LEM Mezzanine Closes $3 million B-note

LEM Mezzanine, a direct lender and investor in high-leverage mezzanine debt and preferred equity, recently closed a $3.0 million B-Note collateralized by a 110,000 square foot office building in downtown Denver, Colorado.

LEM's loan is subordinate to a 3-year, $16.7 million conduit loan. The loan has two 12-month extension options. "The asset has significant near term rollover with below market rents and the sponsor has a great opportunity to increase revenue," said Doug Wilberding a Managing Director with LEM. "Our solid basis, strong sponsorship and underlying market fundamentals allowed us to be comfortable with this investment," added Wilberding.

LEM, a series of private equity funds with over $450 million of equity, provides mezzanine loans, preferred equity and B-Note financing from $1 million to $20 million and first mortgage bridge loans from $15 million to $75 million for commercial and multifamily properties nationwide. LEM writes larger deals if they involve a portfolio of assets or special situations. Loans are generally non-recourse for up to 90% of value with terms of up to 10 years. LEM can provide mezzanine financing behind CMBS, Fannie, Freddie, insurance companies, banks and other senior lenders.

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 with over $6 billion of capital under management.