April 9, 2013
LEM Capital Closes $6.2 Million Joint Venture Transaction in La Habra, California
LEM Capital, L.P. (“LEM”), a real estate fund manager with more than $590 million of committed capital, has funded a $6.2 million joint venture investment for the acquisition and upgrade of an apartment complex in La Habra, California. The venture acquired Il Pompeii Apartments, a 111 unit multifamily property. Plans are to execute a value-add strategy for the property which will include updating and upgrading the exteriors and amenities and construction of a new fitness as well as interior unit upgrades including new appliances, flooring, fixtures and lighting packages. The property will be rebranded Monterra Springs.
The Monterra Springs complex, which was built in 1969, features a mix of one, two and three bedroom units and a complete package of on-site amenities, including a swimming pool, clubhouse, laundry facilities and three spacious courtyards. The Property is well located in Orange County, near the border of Los Angeles County, and provides convenient access to major employment centers throughout the region. The property fronts Beach Boulevard, a major North/South thoroughfare and is located adjacent to the submarket’s primary retail center which contains over 1.1 million square feet of quality big box and convenience store space. A repeat LEM client, LEM’s operating partner in the transaction is an experienced sponsor with a portfolio of over 70 properties in California, including several located in Orange County. This is the eleventh transaction LEM has closed with this partner.
“Our operating partner’s business plan updates and modernizes both the exteriors and interiors of this well located asset and increases the property’s visibility along a heavily traveled artery in Orange County,” said Herb Miller, a founding partner at LEM. “Implementing a value add plan should enhance the property’s appeal in the market and create strong upside potential.”