American Landmark closes $460M apartment fund, now seeks to raise $500M

American Landmark focuses on investing in Class B properties throughout the Southeast

Miami /
Jul.July 12, 2019 04:30 PM
American Landmark CEO Joe Lubeck and the Miami skyline (Credit: iStock)

American Landmark CEO Joe Lubeck and the Miami skyline (Credit: iStock)

American Landmark Apartments and its equity partner Electra America are betting big on multifamily investments in the Southeast.

The two firms just closed on a multifamily fund of $462 million this week and are seeking to raise $500 million in another fund.

The closed fund totaled 37 multifamily assets with 12,600 units in the Southeastern United States. Out of the $462 million raised, $392 million has already been invested, according to a release. The company focuses on buying Class B and Class A-minus multifamily properties in the Southeast, including Florida, North Carolina, Tennessee and Texas.

American Landmark and Electra America CEO Joe Lubeck said via email that he is primarily investing in secondary markets in places like Nashville where there is strong growth in both population and jobs and a need for workforce housing.

The company buys apartments, then adds value to them by renovating or updating them and improving services and amenities, with a goal of increasing the return to investors, Lubeck said.

Investors in Electra America’s first two funds include private investors, as well as institutional investors such as the Israeli investment firm Psagot Investment House and Bank Leumi, a large Israeli bank. In total, American Landmark’s portfolio of 28,000 apartment units are valued at roughly $4 billion, according to the release.

Yet, the company avoids apartments in central business districts where there is a great deal of new construction and buildings, according to Lubeck.

In downtown Miami there has been a huge influx of new apartment buildings and rents are now averaging around $2,000 a month for Class A apartment buildings.

From 2014 through 2018, more than 20,000 Class A apartment units came on the market in Miami, according to a TRD analysis of data from Integra Realty Resources, which creates residential reports for the Miami Downtown Development Authority.

“We do think the price points in downtown areas in South Florida are starting to reach their limits for the average resident,” said Lubeck.

But demand for workforce housing and Class B properties remains high. Investors are paying high prices for apartments in Broward and Palm Beach County suburbs due to this supply shortage.

In May, American Landmark paid $91.5 million for a 448-unit apartment complex in Boca Raton at 10235 Boca Entrada Boulevard. It also bought two apartment complexes in November — one in Royal Palm Beach and one in Plantation — for a combined $105 million.

Electra America is based in Lake Park, Florida and is the American subsidiary of Israel’s Electra Real Estate, which is publicly traded on the Tel Aviv stock market.


Related Articles

arrow_forward_ios
The Buena Vista Gardens in Little Haiti (Apartments.com)
Bowery Properties buys Little Haiti apartment portfolio for $12M
Bowery Properties buys Little Haiti apartment portfolio for $12M
Walton Street Capital Managing Partner Eric Mogentale with the complex (Alta Developers, Walton Street Capital)
Walton Street Capital buys Boynton Beach apartments for $93M
Walton Street Capital buys Boynton Beach apartments for $93M
Avery Pompano Beach apartments with Yaakov Frankforter of Frankforter Group (LinkedIn via Frankforter, Avery Pompano Beach)
Frankforter Group buys Pompano Beach apartments for $43M
Frankforter Group buys Pompano Beach apartments for $43M
The Johnson and Wales campus and PMG principals Kevin Maloney and Ryan Shear (PMG)
PMG pays nearly $60M for Johnson & Wales North Miami campus
PMG pays nearly $60M for Johnson & Wales North Miami campus
Louis Puig and 333 Jefferson Avenue in South-of-Fifth (Google Maps)
Former Club Space owner buys South Beach apartments for short-term rentals
Former Club Space owner buys South Beach apartments for short-term rentals
Westdale president and CEO Joe Beard and Jeff Ardizon and Robert Suris of The Estate Companies with Soleste Bay Village (Estate, Soleste Bay Village)
Estate Companies sells Palmetto Bay apartment complex for $58M
Estate Companies sells Palmetto Bay apartment complex for $58M
The Devon Apartments in North Beach (Google Maps)
North Beach apartment building deemed unsafe, ordered evacuated
North Beach apartment building deemed unsafe, ordered evacuated
Royal Palm Companies CEO Daniel Kodsi with renderings of the project (LinkedIn via Kodsi, Royal Palm Companies)
Royal Palm Cos. scores $65M construction loan for Dania Beach multifamily
Royal Palm Cos. scores $65M construction loan for Dania Beach multifamily
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...