Mezzanine financing is a form of debt positioned between senior debt (the first mortgage) and equity in a deal's capital structure.
Log in to followI've been reading a mezz loan package for practice, no money in it, and the collateral section stopped me. The senior lender has a mortgage on the property. The mezz lender has a…
Every mezz summary I read lists the conversion to equity as one of the protections. The mezz lender can end up owning the ownership interest in the entity that holds the property,…
Mezz targets 10 to 15 percent. Common equity in the same deals is usually pitched at high teens and up. So you're giving up several hundred basis points of upside in exchange for…
Went through a fund deck last week where the manager made a whole selling point out of the fact that REITs are cautious about holding mezz. The pitch was that the rules explicitly…
Mezzanine debt has been on my mind for a few weeks and I want to test something with people who actually do it. What I understand so far. Mezz sits between the first mortgage and…
Sizing exercise I keep landing on from four directions and getting four answers. Suburban office-to-flex conversion, stabilized, in-place NOI $2.35m. Maturing loan at $24m written…