January 22, 2019
LEM Capital Closes $49.1 Million Joint Venture Transaction in Sanford, FL
LEM Capital closes $49.1 million joint venture transaction in Sanford, FL
Philadelphia, PA – LEM Capital, L.P. (“LEM”) has closed on a $49.1 million joint venture investment for the acquisition and renovation of Solara (or the “Property”), a 272-unit mid-rise apartment community in Orlando’s Lake Mary submarket, a growing, amenity-rich area north of Orlando that offers prominent access to diverse employment and demand drivers. The Property was acquired off-market with a repeat LEM sponsor at a basis below recent sales and current replacement costs. Our value-add business plan includes physical and management improvements through light unit interior upgrades, amenity enhancements, and instituting more professional and experienced management.
Solara was built in 2014 and features 4-story, elevator serviced buildings with conditioned interior hallway corridors, 9-foot ceilings, and a large, open outdoor amenity space. Situated on the border of Sanford and Lake Mary, the Property offers residents prominent access to I-4 and Route 417, two of the main thoroughfares in Orlando that provide connections to major employment hubs and lifestyle destinations throughout the MSA including: the Maitland office parks totaling over 8.5 million square feet, the downtown Orlando office market totaling over 10.5 million square feet, the Orlando International Airport, the University of Central Florida, and Lake Nona. The submarket is primarily driven by high wage jobs generated from over 9 million SF of office nearby, including 4 million SF of Class A space. Companies are drawn to Lake Mary largely due to the public schools, proximity to lifestyle and retail amenities, affordability, and talent pool to fill positions.1
“We are very excited about the opportunity to acquire a well-built, newer vintage property in one of Orlando’s high-growth submarkets,” said Jay Eisner, a partner at LEM.
1 – Market information on Lake Mary and surrounding Orlando submarkets sourced from the Legends of Lake Mary Offering Memorandum prepared by ARA Newmark, which lists specific supporting sources.