Mezzanine Financing Guide
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WHAT IS MEZZANINE FINANCING?
A Powerful Middle Ground
Mezzanine financing is a subordinated loan that sits between senior debt and equity in the capital stack. It provides additional capital to increase purchasing power, preserve equity, and improve returns.
It often features higher returns than senior debt and more flexibility than traditional loans.
Key Features
LOAN AMOUNTS
$500K $100MM+
LTV
Up to 90%
INTEREST OPTIONS
Interest Only Options Available
RECOURSE OPTIONS
Recourse & Non-Recourse
NATIONWIDE AVAILABILITY
Financing solutions available across the United States
Typical Use
Acquisitions
Refinancing
Construction
Partner Buyouts
Tenant Improvements
Gap Financing
BENEFITS OF MEZZANINE FINANCING
- Higher Leverage - Finance more of the deal with less equity.
- Preserve Equity - Keep more equity working for you.
- Flexible Structures - Customized solutions for unique situations.
- Enhance Returns - Improve cash-on-cash return potential.
- Growth Capital - Accelerate growth and seize opportunities.
RISKS & CONSIDERATIONS
- Higher Cost of Capital - Typically higher rates than senior debt.
- Subordinated Position - Paid back after senior lenders.
- Complex Structure - More documentation and negotiation.
- Exit Strategy - Clear plan required for repayment or refinance.
Loan Highlights
- Loan Amounts: $500K - $500MM
- Flexible Loan Structures
- Competitive Financing Solutions
- Multiple Property & Business Types
- Recourse & Non-Recourse Options Available
- Customized Repayment Terms
- Fast Underwriting Process
- Transaction-Based Evaluation
Industries we surve
Real Estate
Manufacturing
Hospitality
Retail
Healthcare
Logistics
Professional Services
Industrial Operations
How Mezzanine Financing Works
1. Deal Evaluation
We analyze your deal structure and capital needs.
2. Structure & Terms
We create a customized mezzanine solution.
3. Underwriting
Our team underwrites the opportunity.
4. Approval
Terms are finalized and approved.
5. Funding
Funds are disbursed so you can move forward.
Frequently Asked Questions
What is mezzanine financing?
Mezzanine financing is a form of subordinate financing that sits between senior debt and equity. It helps bridge funding gaps by providing additional capital beyond traditional mortgage financing.
How much can I borrow with mezzanine financing?
Loan amounts typically range from $500K – $500MM, depending on the property, transaction structure, and borrower qualifications.
How is mezzanine financing different from senior debt?
Senior debt is the primary mortgage secured by the property and has first repayment priority. Mezzanine financing is subordinate to senior debt and is used to increase leverage when additional capital is needed.
What types of properties can be financed?
Mezzanine financing may be available for a variety of commercial real estate assets, including office, retail, industrial, multifamily, hotel, self-storage, mixed-use properties, and mobile home parks.
What are the typical terms for mezzanine loans?
Terms vary by transaction, but mezzanine loans commonly offer interest-only payment structures, flexible repayment options, and terms of up to 5 years or longer in certain situations.
Who is mezzanine financing right for?
Mezzanine financing is often suitable for real estate investors, developers, and owner-operators seeking additional capital for acquisitions, refinancing, development projects, recapitalizations, or growth opportunities.
Let's Build the Right Solution for Your Next Opportunity
Our team is ready to structure a mezzanine financing solution tailored to your goals.