LEM Closes Mezzanine Loan in 16 Days

LEM Mezzanine, a direct lender and investor in high-leverage mezzanine debt and preferred equity, closed a $5.9 million mezzanine loan in just 16 days from application. The loan is on an eight property portfolio located in Charlotte, NC and Fredericksburg, VA and is behind a $54.7 million new first mortgage. The transaction has a four-year term.

The multifamily portfolio was purchased by an owner/operator in joint venture with a new equity partner. A time-of-essence closing required LEM to move very quickly. "This deal played to our strengths", said Brian Morris, a managing director with LEM. "Our streamlined internal process, combined with our ability to dig quickly yet thoroughly into markets, allowed us to close this complex transaction in just 16 days."

LEM structures its investments in a variety of different ways including mezzanine loans, preferred equity and A/B notes and provides fundings behind new conduit and agency loans with terms of up to ten years. LEM also specializes in providing financing in transactions where there is existing first mortgage debt. They have 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. The company provides financing of up to 85% to 90% of the capital structure with terms of up ten years. LEM's principals include Ira Lubert, Jay Eisner and Herb Miller. LEM'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.