Mezzanine & Preferred Equity
The senior loan covers most of the cost, but not all of it. Mezzanine debt and preferred equity fill the remaining gap so the deal closes without another round of sponsor equity. We place gap capital from $1M to $150M with a network of 8,000+ capital sources. No cost to apply, no credit pull at inquiry.
Apply now →Mezzanine debt and preferred equity are different tools. Mezzanine is a loan behind the senior loan, often secured by the ownership interests. Preferred equity is an investment that gets paid before common equity. Which one fits depends on the senior lender's consent terms and the sponsor's goals.
The senior lender sets the rules. Intercreditor terms, combined leverage limits and consent rights decide what gap capital is allowed. We look at the senior loan documents early so the structure we propose can actually be approved.
Combined leverage drives pricing. The higher the total debt against value or cost, the more the gap capital costs. A clear view of the combined stack lets us match you to programs that are comfortable at that level.
Timing matters. Gap capital is usually arranged alongside the senior loan, not after it. Starting both together avoids last-minute surprises.
Tell us the real story on your deal. Within one business day an underwriter tells you whether it is financeable and which of our 8,000+ capital sources fit it. There is no cost to apply and no credit pull at inquiry.
A subordinate loan that sits behind the senior mortgage and fills part of the gap between the senior loan and total cost. It is usually secured by the ownership interests in the borrowing entity rather than the property itself.
An equity investment that is paid ahead of the sponsor's common equity. It fills the same gap as mezzanine debt but is structured as an investment, not a loan.
No. Gap capital is often arranged alongside the senior loan. Bringing both to us together lets us line up terms that work with each other.
$1,000,000 to $150,000,000 in total capital requested.