LEM Adds New Flexibility to its Mezzanine Product

LEM Mezzanine, a direct lender and investor in high-leverage mezzanine debt and preferred equity, has announced that they have enhanced their product offerings to include a new more flexible mezzanine loan.

LEM has introduced flexibility in its traditional mezzanine product to allow for take-out of the mezzanine loan by borrowers utilizing Fannie Mae's DUS Supplemental Loan product on first mortgages of $25 million and higher. "We look forward to rolling out this new product, which will provide up to 90% financing," said Jay Eisner, a founding partner of LEM. "This new product provides a great opportunity for DUS borrowers to use mezzanine financing to acquire or recapitalize a property and then take advantage of the DUS Supplemental Loan product to lower their overall cost of capital as the property performance improves," added Eisner.

LEM, which has been providing mezzanine loans in conjunction with conduit, bank and insurance company financing for the past four years, has made over $150 million of mezzanine loans to multifamily owners, involving over $1 billion of properties. "We have invested in over 100 apartment properties throughout the country. Our extensive experience in this sector allows us to underwrite and close multifamily deals quickly," said Herb Miller, also a founding partner of LEM.

LEM, a $200 million fund, focuses on multifamily, office, retail and industrial properties nationwide, generally valued in the $10 million to $100 million range, and makes mezzanine investments of between $1 million and $20 million per property. It provides financing of up 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 members of Independence Capital Partners, a family of private investment management firms with over $6 billion of capital under management.

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