June 27, 2022
LEM Capital Acquires Atlanta, GA Properties
Philadelphia, PA – LEM Capital, L.P. (“LEM”) has acquired a two-property portfolio (the “Portfolio” or “Properties”) in the Atlanta, Georgia MSA. The Portfolio consists of 444 units across two Properties: Five Oaks Apartments and Hawthorne Gates. LEM plans to execute a comprehensive value-add business plan to upgrade the Properties’ interiors, exteriors, and amenities. The Portfolio was acquired in partnership with a repeat operating partner.
Five Oaks is a 280-unit property built in 2005 and Hawthorne Gates is a 164-unit property built in 1996. The locations of the Properties are highly desirable, each offering excellent accessibility to jobs and retail and lifestyle amenities. Five Oaks is located in the Tucker submarket, situated at the intersection of I-285 and Route 78. Given the accessibility from both an infrastructure and location standpoint, the Property is within a 20–30-minute commute to Midtown, Buckhead and Perimeter Center, the MSA’s three largest employment nodes. Hawthorne Gates is located within Perimeter Center, the Southeast’s largest and most dynamic office submarket. Perimeter Center is home to more than 36mm square feet of office and 150,000 jobs. The office node is anchored by one of the most dense concentrations of Fortune 500 headquarters and healthcare systems in the country and includes major employers such as State Farm and Cox Communications.
The Properties feature a desirable mix of one- and two-bedroom floorplans which should attract a broad base of renters. LEM believes that there is an opportunity to upgrade interior finishes creating desirable units which should be comparable to those of newer, wrap-style properties within the submarket, but offered at a more affordable price point. The business plan also includes clubhouse renovations to reconfigure the layouts making better use of the space. Further amenity upgrades include enhancing the pools and fitness centers to bring the facilities up to a more modern standard. The entrances to the Properties will be activated by painting the exteriors, improving the landscaping and enhancing the overall sense of arrival with new branding and signage.
“This Portfolio represents a unique opportunity to acquire two well-located Properties with one of our most successful repeat operating partners,” said Gregory Biester, a Partner at LEM. “The Portfolio has been institutionally owned and managed since development and should benefit greatly from the strong demographic trends in the Atlanta MSA.”
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. LEM’s goal is to deliver attractive risk-adjusted returns to its investors while safeguarding capital.
Since 2002, LEM has raised over $1.7 billion in investor commitments1 and has acquired over 26,000 value-add apartment units since 2011.2
Notes: 1 – As of April 2022. 2 – As of June 2022.