LEM Closes Three Multifamily Loans totaling $7,350,000

LEM Mezzanine, a direct lender and investor in high-leverage mezzanine debt and preferred equity, recently closed three mezzanine loans totaling $7.35 million. The loans, with three different borrowers, ranged from $1.3 million to $3.3 million and were collateralized by five different multifamily properties.

In the first transaction, LEM provided $1.3 million of mezzanine financing for the refinance of a stabilized multifamily property located in Bethlehem, Pennsylvania. The mezzanine loan was subordinate to a 10-year fixed rate conduit loan of $28.0 million.

In the second transaction, LEM made a $2.75 million preferred equity investment to facilitate the acquisition of a stabilized multifamily complex located in Houston, Texas, where the borrower was assuming an existing, low-leverage first mortgage. LEM's preferred equity took the total leverage up to 90% of all-in costs.

In the third transaction, LEM made a $3.3 million preferred equity investment for the acquisition and rehabilitation of two multifamily complexes in Galveston, Texas. Total leverage, including a $19.5 million 10-year conduit loan, was 90% of the total acquisition and construction costs.

All three deals were with repeat borrowers. "Borrowers come back to us because of our ability to creatively structure deals and for certainty of execution," said Carter Hughes, a Vice President with LEM.

LEM, an $800 million private equity fund provides mezzanine financing from $1 million to $20 million and first mortgage bridge loans from $15 million to $50 million for commercial and multifamily properties nationwide. LEM writes larger deals if they involve a portfolio of assets or special situations. In general, non-recourse financing is available for up to 90% with terms of up to 10 years. LEM also specializes in providing financing in transactions where there is existing first mortgage debt.

LEM's principals include Ira Lubert, Jay Eisner and Herb Miller. LEM is part of Independence Capital Partners, a family of private investment management firms that includes Lubert-Adler with approximately $6 billion of capital under management.

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