Investment Approach
Lakeland Capital originated in Boston, Massachusetts where a predecessor entity made its initial acquisition in 2010. The firm continues to tactically invest in New England but is focused on the South Carolina Lowcountry, Virginia Tidewater and other selected southeast markets. Lakeland Capital maintains its primary offices in Charleston, SC and Washington, DC.
Lakeland seeks high-risk adjusted returns by investing in existing multifamily assets through which it can add value with physical and operational improvement. The assets are often located in submarkets that are at the time out of favor or unrecognized by the broader investment community, despite strong fundamentals and considerable unmet demand. These submarkets are more likely to deliver consistent occupancy and rent growth at favorable pricing and are less susceptible to short-term increases in supply.
Investments typically require a total capitalization of $20-50 million. These amounts are often inaccessible to independent investors and insufficient for institutional investors and allow Lakeland to participate in a less competitive acquisition process.
Investments are typically evaluated with a 3-5 year hold period with a sale assumed following completion of physical improvements and implementation of operational efficiencies. Transactions are always financed with long-term fixed-rate, prepayable or assumable debt to provide optionality with the exit.
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Lakeland Competitive Advantage
Preferred access to and evaluation of investment opportunities
Analytical grounding combined with experience and intuition as well as a deep network of local relationships and a long-standing favorable reputation in the markets in which we operate provide Lakeland with preferred access to investment opportunities.
Proven track record and execution capabilities
Rigorous adherence to processes learned from collective best practices at top real estate investment firms and investment banks allows for better management of variables within our control.
Highly active asset management platform with a persistent hands-on approach and on-the-ground presence, including in-house property management in selected markets, ensures the ability to generate maximum value through operational as well as physical improvement.
Lakeland has achieved above-market returns– whether through exits or ongoing investments – across approximately 30 transactions.
Lakeland Value Chain
Investor Alignment
Material co-investment (typically 10% of the total investor equity) in sponsored transactions which contributes to an incentive structure that is more reliant on investment performance than fees.
Thorough reporting and transparency supported by a dedicated online portal for each investor, formal quarterly reports, and one-on-one communication.
A Practiced & Deliberate Path
While many firms pause investment during times of uncertainty, Lakeland has been an active investor (as both a buyer and seller) throughout business cycles by adhering to its core principles and processes – which can sometimes appear contrarian or at odds with the herd mentality. This is informed by a longer-term outlook and consistent approach to investment in real estate with sound fundamentals through implementation of a clear and actionable business plan which identifies and attempts to mitigate downside risk while maximizing opportunities for upside.
