Loan Product
Mezzanine Financing, Preferred Equity & JV Equity: Filling the Stack.
Big deals do not get done with one loan. They get done with a stack. Senior debt at the bottom. Then mezzanine. Then preferred equity. Then the cash you and your partners put in. That stack has to be built right or the deal does not pencil. The institutional sweet spot for mezz and equity is $10M and up. Subordinate debt runs through credit funds with multi billion dollar books. Equity runs through family offices and private equity shops that actually write the check. You bring the deal. I build the stack.
When It's the Right Tool
- Senior loan tops out and you need to get to higher total leverage.
- You are a sponsor with a deal, a track record, and a need for an LP partner.
- You are refinancing and need preferred equity to take out a maturing partner.
- You are building ground up and the construction lender requires more equity than you want to write.
- You want to keep more upside by using mezz instead of giving up equity.
What the Network Covers
- Mezzanine debt ($5M to $250M)
- Preferred equity behind senior agency, CMBS, or bank debt ($5M to $250M)
- JV equity for value add multifamily and CRE ($5M to $100M)
- LP equity for opportunistic and core plus strategies ($5M to $250M)
- Construction equity stacks alongside ground up senior debt
- Recapitalization and partner buyouts
- CPACE for ground up and major capex
Loan Snapshot
- Loan Amounts
- $5M to $500M+ across the network
- Typical Sweet Spot
- $10M+
- LTV / LTC
- Program dependent
- Term
- Coterminous with senior debt where possible
- Closing Time
- 30 to 90 days, often coordinated with senior close
- Property Types
- Multifamily, office, retail, industrial, hospitality, mixed use, specialty
- Geography
- Nationwide, drawn from the 200 plus active capital source network
- Rates
- Rates depend on the deal. Submit your file or jump on a call and I will give you a real number.
Rates depend on the deal. Submit your file or jump on a call and I'll get you a real number.
How I Engineer the Stack
I quote the senior debt first (agency, CMBS, life company, debt fund, or bank), figure out where it tops out, then layer mezz or preferred equity to hit your target leverage. If even that is not enough, we bring in JV equity. The whole stack closes together. You see one capital structure with one timeline.
Frequently Asked Questions
What is mezzanine financing in commercial real estate?
Mezzanine financing is subordinate debt that sits between the senior loan and the equity in a CRE capital stack. It increases total leverage without giving up equity. Mezz lenders typically take a pledge of the equity interests in the borrower (not a second mortgage) and price between senior debt and preferred equity. We place mezzanine debt from $5M to $250M+.
What is preferred equity in real estate?
Preferred equity sits above the common equity but below the debt in a real estate capital stack. The preferred equity holder gets paid a fixed return before common equity sees a dollar. Used to fill gaps between senior debt proceeds and total project cost without diluting the sponsor's promote on the upside.
How does JV equity work for commercial real estate?
JV (joint venture) equity is institutional capital that partners with a sponsor on a deal. The sponsor brings the deal, the operating expertise, and a small co-investment (typically 5 to 10% of total equity). The LP brings the bulk of the equity check. Promote structures vary, but most use a tiered waterfall with preferred return, catch up, and promote splits.
What is the minimum size for institutional mezzanine debt?
Institutional mezz lenders typically write $5M and up, with the sweet spot at $10M+. Below $5M the market is thin and tends to be private money or family office capital. Above $25M the largest credit funds compete aggressively.
Can mezzanine debt be combined with bridge or construction debt?
Yes. Mezz routinely sits behind senior bridge, senior construction, and senior agency or CMBS debt. The whole stack closes together with intercreditor agreements between senior and mezz lenders. We engineer the full stack, not just the senior piece.
Important — Securities Disclosure
The Capital GOAT and Vision Mortgage LLC do not offer, sell, solicit, or recommend securities and are not registered broker-dealers. Equity introductions are made to sponsors who are the issuers of any securities and who are solely responsible for compliance with Regulation D, state Blue Sky laws, and all other applicable securities laws. Equity capital sources are typically accredited investors or qualified institutions. Nothing on this page is an offer to sell or a solicitation to buy any security.
Ready when you are.
Send me your file or pick up the phone. I answer 7 days a week.