L5 Investments Acquires 529 Units Across 3 Partnerships

Multifamily Executive
Between mid-October and mid-November this year, Sacramento, Calif.–based L5 Investments acquired 529 apartment units across three properties for a total of $37.82 million. Each of the transactions was conducted in partnership with a different equity or architecture firm:

​The Columbian Apartments in Seattle are owned with Schuler Architects; the Marina Gardens Apartments in Sparks, Nev., was acquired with Alamo Equities; and the Lenexa Pointe Apartments in Lenexa, Kans., were acquired with BH Equities.

The 40-unit, $5.82 million Columbian Apartments acquisition took place in mid-October. The L5/Schuler Architects partnership plans to invest $1.4 million in improvements for the 1960s-era building, including a contemporary remodel of the common areas, new appliances and laundry units in each apartment, and modernized exterior spaces.

Michael Flaherty, founder and CEO of L5 Investments, noted the value of the Columbian as a high-quality asset in the growing Seattle residential market, given its location. Beacon Hill is described as an emerging neighborhood, and the apartments are only a short walk from light rail and metro bus stops. “The Columbian presented us with an ideal opportunity to take a well-located apartment community with significant maintenance and management issues and transform it into a coveted place to live,” he said in a release.

L5 and Alamo Equities acquired the 200-unit Marina Gardens Apartments for $14.25 million in October. The 1973-vintage, garden-style community contains 60 one-bedroom units, 100 two-bedroom units, and 40 three-bedroom units across 31 two-story buildings. The property also includes two playgrounds, several barbecue areas, and three laundry spaces.

L5 and Alamo plan to invest nearly $4 million in upgrades, renovations, and modernization for Marina Gardens, which will be rebranded and renamed Marina’s Edge when the upgrades are complete. Improvements will include in-unit laundry, landscaping enhancements, and professional management from FPI.

The community provides easy access to the Tahoe Reno Industrial Center, a 107,000-acre park that's slated to be the world’s largest manufacturing complex upon completion. Upward of 50,000 jobs are expected to enter the area through the Industrial Center by 2017. Amazon, Apple, and SuperNAP have also opened operations in the area, and Tesla’s “gigafactory” is under construction nearby.

“Marina Gardens is a perfect fit for L5’s value-add investment strategy,” Flaherty said in the release. “It is well-located in an explosive growth job market and provides us with the opportunity to add significant value by improving overall management; resolving significant deferred-maintenance issues; and adding features and amenities that will attract renters seeking a quality rental living environment.”

The Lenexa Pointe Apartments in Lenexa, Kans.In mid-November, L5 partnered with BH Equities to purchase the 289-unit Lenexa Pointe Apartments for $17.75 million. The garden-style community is located 12 miles south of Kansas City, Kans., and contains 145 one-bedroom units, 144 two-bedrooms, and a swimming pool and clubhouse.

BH Equities will manage Lenexa Pointe through BH Management Services, its property management arm. The partnership’s $6 million renovation plan is set to add a new leasing center, business and fitness centers, and landscaping improvements, plus new finishes, flooring, lighting, appliances, and en-suite laundry in the apartment units.

“L5 continues to be bullish on seeking apartment assets in strategic locations that offer a favorable upside,” Flaherty said. “We are pleased to partner on another multifamily acquisition with BH Equities and believe our very comprehensive property renovation plans for Lenexa Pointe will provide residents with a quality, amenity-rich, and well-managed community.”

L5 currently has over $165 million in assets under management in seven states and focuses its investment efforts on value-add multifamily properties in emerging markets.

Read article on Multifamily Executive website: http://www.multifamilyexecutive.com/business-finance/transactions/l5-investments-acquires-529-units-across-3-partnerships_o

​ABOUT THE AUTHOR
Mary SalmonsenMary Salmonsen is a recent graduate of the S.I. Newhouse School of Public Communications at Syracuse University. As an Editorial Intern with Hanley Wood's residential construction group, she covers demographics, local markets, and finance for Builder and Multifamily Executive magazines.

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