LEM Mezzanine
Cira Centre
2929 Arch Street
Philadelphia, PA 19104-2868
215.557.9600 (phone)
215.557.9606 (fax)
Structured Finance Program
| PHILOSOPHY | Terms and pricing of individual transactions are dependent on project leverage, debt service coverage, evaluation of the underlying real estate and the sponsorship. LEM executes quickly and efficiently from term sheet to closing. We have established relationships with lenders and have been in the market for over 10 years, building a proven track record of being dependable and reliable. |
|---|---|
| LOAN STRUCTURES | Preferred equity, mezzanine loans, B-notes, bridge loans and other creative structures as necessary to meet transaction requirements. |
| LOAN AMOUNTS | $5,000,000 - $20,000,000 per property; no limit for portfolios. |
| PROPERTY TYPES | Multifamily, student housing, senior housing and office on a nationwide basis |
| TERM | Generally 3 to 7 years |
| MAXIUM LTV/LTC | A maximum LTV of 85% (see our Preferred Plus Program for higher LTV) |
| MINIMUM DSCR | Minimum DSCR of 1.10x, based upon actual cash flows. |
| INTEREST RATES | Market based pricing, currently 12% to 16%; may include partial accrual |
| FEES | 2.0% up-front |
| AMORTIZATION | Payments are interest-only |
| PREPAYMENT | Prepayment based on treasury yield to maturity |
| NON-RECOURSE | Generally non-recourse, except for standard lender carve-outs. |
| OTHER FEATURES | Loan structures are tailored to each individual transaction and may include accruals and look-back payments. |
| SAMPLE TRANSACTION TYPES |
Rescue Financing: LEM will assist with maturing loans that require additional capital for refinance or extension.
Acquisition: LEM works with all first mortgage lenders to provide joint funding along with new first mortgage originations of up to 85%-90% of cost.
Purchase Distressed Debt: LEM will purchase or finance the purchase of distressed debt from motivated sellers. We will work with potential borrowers to buy debt at a discount. LEM can also provide structures that defer taxable income from discounts or cancellation of debt. |
| ABOUT LEM | LEM is a $450 million series of private equity funds that provides subordinate financing and is also an active purchaser of first mortgages and B-notes, mezzanine loans and other subordinate debt. |