LEM Closes Three Long Term Mezzanine Loans Totaling $12.4 Million

LEM Mezzanine, a direct lender and investor in high-leverage mezzanine debt and preferred equity, recently closed three mezzanine loans totaling $12.4 million. The loans, with three different borrowers, ranged from $2.2 million to $5.2 million and were collateralized by over 1.3 million square feet of office space.

LEM provided $5.2 million of mezzanine financing for the acquisition of two office buildings located in Indianapolis and $2.2 million of mezzanine financing for the acquisition of a medical office complex located in Michigan. In both cases the going in debt coverage ratio was below typical minimums, but LEM was able to underwrite and size the transaction based on pro-forma income since both properties required some lease-up to bring them to market occupancy. For the third transaction, LEM provided $5 million of mezzanine financing for the refinancing of a stabilized seven-building office park located in Northern Virginia.

"As a balance sheet lender, we are able to focus on more than just the current net operating income and underwrite the potential of the real estate and the owner's business plan," said Brian Morris, a Managing Director with LEM.

LEM, a $225 million fund, provides mezzanine financing from $1 million to $20 million for commercial and multifamily properties nationwide, generally valued in the $10 million to $100 million range. 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 and Lubert-Adler are part of Independence Capital Partners, a family of private investment management firms with approximately $6 billion of capital under management.

Visit our website: http://www.lemcapital.com/