity investments ranging between $5 million and $35 million per property, with total capitalizations ranging from $30 million to $100 million. LEM’s value-add business plans typically contemplate upgrades to apartment interiors and common areas with a particular focus on amenities, seeking to provide a ‘like-new’ experience at a moderate price point for the average working-class renter.  “We continue to work closely with our Operating Partners, from deal sourcing to business plan execution while leveraging our over-20 years of experience to help navigate the current market environment effectively,” said Jennifer Clausen, Partner, and Head of Investor Relations.

About LEM Capital

LEM Capital is a real estate private equity firm with a 21-year track record focused on protecting investors’ downside and building portfolios to help deliver dependable current cash flow and equity upside through various market cycles.

The team consists of multifamily experts that seek to acquire well-located apartment properties where LEM can add value to help increase rents through physical upgrades and implementation of better management practices. The firm’s approach combines the local, long-term market knowledge and day-to-day management of its network of nationwide operating partners with LEM’s disciplined investment selection, rigorous due diligence process and intensive asset management oversight, all led by the firm’s partners. LEM’s goal is to deliver attractive risk-adjusted returns to its investors while safeguarding capital.

Since 2002, LEM has raised approximately $1.8 billion in investor commitments and invested over $9.1 billion in real estate contributing to their expertise in structuring, execution and asset management. This includes acquiring over 27,000 value-add apartment units since 2011.

Notes – All data as of December 31, 2023, unless otherwise noted. In considering the Firm’s 2024 goals, reader should bear in mind these are hypothetical and are not a guarantee of future results.

LEM Capital Acquires Austin, TX Property

Philadelphia, PA – LEM Capital, L.P. (“LEM”) has acquired Collier on Swenson Farms (“Collier” or the “Property”), a 336-unit property built in 2008 in Austin, TX. The Property was acquired through a joint-venture partnership with a repeat operating partner with plans to execute a comprehensive value-add business plan.

Collier is located in the Pflugerville / Wells Branch submarket of the MSA, a burgeoning residential pocket proximate to job nodes located in Round Rock, Parmer Austin and The Domain. The surrounding neighborhood has now become a destination for young professionals who desire accessibility to Austin’s job market without the higher rents typically associated with denser, urban locations. Residents at the property benefit from easy access to Downtown Austin via Interstate 35. Austin has been one of the fastest growing MSA’s in the U.S in terms of both population and employment growth over the past decade. Recent corporate expansion announcements should continue to provide momentum in the MSA and create demand for apartment rentals.

Collier enjoys a low-density setting and offers large floorplans and quality amenities such as a swimming pool, fitness center, resident clubhouse and an electronic package locker system. The renovation plans for the Property include enhancing the existing amenity set and renovating apartment interiors with a more modern finish.

“We are very excited about the opportunity to acquire a property in such a dynamic market like Austin,” said Chris Potavin, a Managing Director at LEM. “We believe Austin continues to benefit from positive migration trends as people come for the affordability, high quality of life and robust employment market.”

About LEM Capital

LEM Capital is a real estate private equity firm with a 21-year track record focused on protecting investors’ downside and building portfolios to help deliver dependable current cash flow and equity upside through good and bad cycles.

The team consists of multifamily experts that seek to acquire well-located apartment properties where LEM can add value to help increase rents through physical upgrades and implementation of better management practices. The firm’s approach combines the local, long-term market knowledge and day-to-day management of its network of nationwide operating partners with LEM’s disciplined investment selection, rigorous due diligence process and intensive asset management oversight, all led by the firm’s partners. LEM’s goal is to deliver attractive risk-adjusted returns to its investors while safeguarding capital.

Since 2002, LEM has raised approximately $1.8 billion in investor commitments and invested over $9.1 billion in real estate contributing to their expertise in structuring, execution and asset management. This includes acquiring over 27,000 value-add apartment units since 2011.1

Notes: 1 – As of July 13, 2023

LEM Capital 2nd Annual Charity Golf Benefit Raises $60,000 for Habitat for Humanity Philadelphia

Philadelphia, PA – LEM Capital, L.P. (“LEM”), in collaboration with JLL’s Capital Markets group (“JLL”), hosted its second annual Charity Golf Benefit on Monday, July 24, 2023, at the Philadelphia Country Club. The event, which again benefited Habitat for Humanity Philadelphia (“HFHP”), raised over $60,000. HFHP is an independently chartered affiliate of Habitat for Humanity International, the largest nonprofit homebuilder worldwide. Locally, HFHP’s mission is to transform lives and its neighborhoods by building and repairing homes in partnership with families in need and uniting all Philadelphians around the cause of affordable housing. The HFHP vision is a city where all Philadelphians live in safe, affordable homes.

