LEM Makes Preferred Equity Investment In West Orange, NJ Apartments

LEM Mezzanine, a direct lender and investor in high-leverage mezzanine debt and preferred equity, has, through its fund affiliates, made a $2.3 million preferred equity investment to fund the acquisition of a portfolio of five apartment buildings, all located in West Orange, NJ. Washington Mutual provided the first mortgage of approximately $11 million.

"We felt very comfortable with this investment since the borrower is very hands-on and these properties are in their backyard," said Jay Eisner, a partner in the Fund. "We have closed transactions with many first mortgage lenders but this was the first deal that we closed with Washington Mutual," added Eisner.

LEM structures its investments in a variety of different ways including mezzanine loans, preferred equity and A/B notes and specializes in providing financing in transactions where there is existing first mortgage debt. LEM 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 and a Total Leverage Program that allows the Fund to provide the entire capital structure including first mortgages and mezzanine loans.

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. It provides financing up to 85% to 90% of the capital structure. LEM's principals include Ira Lubert, Jay Eisner and Herb Miller. The Company's objective is to invest $75 million to $100 million per year.

To discuss specific transactions or for more information about LEM, contact:

Jay Eisner
Partner
215-972-3322
eisner@lemcapital.com

Herb Miller
Partner
215-972-3323
miller@lemcapital.com