LEM Mezzanine
Cira Centre
2929 Arch Street
Philadelphia, PA 19104-2868
215.557.9600 (phone)
215.557.9606 (fax)
Preferred Plus Program
| PHILOSOPHY | Terms and economics of individual transactions are dependent on sponsor capital, senior loan 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. |
|---|---|
| STRUCTURE | Preferred equity with an equity participation |
| 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 | Maximum LTV of 95% (see our Structured Finance Program for lower LTV) |
| MINIMUM DSCR | None. Payments are based on available net cash flow. |
| PREFERRED RETURN | Market based pricing, currently 10% to 15% |
| PARTICIPATION | Negotiable, but generally based on 25%-30% promote to sponsor |
| FEES | Generally 2.0% up-front |
| REDEMPTION | LEM requires reasonable control over the monetization of its participation. |
| OTHER FEATURES | The exact structure is tailored to each individual transaction and may include accruals and look-back payments. LEM will consider funding reserves for lease up costs and capital improvements. |
| 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 95% 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. |