LEM Capital and Sack Capital Partners Acquire 122-Unit Fremont Multifamily Asset in Bay Area Value-Add Play

LEM Capital has acquired Koda on Fremont, a 122-unit multifamily community located at 39867 Fremont Blvd in Fremont, California, in a joint venture with Bay Area-based Sack Capital Partners. The transaction marks LEM Capital's first entry into the San Francisco Bay Area and the first partnership between the two firms, the company announced Aug. 27.

The property, built in 1970, will be rebranded Tempo Fremont as part of a comprehensive value-add repositioning strategy. The seller was an affiliate of Harbert Management Corp., which had acquired the asset in 2024 for $35.8 million. The purchase price for the current transaction was undisclosed.

Repositioning Strategy and Planned Capital Improvements

LEM Capital and Sack Capital Partners plan to build on capital work begun under prior ownership, which the firms describe as incomplete, creating what they characterize as an opportunity to finish the property's transformation. Planned improvements include the installation of mini-split air conditioning systems across all 122 units, enhancements to the pool and outdoor amenity spaces, upgrades to residential building corridors, and improvements to overall curb appeal and exterior branding.

The two-story, garden-style community offers one- to three-bedroom units ranging from approximately 744 to 1,030 square feet. Asking rents at the property have been listed in the range of roughly $2,499 to $3,981 per month depending on unit size, positioning the asset in line with or slightly above regional Bay Area multifamily averages.

"We are very excited to enter the Bay Area with this off-market opportunity," said Kevin Weidman, Managing Director at LEM Capital. "Sourced through one of our locally based operating partners, this asset offers meaningful physical and management upside in a highly dynamic and supply-constrained submarket."

Location and Submarket Fundamentals

Tempo Fremont sits in the Sundale neighborhood of Fremont with access to Interstate 680, Interstate 880, the Dumbarton Bridge, and the Fremont BART station, which provides direct service throughout the Bay Area. The property's location connects residents to Silicon Valley's broader technology employment base as well as the Warm Springs Innovation District, which is home to employers including Tesla, Lam Research, Seagate, Western Digital, Thermo Fisher Scientific, and Boston Scientific.

LEM Capital cited strong household incomes, highly ranked public schools, limited new apartment supply, and proximity to major employment centers as key demand drivers supporting the repositioning thesis. The Fremont submarket has faced persistent constraints on new multifamily supply, consistent with broader Bay Area dynamics driven by restrictive zoning, high construction costs, and entitlement challenges.

Bay Area multifamily vacancy rates stood at approximately 5.4 to 5.6 percent region-wide in early 2024, with average asking rents ranging from roughly $2,406 per month for one-bedroom units to approximately $3,254 per month for three-bedroom units.

About the Joint Venture Partners

LEM Capital is a Philadelphia-based real estate private equity firm with a 24-year track record focused on multifamily value-add investments. Since 2002, the firm has raised approximately $1.9 billion in investor commitments and invested in over $9.5 billion in real estate value. LEM has acquired more than 28,000 value-add apartment units since 2011. The firm's investment approach pairs its network of local operating partners with disciplined investment selection, due diligence, and asset management oversight.

Sack Capital Partners is a Bay Area-based, vertically integrated multifamily owner and operator with a significant presence across Northern California and the West Coast. The Fremont acquisition represents the first joint venture between LEM Capital and Sack Capital Partners, with Sack serving as the local operating partner responsible for day-to-day management of the asset.

Market Context

The Koda on Fremont transaction represents a second-generation value-add trade in a submarket that has attracted sustained institutional interest. Harbert Management Corp. acquired the asset in 2024 and initiated capital improvements before selling to the LEM Capital and Sack Capital Partners joint venture in 2026. The new ownership intends to complete the repositioning program and capture rent growth through the planned unit and amenity upgrades.

The deal adds to LEM Capital's growing national apartment portfolio and establishes a new operating partnership in one of the country's most supply-constrained coastal markets.

Sources

LEM Capital – LEM Capital Acquires San Francisco Bay Area Property