January 23, 2020
LEM Capital Acquires Boutique Apartments for $30.1 Million in Phoenix, AZ
LEM Capital acquires boutique Phoenix apartments
Philadelphia, PA – LEM Capital, L.P. (“LEM”) has acquired The Montana (or the “Property), a 134-unit garden-style apartment community built in 1998 and centrally located within the South Phoenix submarket. The Property is located on East Baseline Road – a major east/west thoroughfare between South Phoenix and Tempe. Residents of The Montana enjoy accessibility to Downtown Phoenix via I-10, a major north-south highway that connects Downtown Phoenix to Tempe and Chandler. The Property also benefits from proximity to major employment hubs in Downtown Phoenix, Tempe, the Sky Harbor Airport, and Ahwatukee – all within a 15-minute drive from The Montana.
The Property – LEM’s third investment in Phoenix – was acquired on an off-market basis with a long-time operating partner. The Seller had owned the Property since 2017 and invested minimal capital towards unit interior improvements. LEM’s business plan contemplates upgrading 100% of unit interiors to a high-end renovation level, improving curb appeal with new signage and paint, expanding the fitness center, installing a new dog park, and improving the landscaping throughout the Property to enhance the boutique community feel. The Property should attract the growing number of renters in Phoenix looking for modern apartments with contemporary amenities and finishes at a more affordable price point, without having to sacrifice accessibility to major employment areas.
“In 2018 we entered the Phoenix market because the city had changed from a heavily construction-based economy to one driven by a variety of industries including healthcare, bioscience, education, and manufacturing,” said David Lazarus, a Managing Director at LEM. “Meanwhile, we believe Phoenix continues to be an attractive and affordable place to live.”