Financing for Real Estate – Mezzanine Loans and Preferred Equity Real Estate
Mezzanine Financing and Preferred Equity for Commercial Real Estate
Source Realty Capital has established connections with leading providers of mezzanine financing and preferred equity for commercial real estate properties. Our network of lenders allows us to provide clients with financing solutions across the full capital stack. Our team of financing professionals is actively involved in arranging mezzanine loans for real estate. We view mezzanine loans for commercial real estate as a cross between senior debt and equity. Mezzanine debt for commercial real estate provide real estate investors with greater access to capital. Moreover, mezzanine financing provides sponsors with a higher Loan-to-Value (LTV) than what traditional 1st lien debt would allow. Additionally, Source Realty Capital works together with specialized investors and select private equity funds that provide sponsors with preferred equity. As such, in situations where certain senior lenders forbid mezzanine debt for commercial real estate, an equity position can be useful to reach an LTV ratio of >90%.