Edgewood’s Mezzanine Lending Program is designed to offer borrowers additional funding for ground-up development projects and transitional assets. As mezzanine lenders, our lending team has experience working with senior lenders to ensure there are no issues with inter-creditor documentation and that each deal is properly structured.
Edgewood Capital originates, holds, and services all loans. We provide high-quality customer service to build long-term relationships with our borrowers.
|Loan Size||$2 million - $20 million|
|Interest Rate||Rates starting at 12%|
|Security||Pledge of ownership/partnership interest in the borrowing entity|
|Leverage||Max 80% LTC|
|Property Types||Commercial Real Estate (Multifamily, Office, Industrial, Retail, Mixed-use, Hospitality, and Healthcare)|
|Points||2-3% of the loan amount to be paid from loan proceeds at closing|
|Closing||10 – 15 Business Days|
What is mezzanine capital?
Mezzanine capital is any subordinated debt or preferred equity instrument representing a claim on a company’s assets which is senior.
Are mezzanine loans interest only?
Typically, mezzanine loans are more expensive than typical first mortgage financing. Interest rates can range from 12% to 20%.
Is mezzanine debt or equity?
Mezzanine debt is a form of junior capital that bridges the gap between equity financing and debt. Typically, a company will use mezzanine debt to get the capital needed to fund its project without having to bring in more equity which is generally more expensive and give up more ownership.