Product Summary (Core Plus)
Core Plus Adds Second Mezzanine Component Up to 90% LTV
Mezz Cap’s Core Plus Product, the first of several products to be launched under our Structured Program, is designed to provide borrowers increased leverage up to 90% of appraised value.
Working together with our Strategic Lending Partners, under the Core Plus Product, we will add a second mezzanine component (“C Tranche”) to the Core (A/B) structure. The C Tranche will be secured by ownership interests, whereas the A and B notes remain secured by the property. Many of the loan process efficiencies and streamlining concepts from the Core Product will remain the same. For example, we will continue to delegate information aggregation, including third parties and closing, to our Strategic Lending Partners. The credit decisions on the C Tranche will be made by Mezz Cap, who will provide our Strategic Lending Partners a joint commitment to be delivered to the borrower.
The Core Plus Product provides total leverage up to 90% of appraised value. The aggregate loan is comprised of: i) an A note from our Strategic Lending Partners providing typical conduit leverage; ii) a Mezz Cap B Note provided in accordance with its Core Product for the next 5% of appraised value; and iii) a C Tranche, provided by Mezz Cap, for the remaining incremental proceeds up to 90% of appraised value. The parameters of the C Tranche are outlined below.
