LEM Focuses on New Mezzanine Financing and Loan Purchases

LEM Mezzanine, a direct lender providing structured finance alternatives for real estate owners, announced that it has more than $200 million to invest by year-end to originate mezzanine loans and purchase existing senior and subordinate debt. LEM typically invests longer-term and on a fixed rate basis, but has also done many floating rate transactions. The company is also active providing preferred equity structures in transactions where the senior loan must be assumed and the borrower needs more leverage.

"We remain active in today s capital marketplace and are targeting core and core-plus, cash flowing opportunities, whether they are a refinance, acquisition or purchase of an existing subordinate position , said Herb Miller, a founding partner of LEM. "Our strong equity base gives us liquidity to originate or buy positions and to continue lending in this environment. We can help senior lenders, brokers and borrowers get transactions closed during this tough period," added Miller.

"In this capital market climate, with rising first mortgage rates and reductions in loan proceeds, borrowers will require more mezzanine financing to complete their transactions, and LEM has geared up to fill that need," said Jay Eisner, a founding partner of LEM. "We see an opportunity to work with borrowers whose senior debt is maturing and who need to reduce that debt in order to refinance or extend their loan. We also expect an increase in preferred equity requests since buyers may want to keep existing low-rate loans in place, and leverage their acquisitions with LEM s preferred equity. LEM uses the preferred equity structure in transactions where mezzanine financing is prohibited, usually because of restrictions in the existing first mortgage.

LEM has provided mezzanine financing behind, FreddieMac, FannieMae, CMBS, insurance companies, banks and other senior lenders.

LEM, a series of private equity funds with over $450 million of equity, provides mezzanine loans, preferred equity and B-Note financing from $5 million to $25 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 with terms of up to 10 years.

LEM is a direct lender, providing mezzanine loans, preferred equity, and other forms of subordinate financing to meet the needs of each transaction. LEM prides itself on its creativity and ability to close deals quickly, and it does not depend on third party funding, outside approvals, or the vagaries of the investor marketplace. With complete control over all aspects of the transaction from sourcing to closing, LEM is a true 'one-stop shop'. LEM also performs all asset management and servicing in-house. In today's marketplace, it is this level of service that makes LEM a structured finance leader.

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