LEM Purchases and Restructures Three Existing Preferred Equity Investments in Apartment Properties

LEM Capital LLC, a direct lender and investor in high-leverage mezzanine debt and preferred equity, has, through its fund affiliates, invested $2.85 million to purchase and restructure three existing preferred equity investments from Credit-Suisse First Boston.

The three garden-style apartment properties contain a total of 1,025 units and are located in New Jersey and Delaware. LEM was able to structure each transaction so as meet the requirements of the first mortgage servicers. "As a private fund, we have tremendous flexibility in the structure of our investments, and our streamlined decision-making process allowed us to respond to issues and close these deals quickly", said Peter Steier, Senior Vice President. Steier was responsible for originating the transaction.

LEM, a $200 million fund, focuses on multifamily, office, retail and industrial properties nationwide, generally valued in the $10 million to $60 million range, and makes mezzanine investments of between $2 million and $10 million per property. LEM's investments can be structured in a variety of different ways including mezzanine loans, preferred equity and A/B notes.

LEM specializes in providing financing in transactions where there is existing first mortgage debt. The Company has worked with a number of different servicers and special servicers to develop structures that either comply with existing loan covenants or can be approved quickly.

LEM also has relationships with many first mortgage lenders to provide additional proceeds behind new originations. The Company's objective is to invest $75 million to $100 million per year.