July 22, 2014
LEM Capital Closes $11.1 Million Joint Venture Transaction in Houston, Texas
Philadelphia, PA – LEM Capital, L.P. (“LEM”), a real estate fund manager with more than $690 million of committed capital, has funded an $11.1 million joint venture investment for the acquisition and upgrade of two apartment complexes in Houston, Texas. The venture acquired Champions Centre, a 192-unit multifamily property, and Champions Park, a 246-unit multifamily property, both of which are located in the vibrant Champions submarket of Houston. The value-add business plan focuses on upgrading unit interiors, improving amenities, refurbishing exteriors and roofs and providing additional amenities to tenants including dog yards and valet trash.
Champions Park was built in 1991, and Champions Centre was built in 1994. The properties feature a mix of one and two bedroom units, all with patios and full size washer/dryers, as well as comprehensive amenity packages which include clubhouses with business centers, fitness centers, pools with BBQ areas and outdoor kitchens. Both properties are well located in the Champions West submarket, less than 20 miles northwest of downtown Houston, less than 10 miles west of the Greenspoint Business District, and 15 miles southwest of The Woodlands, with convenient access to major employment centers, medical care facilities, lifestyle conveniences, and major highways. Major employers in the Champions submarket include HP (8,500 employees), Noble Energy (consolidating 2,000 employees to the submarket), the Methodist Willowbrook Hospital, Lone Star College, Willowbrook Mall, and the Vintage Park retail/office area. LEM’s operating partner in the transaction is an experienced multifamily owner with an established local presence in the Houston metro area. This will be LEM’s first joint venture with this sponsor.
“The Champions Portfolio represents an opportunity to bring two well-located properties in line with other recently renovated properties in a strong submarket,” said Herb Miller, partner at LEM. “Improvements to the properties’ interiors and amenities should drive increases in cash flow and create value for our investors.”