Product Summary (Core)
One Underwriting, One Approval, One
Commitment & One
Closing Process
The Mezz Cap Core Product provides our Strategic Lending Partners with the ability to offer supplemental mezzanine financing in conjunction with their senior conduit loans. On a delegated underwriting basis, we provide our Strategic Lending Partners with a “B” Note product that allows them to lend an additional 5% of appraised value (up to 85% LTV) on the same term and amortization as the senior loan. There is just one underwriting, one approval, one commitment and one closing process – all controlled by our Strategic Lending Partners. Our unique business model enables borrowers to obtain fast, simple and reliable mezzanine capital from our Strategic Lending Partners, without the headache and expense typically associated with the mezzanine financing process. All commercial property types (except healthcare) located within the continental United States are eligible. Let us refer you to our Strategic Lending Partners so you can obtain the extra loan dollars you need.
| Product Summary |
| Guidelines |
Core Product |
| Property Types: |
All types, except healthcare |
| Loan Amount: |
$250,000 - $4,000,000* (up to 5% of the appraised value) |
| Coupon: |
16.75% ($250,000 - $4,000,000*) |
| Term: |
Matches A Note (7 to 15 years) |
| Maximum Amortization: |
Matches A Note (up to 30 Years) |
| Interest Only: |
See table below |
| Minimum DSCR: |
1.07x combined
(Based on A note and B note amortizing constants) |
| Maximum LTV: |
85% combined |
| Prepayment: |
Defeasance or Yield Maintenance |
| Lockbox: |
Not required |
| Quotes/Underwriting/Approval
Commitment/Closing: |
Delegated to Mezz Cap’s
Strategic Lending Partners |
| Loan Structure: |
B Note |
| Origination Fee: |
1% ($250,000 - $1,000,000)
Par ($1,000,001 - $4,000,000*) |
| Administrative Fee: |
$1,000 |
| Free Option: |
Borrower can decline until commitment |
* Mezz Cap will consider B notes above $3mm, up to $4mm, on a case-by-case basis.
| Interest Only Parameters
|
| Loan Term |
Maximum IO Period/amortization** |
| A Note |
B Note |
| 0 – 3 YEAR IO PERIOD (no pricing premium) |
| 10 - 15 |
3/30 |
3/30 |
| 7 |
2/30 |
2/30 |
| ** Mezz Cap will consider, on a case-by-case basis, longer interest only periods for loans on which the A Note LTV is 75% or less (70% for hotels). |
