Case Study: Bridge and Mezzanine Capital Raised for $32M Multifamily Portfolio in California
Case Study: Bridge and Mezzanine Capital Raised for $32M Multifamily Portfolio in California
Large multifamily transactions rarely move smoothly from LOI to closing without gaps. In this case, a seasoned sponsor identified and signed for a $32 million multifamily portfolio in California. The opportunity was strong, but timing became an issue. Their senior lender was in place, yet delays in equity commitments created a gap in the capital stack just weeks before closing. Financely was brought in to solve it fast.
The Challenge
The acquisition required two pieces of capital to bridge the gap. First, immediate bridge capital was needed to satisfy the seller's closing timeline and avoid an extension penalty. Second, mezzanine financing was required to complete the capital stack behind senior debt but above common equity.
Traditional private equity groups would not meet the deadline. The sponsor faced losing the portfolio and their deposit without a solution that could move quickly and flexibly.
How Financely Solved It
Financely immediately underwrote the transaction and engaged its private capital partners. Within ten days, we secured a two-layer solution. The first was a $4.5 million bridge loan secured against the portfolio with flexible prepayment options. The second was $6 million in mezzanine debt structured with a fixed coupon and negotiated warrants for backend participation. Combined, these two tranches completed the capital stack.
The bridge capital satisfied the seller and closed the acquisition on time. The mezzanine allowed the sponsor to avoid dilutive JV equity while retaining flexibility for future refinancing once the assets were stabilized.
The Financely Advantage
Complex capital stacks require access and execution speed. Financely solved both. Our process delivered private credit solutions on compressed timelines while balancing cost, structure, and sponsor flexibility. The sponsor maintained full control and successfully closed one of their largest acquisitions to date.
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