“We are honored to return for year two of this beautiful event,” said Kathryn Fernandez, Chief Development Officer of Habitat for Humanity Philadelphia. “The incredible generosity of the LEM and JLL teams supports the expansion of core services such as our home repairs program, keeping Philadelphia families in their homes to age with dignity and pass on generational wealth. Thank you for sharing our vision of a world where everyone has a decent place to live.”

The highlight of the event was provided by a Habitat homeowner, a single mother with two daughters working two jobs and sharing a one-bedroom apartment with her daughters. Just last week, she surprised her children after obtaining permanent housing for her family through HFHP’s program. Corinne O’Connell, CEO of Habitat for Humanity Philadelphia, educated the crowd on Habitat’s mission and work, while the homeowner shared her personal experience and journey as a beneficiary of, and now advocate for, the organization’s services.

“We were thrilled to beat our fundraising success of last year’s inaugural event raising more money for and attracting more attention to such a worthwhile local charity and partner. We are very grateful to our sponsors, participants, donors, and all who made this event possible.” said Greg Biester, Partner.

“Our inaugural event was great, but year two was even better!  JLL is once again happy to have partnered with LEM to put on an event for the benefit of Habitat for Humanity.  Helping people find a place to call home and the strength they can draw from it is a noble cause.” said Ryan Ade, Senior Managing Director at JLL.

“The joy and pride of homeownership should be attainable, but today access to safe, clean, affordable housing is a challenge for many people across our country. Habitat is, as they say, ‘Repairing the world, one home at a time’, and we are grateful to be able to support their efforts in providing this much needed resource in our hometown.” said Jennifer Clausen, Partner.

To learn more about Habitat for Humanity Philadelphia’s mission, please visit www.habitatphiladelphia.org.

 

About LEM Capital

LEM Capital is a real estate private equity firm with a 21-year track record focused on protecting investors’ downside and building portfolios to help deliver dependable current cash flow and equity upside through good and bad cycles.

The team consists of multifamily experts that seek to acquire well-located apartment properties where LEM can add value to help increase rents through physical upgrades and implementation of better management practices. The firm’s approach combines the local, long-term market knowledge and day-to-day management of its network of nationwide operating partners with LEM’s disciplined investment selection, rigorous due diligence process and intensive asset management oversight, all led by the firm’s partners. LEM’s goal is to deliver attractive risk-adjusted returns to its investors while safeguarding capital.

Since 2002, LEM has raised approximately $1.8 billion in investor commitments and invested over $9.1 billion in real estate contributing to their expertise in structuring, execution and asset management. This includes acquiring over 27,000 value-add apartment units since 2011.1

About JLL

For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500 company with annual revenue of $20.9 billion and operations in over 80 countries around the world, our more than 103,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com2

Notes: 1 – As of July 13, 2023.  2 – As of August 1, 2023.

LEM Capital Acquires South Florida Property

Philadelphia, PA – LEM Capital, L.P. (“LEM”) has acquired Verona View (the “Property”), a 293-unit multifamily community that was built in 1989. LEM, who intends to rebrand the property “The Atlantic Preserve”, plans to execute a comprehensive value-add business plan that will improve the Property’s exteriors, expand and modernize the amenity set, and improve the existing unit interior finishes.  The Property was acquired in partnership with a repeat, local operating partner.

Located in Plantation, FL, the Property benefits from easy access to many of South Florida’s most prominent retail and employment hubs. Plantation is known for its high household incomes, high-quality single family home communities, and desirable public schools. Tenants at the Property have immediate access to I-595, SR-84, and the Sawgrass Expressway which all allow for a quick commute to some of the MSA’s biggest employment nodes including: The Sunrise/Plantation office market, Miramar/Pembroke Pines, Downtown Ft. Lauderdale, Boca Raton, Cypress Creek and Aventura. South Florida’s diverse economy is anchored by healthcare, E-commerce, telecommunications, and financial services, and has seen robust employment growth over the past decade. Coupled with a lack of land supply and inflated construction costs, multifamily fundamentals are very strong in this market.

Verona View enjoys a low-density setting and offers a wide variety of floorplans and quality amenities.  The Property has two swimming pools, a fitness center, basketball and tennis courts, and a clubhouse. The renovation plans for the Property include enhancing the existing amenity set, improving the building exteriors and property landscaping, rebranding, and renovating apartment interiors to a more contemporary finish level.

