Preferred Equity & Mezzanine
Subordinate tranches ($3M to $50M+) pushing combined leverage up to 85% LTV/LTC.
When senior DSCR constraints cap bank or agency proceeds at 55–65% LTV, preferred equity or mezzanine debt bridges the gap without diluting your common equity upside.
We structure current-pay and PIK/accruing tranches behind senior construction, bridge, agency, and CMBS loans—ensuring intercreditor and recognition agreements are pre-cleared with the senior lender.
Solving Maturity Gaps & Partner Buyouts
Preferred equity is often the fastest, lowest-cost way to solve a cash-in refinancing shortfall or buy out a legacy LP partner while leaving an existing low-rate senior mortgage untouched.
We negotiate soft-pay versus hard-pay mechanics, cure rights, and minimum multiple floors so you preserve full operational control of the asset.
Typical Deal Parameters
| Tranche Size | $3M to $50M+ |
| Position | Above senior debt, below common equity |
| Rate | 10–16% (current pay or accruing) |
| Structure | Mezzanine loan or preferred equity interest |
| Maturity | Co-terminus with senior debt (typical) |
| LTV Range | Senior 55–70% + mezz/pref to 80–85% combined |
Need to bridge a refinancing gap or push acquisition leverage to 80–85%? Send us your senior loan terms and rent roll for 24-hour sizing.
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