January 27, 2023
LEM Capital Announces 2022 Year in Review and 2023 Value-Add Multifamily Transaction Goals
Philadelphia, PA – LEM Capital, L.P. (“LEM” or the “Firm”) today announced the achievement of several milestones in 2022 and its transaction objectives for 2023.
• Celebrated 20 years of operation
• $1.1 billion+ in total transaction volume
• 14 property sales totaling 3,400 units
• 4 property acquisitions totaling 840 units
• $125.0 million of debt proactively refinanced
• Transacted with one new third-party Operating Partner
• Added one new submarket to portfolio
• $450.9 million raised in latest fund (30% deployed)1
• Acquire $650 million+2 of value-add multifamily properties (8-10) properties
• Sell 4-6 properties
• 14 property sales totaling 3,400 units
• Continue focus on primary suburban markets on the East and West coasts, major Sun Belt markets, including the four major cities in Texas, and Nashville, Chicago, Minneapolis, Phoenix and Denver
• Add 2-4 new third-party Operating Partners
In 2022, the Firm celebrated its 20th year of operation. “We’ve built a strong multifamily real estate investment platform over the last two decades, and we’re thrilled to celebrate 20 years of delivering attractive risk-adjusted returns to our investors,” said Jay Eisner, Co-Founder and Managing Partner. “Last year we closed fundraising for our sixth and largest multifamily value-add fund to date, hitting our hard cap with equity commitments totaling just over $450 million, which we believe was made possible by our track record and institutional experience.”
Sales and Acquisitions
LEM Capital generated over $1.1 billion in total transaction volume between its sales and acquisitions activity in 2022. “We were deliberately net sellers coming into 2022 and, as a result, had a record year on the sales front,” said Greg Biester, Partner and Co-Head of Investments. “Multifamily transaction volume was strong in the first half of the year, and we strategically took advantage of that strong seller’s market to execute 14 property sales valued at over $925 million.”
The Firm also added over $231 million in real estate to its portfolio in 2022 with the acquisition of four new properties. “We were active yet selective market participants last year,” said Allison Bradshaw, Partner and Co-Head of Investments. “In the shifting capital markets environment, we maintained our focused, disciplined approach to investing, and looking to this year, we have a significant amount of dry powder to deploy and are eager to find interesting investment opportunities. We bring both our value-add expertise as well as a strong background in structuring that may help with deals facing operational or capital stack issues.”
LEM’s value-add multifamily investment program targets equity investments ranging between $10 million and $35 million per property, with total capitalizations ranging from $35 million to $90 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 work closely with our Operating Partners to help them source and win deals and then work side by side to develop and implement business plans that seek to create value over our typical 4-5-year hold periods,” said Herb Miller, a Co-Founder and Managing Partner. 2022’s results bring LEM’s total volume of multifamily value-add transactions since the start of its multifamily value-add strategy in 2011 to 110 properties acquired and 86 sold.
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 – 1 Includes commitments from GP. 2 Total capitalization. All data as of December 31, 2022 unless otherwise noted. In considering the Firm’s 2023 goals, reader should bear in mind these are hypothetical and are not a guarantee of future results.