“We are very excited about the opportunity to acquire a well-built property in a highly desirable, suburban neighborhood of South Florida,” said Kevin Weidman, a Director at LEM. “Our business plan anticipates heavy improvements to the Property’s unit interiors, exteriors and common areas that should offer tenants a living experience that competes with ‘Class A’ product, but at a substantial discount.”

About LEM Capital

LEM Capital is a real estate private equity firm with a 21-year track record focused on protecting investors’ downside and building portfolios to help deliver dependable current cash flow and equity upside through various cycles.

The team consists of multifamily experts that seek to acquire well-located apartment properties where LEM can add value through physical upgrades and implementation of better management practices. The firm’s approach combines the local, long-term market knowledge and day-to-day management of its network of nationwide operating partners with LEM’s disciplined investment selection, rigorous due diligence process and intensive asset management oversight, all led by the firm’s partners. LEM’s goal is to deliver attractive risk-adjusted returns to its investors while safeguarding capital.

Since 2002, LEM has raised approximately $1.8 billion in investor commitments and invested over $9.1 billion in real estate contributing to their expertise in structuring, execution and asset management. This includes acquiring over 27,000 value-add apartment units since 2011.1

Notes: 1 – As of July 13, 2023.

Looming Multifamily Oversupply Likely Will Be Short-Lived

Many headlines today are alluding to the potential for oversupply in multifamily due to new starts over the next year+. However, many of the projects under construction or in the planning phases may get shelved because the ability to get financing and equity in place is much more difficult in this higher debt cost environment. With an uncertain economic outlook, increased costs of construction and a tight labor market, many groups will likely press the pause button on new starts.

The Surge in Household Growth and What it Suggests About the Future of Housing

As rising interest rates slowed demand for housing in 2022, new data on household growth is helping show how demand has changed since 2019. Various drivers enabled people (largely older millennials) to form new households in 2020 and 2021, including wage hikes, increase in savings from stimulus payments, and a pause in student loan payments.

Rent-to-Income Ratios for Market-Rate Apartments Remain Healthy

Housing affordability in the U.S. has been a growing concern among many over the past few years. While we’ve seen historic rent growth numbers since 2020, wage growth has kept pace with rent increases, keeping rent-to-income ratios generally below the affordability ceiling of 33%.

Harvard JCHS America’s Rental Housing 2022 report

After a year of unprecedented growth in 2021, the housing market has taken a turn. With multiple interest rate hikes, homebuying has become even more unattainable for many due to increased monthly payments. Additionally, for-sale inventory has hit an all-time low, forcing people to rent for longer. While supply (multifamily and single family) is expected to increase with many projects underway, there is still a supply/demand imbalance. Click Here for the Harvard JCHS Americas Rental Housing Report 2022

LEM Capital Announces 2022 Team Promotions

Philadelphia, PA – LEM Capital, L.P. (“LEM”) recently announced the promotion of three team members to new positions in the Firm.

Steven DiLemme, who leads the Accounting Team and has been with the Firm for 10 years, was promoted to Chief Accounting Officer.

Stephen Wetherill, a member of the Acquisitions Team who covers the Atlanta, Boston, Austin, San Antonio and several Midwest multifamily markets, was promoted to Director.

Brian Cohn, a member of the Asset Management Team who helps oversee the Firm’s portfolio, was promoted to Vice President.

“We are excited to announce that three of our team members have been elevated to new positions. Each person has contributed in various ways to the Firm’s productivity over the past year.  We are proud of their accomplishments and also look forward to seeing each team member continue to thrive with their expanded responsibilities.” said Allison Bradshaw, Partner at LEM.

About LEM Capital

LEM Capital is a real estate private equity firm with a 20-year track record focused on protecting investors’ downside and building portfolios to help deliver dependable current cash flow and equity upside through good and bad cycles.

The team consists of multifamily experts that seek to acquire well-located apartment properties where LEM can add value to help increase rents through physical upgrades and implementation of better management practices. The firm’s approach combines the local, long-term market knowledge and day-to-day management of its network of nationwide operating partners with LEM’s disciplined investment selection, rigorous due diligence process and intensive asset management oversight, all led by the firm’s partners. LEM’s goal is to deliver attractive risk-adjusted returns to its investors while safeguarding capital.

Since 2002, LEM has raised approximately $1.8 billion in investor commitments and invested over $8.9 billion in real estate value contributing to their expertise in structuring, execution and asset management. This includes acquiring over 26,000 value-add apartment units since 2011.

Notes: All data as of December 31, 2022 unless otherwise noted.