LEM Closes Flurry of Deals

LEM Mezzanine, a direct lender and investor in high-leverage mezzanine debt and preferred equity, recently closed a series of multifamily and office deals in New York, New Jersey and Quebec, Canada. The transactions, all with separate borrowers, ranged from $2 to $4.5 million and involved six multifamily properties and an office complex. The multifamily properties were in West Orange, NJ and Montreal and the office property was in Briarcliff, NY.

"We have definitely seen our volume pick up this year," said Jay Eisner, a partner in LEM. "Our strengths are that we offer borrowers quick turnaround and the ability to structure and close very complex transactions," said partner Herb Miller, "These deals are perfect examples of this."

Despite being the first deal LEM completed in Canada, the Montreal transaction closed in less than 30 days from application. The Briarcliff office deal involved the acquisition of a property with existing first mortgage debt, and LEM structured this to comply with the existing senior loan documents and then worked closely with the borrower to obtain servicer approval. The third deal involved a complicated intercreditor negotiation with a first mortgage lender that LEM had not worked with before. "In the end, the thing we do best to get deals across the finish line," said 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, 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. The company provides financing for up to 85% to 90% of the capital structure with terms of up to 10 years.

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