Three of LEM Capital's partners, from left: Jay Eisner, David Lazarus, and Herb Miller

PHILADELPHIA, PA—LEM Capital says it had transaction volume in excess of $1 billion during 2018, and expects to acquire up to $500 million of apartment properties in 2019, mainly on the two coasts.

“We continue to focus on generating strong risk-adjusted returns for our investors by investing in value-add multifamily properties and creating investment portfolios that seek to generate a combination of current cash flow, downside protection and upside for our investors,” says Jay Eisner, a founding partner of LEM.

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“We were very active both buying and selling in 2018 with total transactional volume of over $1 billion, which included the acquisition of 11 properties totaling 2,690 units with a total capitalization of $508 million and the sale of 12 properties totaling 3,389 units with a total sale price of $503 million,“ says Herb Miller, a founding partner of LEM. “2018's results bring our total volume of transactions since 2011 to a total of 80 property acquisitions and 43 property sales.”

Since the firm was founded in 2002, LEM has raised over $1.1 billion of committed capital.

LEM says it expects to continue partnering with high-quality, local real estate operating companies to acquire value-add multifamily properties.

“Our target for 2019 is to acquire between $400 and $500 million of apartment properties located in primary markets on the east and west coasts, the four major cities in Texas, Nashville, Chicago, Minneapolis, Phoenix, Denver and other cities on a select basis,” says David Lazarus, a partner of LEM. “In today's competitive market, we believe the team we have built at LEM and the unique way we integrate our expertise and capabilities with our strong and reliable operating partners across the country sets us up for success.”

LEM's value-add multifamily equity program typically provides up to 85% of the required equity behind the senior mortgage debt, targeting equity investments ranging between $5 million and $20 million per property, with total capitalizations ranging from $20 million to $50 million or higher.

“LEM's value-add business plans typically contemplate upgrades to apartment interiors, common areas and a particular focus on the amenities with the goal of providing a 'like new' experience at a moderate price point for renters,” says Josh Grossman, a senior vice president on the acquisitions team. “We work closely with our operating partners through the bidding and acquisition process to develop and implement business plans that seek to create value over our typical 5-year hold period.”

Allison Bradshaw, senior vice president, LEM Capital, Philadelphia, PA

LEM also named Allison Bradshaw a senior vice president. She will play a lead role on the originations team and works with the managing partners to oversee the strategic growth of the firm.

“We are extremely pleased to have Allison join our team at LEM,” says Miller. “Her real estate investment skills will broaden our platform and strengthen our ability to execute our investment strategy.”

Bradshaw joins the firm from Greystar, where she was a managing director on Greystar's investment management team with direct oversight of a $1.9 billion multifamily portfolio and led acquisitions, dispositions, asset management and business development in the Northeast region.

Instant Insights /

LEM Capital 2018 Transactions Exceed $1B, $500M in Apartment Buys Expected in 2019

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