Mezzanine Loan Financing

January 27th, 2012

Mezzanine Loans & Preferred Equity Financing

Whether you call it mezzanine debt, a mezz piece, or preferred equity investment, mezzanine loans for stabilized commercial real estate projects are the de facto financing tool to bridge the gap between the property’s senior debt, such as a mortgage or other first position lien, and the sponsor’s equity contribution to the project. In today’s real estate financing market, where primary lenders are unable to provide high leverage through A or B-notes, qualified real estate sponsors are increasingly turning to our third party mezzanine lending programs to round out the capital stack on new purchases and to free up cash through equity withdrawal on properties with existing permanent senior debt financing.

Summary of Our Commercial Real Estate Mezzanine Loan Programs:

  • Loan Amounts from $2MM to $100MM
  • Up to 90% Combined LTV
  • Minimum 1.0 X Combined Debt Service Coverage Ratio
  • Secured against partnership interests or LLC membership interests of the Ownership vehicle / entity (No Lien on Real Estate)
  • Compatible with most permanent CMBS / Conduit, Life Insurance Company & Bank senior debt
  • Terms from 12 months to 10 years (depending on maturity of underlying senior debt)
  • Total Rate of Return from 12%-14% IRR
  • As Low as 3 Points Cost

What Property Types are Eligible?

National Class A & Institutional Quality Class B Assets of the following types:

  • Apartment & Multifamily
  • Office Buildings & Complexes
  • Retail Centers
  • Hotel & Hospitality
    Market Update: Properties in the Greater New York City Metro area and selected MSAs nationwide may be allowed some deviation from the preceding general guideline information.

Our Mezzanine Loan Advantages:

  • Streamlined direct investor underwriting
  • Lower Cost of Capital than classic Equity investments
  • Fannie Mae, Freddie Mac and FHA / Ginnie Mae Senior Debt OK
  • Syndication of multiple investors for multiple junior tranches with one lower set of fees
  • Available even when conventional Subordinate or Junior Debt financing options (including 2nd Mortgage / B-Note) are not permitted.
  • Lower Cost of Equity Withdrawal / Cash Out compared to the cost of Yield Maintenance or Defeasance associated with Refinancing a permanent loan in today’s capital markets.

Give us a call. Find out How. +1 (800) 290-4770

$1MM to $250MM+ Financing | Call (800)290-4770 ext.2

FEATURED PROGRAM:  Qualify Using Market Rents
Unique Apartment Loans & Multifamily Permanent Financing allows Debt Coverage using Market Rents as NOI.   5+ Unit Properties OK

FEATURED PROGRAM: Small Balance Apartment Loans
Purchase or Refinance Apartment Buildings & 5+ unit Multi family homes from $500K to $1.5MM. Up to 97% LTV   Stated Income Available OK

FEATURED PROGRAM: One Time Close Construction Loans
Safe, flexible, single close Construction to Permanent Financing or Acquisition & Development Loans   Up to 90%+ Loan to Cost OK

FEATURED PROGRAM: Office Park Financing
Permanent Financing for Office Parks. Purchase / Office Acquisition Loans + Competitive Refinance Terms   Office Building Investment OK

FEATURED PROGRAM: Mezzanine Loan Financing
More than ever, credit worthy sponsors are turning to the Mezz markets to raise money. Find Out How!   All Commercial Properties OK

 
√ AMOUNT DESIRED   √ PURPOSE OF LOAN
 
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√ YOUR LAST NAME   √ PHONE NUMBER
 

Mezzanine Loans News & Articles

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Mezzanine Loans in 50 states nationwide unless otherwise noted. | 3rd Party Articles

 

looking for

Mezzanine Loans?

let's talk

we are a leading financier and

facilitator of real estate capital

specializing

in mezzanine loans and

preferred equity investments

direct

access to capital from active

commercial real estate investors

better

less expensive than refinancing

an existing permanent loan

faster

mezzanine lending on income

producing property to $100MM+

bigger

mezzanine lending on income

producing property to $100MM+

solutions

build it. buy it. bridge it. mezz it.

refinance. cash out. get equity.

solutions

build it. buy it. bridge it. mezz it.

refinance. cash out. get equity.

give us a call. find out how.

Desired Loan Amount

Type of Loan

Your Last Name

Telephone Number

--

volume

Over $6 Billion in Total Loan Volume
Originated over the past 24 months

mezzanine loans for real estate sponsors

Maximize leverage up to 90% LTV
Borrow $2 Million to $100MM+
Secured against LLC or Corporation

flexible terms

From 6 Months to 10 Years
Life Company & Conduit Compatible
Take cash out for any purpose

defease this

Mezzanine loans can be significantly cheaper than the cost of refinancing, especially considering current defeasance or yield maintenance costs

eligible properties

Class A & Institutional Quality Class B Projects Only:
Apartment, Multifamily, Office, Retail, NNN
Credit-Tenant, Warehouse, Industrial

loan limits

Unlike your bank, our capital sources span the globe. So $100MM is as accessible as $5MM. Our average transaction is $20MM+

easy to qualify

Low 1.0 DSCR/ Debt Coverage Minimum

high leverage still available

Up to 90% LTV still available for qualified Sponsors

small to mid balance OK

From $2 Million minimum.
No previous investment banking relationship required.
Our average transaction is $20MM.

hey, it's your money

Use mezzanine loan proceeds to increase leverage or add value in a purchase, or as an alternative to refinancing. Construction permissible in NYC only.

cheaper than defeasance

From 12% IRR
As little as 3 points
Lower legal & due diligence expenses

compatible w/ existing financing

CMBS / Conduit loans
Life / Insurance Company loans
Conventional Bank financing

structured to fit your project

Mezz Loan secured against shares or partnership interests
Preferred equity investment structures available

syndicate multiple investors

We help you organize the capital stack utilizing multiple investors & tranches as needed, reducing due diligence expenses & speeding time to closing