LEM Closes $4.25 Million Preferred Equity on Las Vegas Apartments

LEM Mezzanine, a direct lender and investor in high-leverage mezzanine debt and preferred equity, has, through its fund affiliates, originated a $4.25 million preferred equity investment in two multifamily apartment properties located in Las Vegas, Nevada. The financing was part of an acquisition of one of the properties by a local owner/operator. The 10-year fixed rate first mortgage loans totaled approximately $25 million and were provided by conduit lender.

"This was a complex deal because we were providing funding for one property that the borrower had acquired about a year ago and one that was being acquired at the time of our funding," said Jay Eisner, a partner in LEM. "The borrower needed long-term financing, but wanted some flexibility in prepayment provisions because Las Vegas is such a strong condominium conversion market. As a portfolio lender, we were able to tailor the financing to meet their needs," added Eisner.

LEM structures its investments in a variety of different ways including mezzanine loans, preferred equity and A/B notes. LEM also provides financing in transactions where there is existing first mortgage debt and 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 $1 million and $10 million per property. It provides financing of 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 over $100 million per year. LEM and Lubert-Adler are part of Independence Capital Partners, a family of private investment management firms with approximately $3 billion of capital under management.

To discuss specific transactions or for more information about LEM, contact Jay Eisner or Herb Miller.