Lane Co. Teams with Real Estate PE Firm to Form $250M Investing Fund

By Anuradha Kher, Online News EditorAtlanta–Lane Co. and real estate private equity firm, Lubert-Adler, have formed a $250 million multifamily venture that will invest in acquisitions of multifamily properties, primarily in the Southeast and Southwest. The initial funds will be used for the acquisition, rehabilitation and repositioning of distressed properties, or properties held by distressed sellers.“In this climate, with the credit markets in the shape they are in, Lane wanted a ready and reliable source of capital to invest in the opportunities we see in the market,” Eric Hade, general counsel and VP of Capital Markets at Lane Co., tells MHN. “The money from this fund will be the primary source of LP equity, and in most cases will provide 95 percent of the equity required. The remaining five percent will be provided by Lane.”In addition, the company is looking to leverage 65 to 75 percent in debt financing. “We expect more of this to come from the agencies,” says Hade.Lubert-Adler is a real estate private equity firm specializing in redevelopments through joint ventures with local operating partners. Lubert-Adler and Lane Company have been partners in a number of ventures over ten years, most recently, the acquisition of Solace on Peachtree Apartments in Atlanta, which is currently being renovated. Lubert-Adler previously invested in several of Lane Company’s award-winning communities in Atlantic Station, the live/work/play redevelopment in Midtown Atlanta. “We believe the volume of opportunities will increase in 2009 and 2010, so even though there is no timeline, we expect all the money to be invested by end of 2010,” Hade adds.Hade says that even though the company is being aggressive with acquisitions, property management will remain in focus.In 2007, Lane Company began actively pursuing acquisitions of “value-add” multifamily properties that need an infusion of capital or are located in recovering markets.