What is mezzanine financing?
Mezzanine financing is a loan that sits behind the senior mortgage and fills the gap between that loan and the owner’s equity. Bravo’s mezzanine loans are for multifamily, assisted living and skilled nursing properties, from $500,000 to $20 million, interest only for up to 36 months, and secured by a pledge of the ownership interests in the property-owning entity.
Paired with a Bravo Property Trust bridge loan
Mezzanine is often combined with bridge or construction financing from Bravo Property Trust. One team underwrites both loans, so sponsors get one set of terms, one timeline and one closing, with the certainty of a lender that funds its own loans.
How it works
1. Senior loan. The bridge or construction loan is the first mortgage on the property and is repaid first.
2. Mezzanine loan. The mezzanine loan sits behind it, secured by a pledge of the ownership interests, and reduces how much equity the owner has to put in.
3. Sponsor equity. The sponsor’s own capital completes the capital stack.
Questions sponsors ask
How is mezzanine different from a bridge loan? A bridge loan is a first mortgage on the property. A mezzanine loan sits behind the senior loan and is secured by a pledge of the ownership interests in the property-owning entity.
Which properties qualify? Multifamily, assisted living and skilled nursing properties where additional capital is needed behind senior debt.
How do I get started? Send the deal to our team through the contact page or call +1 (212) 258-1000.
About Bravo Property Trust: Bravo Property Trust is a bridge and construction financing platform, an affiliate of Bravo Capital, which together have closed over $2.5 billion in financing.