Mezzanine Loans

Mezzanine Loans

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
Geographic Region Nationwide
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)
Term 1–3 years
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.