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. We can structure both parts of a bank/mezzanine loan, including negotiating the terms of the intercreditor agreement. Our Direct Private Lending affiliate, W Financial, regularly works in tandem with our institutional Lenders.

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