October 6, 2020

LEM Capital Announces Third Quarter Capital Markets Activity


LEM Capital Announces Third Quarter Capital Markets Activity

Philadelphia, PA – LEM Capital, L.P. (“LEM”) today announced the effective disposition of five properties during the third quarter of 2020 with a total sales price of $234 million. These sales are in addition to two dispositions completed in the first half of the year and six completed in 2019. The first sale completed in the third quarter, Vine, a 420-unit property located in Arlington (Dallas), TX, closed in August. The Virginia Portfolio, a three-property 710-unit portfolio located in Richmond and Newport News, VA, sold to a single buyer in mid-September and the most recent disposition was the sale of Atlantic Peachtree Corners, a 420-unit property located in Norcross (Atlanta), GA.

The buyers’ profiles have varied from regional operators to larger institutional owners with a national presence. “The notion of distressed selling or pricing discounts for multifamily properties is not something we have experienced so far,” said Greg Biester, Director and Head of Asset Management for LEM. “On the contrary, we have seen pricing at or above our pre-COVID internal valuations indicating that there continues to be strong demand and meaningful amounts of capital chasing multifamily opportunities especially with the current low interest rate environment, the relative attractiveness and availability of debt, all of which should continue to support the demand for multifamily investments.

Since 2011, LEM has acquired 96 multifamily properties and sold 56 assets, with 6 dispositions taking place post-COVID. Currently, LEM is actively marketing or negotiating the sale of 8 additional properties with more potential sales on the horizon.

“On the acquisition front, in July we acquired a value-add multifamily property in Phoenix. The deal was negotiated off-market after the initial buyer fell out of contract in early April,” said Allison Bradshaw, Managing Director of LEM.  “We have two additional properties currently under control and through Investment Committee, and they are expected to close in October. We are in due diligence on several other properties, as well.“ The LEM team is continuing to actively monitor its target markets and economic conditions, looking for compelling and unique opportunities to add to its portfolio. Recently, LEM temporarily moved a member of its Acquisitions Team to Florida to cover the market while reducing back-and-forth travel from the Philadelphia office.

LEM invests in apartment properties located in primary and secondary suburban markets on the east and west coasts, the four major cities in Texas, Phoenix, Denver, Minneapolis, Chicago, Nashville and other cities on a select basis. “We invest and partner with locally based, best-in-class operating partners, who really have the pulse of the market,” said Jay Eisner, Managing Partner of LEM. “These relationships, which act as an extension of our team, have helped us identify unique investment opportunities in today’s competitive market.”

About LEM Capital

LEM Capital is a real estate private equity firm with an 18-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 and seek to 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 over $1.3 billion in investor commitments and invested over $7.7 billion in real estate contributing to their expertise in structuring, execution and asset management. This includes acquiring over 22,000 value-add apartment units since 2011.1

Notes: 1 – As of July 22, 2020.