Mezzanine Financing for Commercial Real Estate

This listing offers mezzanine financing, a hybrid debt and equity instrument, specifically for commercial real estate projects. It serves as a bridge between senior debt and pure equity, providing higher leverage options. Key features include up to 90% Loan-to-Value (LTV) on stabilized properties and up to 85% Loan-to-Cost (LTC) on ground-up construction. Interest rates typically range from 12% to 20%. While subordinate to senior lenders, it is senior to equity. Note that certain loan programs, such as HUD multifamily loans, prohibit mezzanine financing, and others, like agency lenders (Fannie Mae, Freddie Mac), have specific guidelines. CMBS lenders may permit it with an inter-creditor agreement. Minimum loan amounts begin at $2 million.