Multifamily Mezzanine Loans
Multifamily and Apartment Mezzanine Financing
Mezzanine loans have emerged as a prominent type of secondary, or subordinate funding in today’s commercial real estate market place. Despite the fact that mezzanine loans, when it comes to commercial mortgages, are not regarded as a conventional methods of financing, their benefit is inarguable, and for the ideal clients (both borrower and lender), mezzanine loans are an indispensable resource.
As a merchant building contractor seeking to optimize your IRR, occasionally you may need maximum advantage since the amount of equity is typically more costly than non-recourse debt. Various other times you merely require additional leverage in order to keep liquidity readily available for other opportunities.
When aiming to develop your capital stack, the starting point is mezzanine financing and preferred equity. Even though multifamily as well as commercial mezzanine lending institutions commonly prefer to have a recorded second mortgage as security, a pledge of stock is also an alternative with regard to securing your mezzanine funding; this is generally described as preferred equity, and while there often isn’t any type of true equity or waterfall criteria, the security on its own is equity.
Call us today toll-free at (833) APT-LEND to consult with a multifamily mezzanine loan expert, or complete this form to arrange for a complimentary assessment.
Sample Mezzanine Financing Loan Terms For Multifamily and Commercial Property
Terms as of August, 2016
Amount: $3 million and up
Term: Coterminous with first
Interest Rates: 9% – 16% interest only
Fees: 3% – 6%
Maximum LTC: 85%