September 13, 2022
LEM Capital Announces Year to Date Value-Add Multifamily Capital Markets Volume
Philadelphia, PA – LEM Capital, L.P. (“LEM”) today announced $1.0 billion in capital markets activity and other key milestones for the first half of 2022. This includes the closing of their most recent value-add fund, LEM Multifamily Fund VI, LP and the celebration of 20 years in business.
2022 Year to Date Accomplishments1
- • Over $790 million in total transaction volume
- • $221 million in capital commitments raised
- • 8 property sales totaling 2,300 units
- • 3 property acquisitions totaling 640 units
- • Closed 6th commingled private equity fund at $451 million
- • Celebrated 20 years in business
Sales and Acquisitions
“We continue to focus on investing in value-add multifamily properties and creating investment portfolios that seek to generate a combination of current cash flow, downside protection and upside for our investors,” said Allison Bradshaw, Partner and Co-Head of Investments. “In the first half of 2022, we were active buyers and sellers acquiring three properties and selling eight properties for a total of $790 million in deal volume.”
LEM’s value-add multifamily equity program targets equity investments ranging between $10 million and $30 million per property, with total capitalizations ranging from $50 million to $75 million or higher. “Our value-add business plans typically contemplate upgrades to apartment interiors, common areas and a particular focus on the amenities with the goal of providing a ‘like-new’ experience at a moderate price point for the average working-class American renter. We work closely with our operating partners through the bidding and acquisition process to develop and implement business plans that seek to create value over our typical 4- to 5-year hold period,” said Greg Biester, Partner and Co-Head of Investments.
LEM Fund VI, which closed in August, will continue the Firm’s focus of investing in value-add apartment properties located in primary and secondary growth markets across the United States. “Fund VI is our largest fundraise to date,” said Jennifer Clausen, Partner and Head of Investor Relations. “I think the pace at which we raised this Fund is representative of the continued demand for multifamily investments, especially in the current economic environment. Historically, multifamily has proven to be more recession resilient than other asset classes and it provides a hedge against inflation.” To date, the Firm has raised over $1.8 billion in investor commitments.2
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, intensive asset management oversight and national debt and broker relationships. LEM’s goal is to deliver attractive risk-adjusted returns to its investors while safeguarding capital.
Since 2002, LEM has raised almost $1.8 billion in investor commitments2 and has acquired over 26,000 value-add apartment units since 2011.3
Notes: 1 -Represents all capital markets activity year to date through August 16, 2022. 2 – As of August 16, 2022, the date of the final Fund closing. 3 – As of June 2022.