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Mezzanine
Loan – Mezzanine loans are high-leverage, subordinated loans
secured either by the property and/or by the entity that
owns the property. Typical loans sizes for a mezzanine
lender start at $3million with interest rates in the mid to
high teens and 2 to 4 points. Depending on the property
type, location and project details, a mezzanine lender can
lend up to 90% of value.
Example: A shopping center investment company with a large
corporate infrastructure and many properties in their
portfolio wants to buy another project. However, given the
cash requirements of their corporate overhead and their
other new investments they need to keep their cash
investment in the new property to a minimum. They would be
seeking a mezzanine loan for this project because it would
give them the highest leverage and therefore keep their cash
investment in the new project as low as possible.
If you
require additional information, or would like to speak
to one of our commercial financing specialists, please call
us at 888.488.3807 or
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