Mezzanine Financing & Preferred Equity

Mezzanine financing and preferred equity financing structures are more prominent in today’s commercial real estate financing market.  This secondary financing type allows a structure which can bring the total financing 80-95% of the capital stack.  In turn, less pure equity is required to secure full capitalization.

Mezzanine Financing Parameters:

  • Amount:  $1,000,000 – $50,000,000
  • Mezz / Preferred Equity Option:  To 85 -95% LTC / LTV
  • Equity:  Up to 90% of the required equity
  • Preferred Rate of Return:  Starting at 5%
  • Term:  1 – 10 years
  • Amortization:  To coincide with the permanent or construction financing
  • Non – Recourse:  Available
  • Prepayment Penalty:  1%