Product Summary (Short
Term)
The Mezz Cap Short Term Product, a five-year term loan whose features closely mirror those of our Core Product, offers the same speed, simplicity, and reliability of our Core Product, and is available from each of our Strategic Lending Partners.
As with the Core Product, we provide our Strategic Lending Partners with the ability to provide an incremental 5% of leverage on a B Note, up to 85% of appraised value, on the same term and amortization as the senior A Note (amortization not to exceed 30 years on both the A Note and B Note). The Short Term Product is available on all commercial property types, except healthcare. 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 receive fast, simple, and reliable mezzanine capital without the headache and expense typically associated with the mezzanine financing process.
| Short Term Product Differentials vs. Core Product |
| Minimum Term: |
5 years (matches A Note) |
| Interest Only: |
Maximum one year on the A note and B note* |
| Maximum Prepayment Window: |
90 Days |
| Minimum Loan Size: |
$300,000 |
| Product Summmary |
| Guidelines |
Short Term Product |
| Property Types: |
All types, except healthcare |
| Loan Amount: |
$300,000 - $4,000,000** (up to 5% of appraised value) |
| Coupon: |
16.75% ($3,000,000 - $4,000,000**) |
| Maximum Amortization: |
Matches A Note (up to 30 years) |
| Interest Only: |
Maximum one year on the A note and B note |
| Minimum DSC: |
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% ($300,000 - $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 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).
**Mezz Cap will consider B nots above $3mm, up to $4mm, on a case-by-case basis.
