LEM Closes $19 Million of Preferred Equity
and Mezzanine Financings

LEM Mezzanine, a direct lender and investor in high-leverage mezzanine debt and preferred equity, recently closed a series of multifamily and office deals throughout the United States. The five transactions, all with separate borrowers, ranged from $1.8 million to $8.0 million and involved a total of 1,295 apartment units and a 780,000 square foot office portfolio. The terms of the transactions range from six to ten years.

Acquisition financing for two apartment transactions, located in Las Vegas and Biloxi, MS, was structured as preferred equity behind existing first mortgages. A third apartment transaction, located in Los Angeles, required preferred equity behind a new Fannie Mae first mortgage. LEM also provided mezzanine financing for the acquisition of an apartment complex located in Bensalem, PA. The largest transaction, an $8 million mezzanine financing, was in conjunction with the refinancing of an office portfolio located in Delaware.

"These transactions clearly demonstrate the breadth of capabilities that LEM brings to the table," said Herb Miller, a partner with LEM. "Various structures were utilized to provide the borrowers with the financing that best fit their needs and the geographic diversity of these transactions highlights LEM's ability to underwrite throughout the United States," added Miller.

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 over $4 billion of capital under management.

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