LEM Capital LP, a real estate private equity firm, has closed its fifth fund at $330.8 million. The fund will invest in multifamily properties in primary and secondary suburban markets in the U.S.
Philadelphia, PA – LEM Capital, L.P. (“LEM”) today announced the closing of its fifth private equity fund with total capital commitments of $330.8 million. The Fund will invest in Class B value-add multifamily properties in primary and secondary suburban markets across the United States. Over eighty percent of investors in the Fund were repeat investors from previous private equity offerings including the two lead investors.
“Given the uncertain environment, we feel fortunate to have exceeded our internal target of $300 million. We are grateful to all of our investors for their continued support of LEM, but especially to our lead investors who each increased the commitments to this Fund,” said Jay Eisner, a founding partner of LEM. To date, the Firm has raised over $1.3 billion in investor commitments. 1
Despite the economic shutdown and overall slowdown in activity, LEM has continued to find ways to transact. Since 2011, LEM has invested in 94 multifamily properties across 27 markets and has realized 51 of those investments. 1 Between March and May of 2020, LEM acquired one property, sold another, and completed two refinancings. 1 LEM is actively negotiating the sale of four additional properties with additional sales on the horizon.
“On the acquisition front, we are starting to see more ‘green shoots’ with more deals coming to market,” said Allison Bradshaw, Managing Director of LEM. “Deal volume is certainly lower than it was this time last year, but we believe that our disciplined fund size and diligent investment process should allow us to find investments that offer the opportunity to achieve our targeted returns. “
LEM invests in apartment properties located in primary and secondary markets on the east and west coasts, the four major cities in Texas, Phoenix, Denver, Minneapolis, Chicago, Nashville and other cities on a select basis. “Multifamily has a proven history of performing well through previous economic downturns, which is one of the factors that attracted us to the asset class. So far through the pandemic, our portfolios have held up well with strong collections and retention rates. While there is some near term uncertainty, we remain confident in this sector and the longer-term fundamentals,” said Herb Miller, a founding partner of LEM, “People need a place to live and the existing imbalance between demand and supply for multifamily should continue to help support the need for this property type.”
About LEM Capital
LEM Capital is a real estate private equity firm with an 18-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 and intensive asset management oversight, all led by the firm’s partners. 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 commitments and invested over $7.7 billion in real estate contributing to their expertise in structuring, execution and asset management. This includes acquiring over 22,000 value-add apartment units since 2011.1