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Currently, our real estate loan portfolio consists primarily of structured junior participations in high quality short- to medium-term variable rate first mortgage commercial real estate loans ("B-notes"). LNR works with leading financial institutions in underwriting and structuring these loans. The senior participations are securitized in many cases by the financial institutions. LNR generally is designated as the special servicer for the junior loan participations as well as the securitizations. This allows us to fully utilize our expertise to manage and monitor successful borrower/lender relationships.  Complementing our first mortgage loan portfolio, we have several mezzanine loans to developers or builders of residential communities and owners of stabilized operating properties. These loans are usually subordinate to construction loans or other first mortgage loans, and often provide us, in addition to interest income, participation in profits after the developers, builders or owners have achieved specified financial targets. |
LNR invests in unique high
yielding real estate loans including performing and non-performing loans,
participations in first mortgages and mezzanine loans.