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| Archwood Real Estate, Inc. Investment Brokerage & Real Estate Financing (818) 376-8582 |
Mezzanine Financing
Quite often, a Borrower may find that their existing first mortgage has a yield maintenance
prepayment penalty that effectively prevents refinancing, and that the first mortgage Lender will
not allow a second mortgage. In this situation, a mezzanine loan can free up trapped equity
allowing the Borrower to leverage their assets and take advantage of attractive business
opportunities.
Alternatively, if a Borrower is seeking higher leverage for an acquisition than a bank or conduit
Lender is comfortable with, the answer may be a lower loan-to-value institutional first mortgage
in conjunction with a mezzanine loan. Archwood Real Estate can structure both parts of a
bank/mezzanine loan, including negotiating the terms of the intercreditor agreement.
prepayment penalty that effectively prevents refinancing, and that the first mortgage Lender will
not allow a second mortgage. In this situation, a mezzanine loan can free up trapped equity
allowing the Borrower to leverage their assets and take advantage of attractive business
opportunities.
Alternatively, if a Borrower is seeking higher leverage for an acquisition than a bank or conduit
Lender is comfortable with, the answer may be a lower loan-to-value institutional first mortgage
in conjunction with a mezzanine loan. Archwood Real Estate can structure both parts of a
bank/mezzanine loan, including negotiating the terms of the intercreditor agreement.
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| Archwood Real Estate, Inc. - 16217 Kittridge St., Van Nuys, CA 91406 - Phone: (818) 376-8582 - Fax: (818) 376-8572 California Broker #01445207 |
