May 10, 2021
LEM Capital Recapitalizes Glendale, AZ Property
LEM Capital Recapitalizes Glendale, AZ property
Philadelphia, PA – LEM Capital, L.P. (“LEM”) has acquired Paseo Park Apartments (the “Property”), a 480-unit apartment community located in the Glendale submarket of Phoenix that was built in 1987 and 1996. LEM plans to execute a comprehensive value-add business plan to upgrade the Property’s interiors, exteriors, and amenities. The Property was acquired through a recapitalization transaction with a repeat local operating partner.
The Northern Glendale submarket is a suburban area in the northwest quadrant of the Phoenix Metro area that has rapidly transformed over the past decade. The Property’s West Valley location is known for its affordable cost of living1 and features newly developed retail amenities, professional sports complexes and a diverse mix of businesses and jobs.2 The Property’s location is walking distance to both the Thunderbird Banner Medical Center, which employs over 3,000 people, ASU’s West Campus, and provides quick access to Interstate 17 which connects Glendale to Downtown Phoenix.2
Paseo Park features a desirable mix of one-, two- and three-bedroom floorplans which should attract a broad base of renters. The business plan includes a comprehensive interior renovation designed to provide luxury-style finishes at an affordable price point, as well as upgrades to the pool decks, modern signage, and additional lighting enhancements along the road frontage designed to increase the Property’s curb appeal.
“Paseo Park represents a unique opportunity to recapitalize a well-maintained Property with one of our most successful long-term operating partners,” said David Lazarus, a Managing Director at LEM. “The Property has significant physical upside and great frontage on a heavily trafficked road and we believe that the positive demographic trends in the submarket and the Phoenix MSA bode well for Paseo Park.”
About LEM Capital
LEM Capital is a real estate private equity firm with a 19-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 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 local partners with LEM’s disciplined investment selection, rigorous due diligence process and intensive asset management oversight. 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 commitments3 and has acquired over 23,000 value-add apartment units since 2011.4
Notes: 1 – Comparison of cost of living in North Glendale, AZ market versus Nation. 2 – Offering Memorandum, Park at 33rd, IPA. 3 – As of June 30, 2020. 4 – As of April 16, 2021.