LEM Closes $2,600,000 B Note

LEM Mezzanine, a direct lender and investor in high-leverage mezzanine debt and preferred equity, recently closed a $2.6 million B Note collateralized by a 148,000 square foot office building in downtown San Francisco, California.

LEM's loan is subordinate to a 10-year, $24.4 million conduit loan. The asset has significant near term rollover, and an in place debt service coverage of less than 1.00x. However, a solid basis, strong sponsorship, and underlying market fundamentals allowed LEM to be comfortable in the position.

"As a balance sheet lender, we can underwrite future performance when the underlying real estate fundamentals are solid," said Carter Hughes, a Vice President with LEM.

LEM, a series of private equity funds with over $450 million of equity, 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.