Mezzanine Loan for Commercial Property

When you’ve maxed out your senior debt but don’t want to dilute your equity, mezzanine financing becomes the lever that gets your commercial real estate deal over the line. It sits behind the first mortgage and above the equity — and if your project’s solid, it can be the difference between “almost” and “closed.”

At Financely, we help real estate sponsors secure mezzanine loans for acquisitions, recapitalizations, and developments. We underwrite the deal internally, package it professionally, and distribute it to our network of private credit lenders, funds, and structured capital providers.

What Is a Mezzanine Loan?

A mezzanine loan is a form of subordinate debt that fills the gap between the senior loan and the sponsor’s equity. It’s typically used when senior lenders cap out at 60%–70% LTV, but the project economics support higher leverage.

Mezzanine debt is usually unsecured or secured by a second lien or preferred equity position. In exchange for that risk, it comes with higher interest rates — often between 10%–14% — and sometimes a profit participation or equity kicker.

When Does Mezzanine Debt Make Sense?

Not every deal needs it — but here’s when it’s a smart tool:

• You’ve secured a great asset but need to move quickly with limited equity
• You’re buying out a partner and want to avoid raising new equity
• Your construction lender is short on proceeds and you don’t want to overcapitalize the deal

If the asset cash flows well or the value uplift is clear, mezzanine capital lets you boost leverage without waiting for another capital raise.

How Financely Helps Sponsors Secure Mezzanine Loans

We’re not a listing site. We’re a deal advisory platform. Our approach is simple:

• We underwrite the economics of your project — looking at NOI, DSCR, capex, and exit
• We help you prepare a clean deal file with summary, model, and structure
• We distribute the opportunity through our lender network — private credit funds, family offices, and structured capital desks
• We manage conversations, negotiate terms, and support you through closing

You keep control of the deal. We bring capital to the table and eliminate the noise.

Example: $22M Office-to-Resi Conversion in Atlanta

A sponsor was acquiring a downtown Atlanta office building for conversion into residential units. The senior lender was only covering 65% of the capital stack — and the sponsor didn’t want to overextend on equity.

Financely underwrote the project, modeled a mezz tranche with a 13% IRR, and distributed it to three lenders. The winning group funded a $4.5M mezzanine loan within 21 days.

The project closed and construction began 30 days later. No dilution. No delays.

What Lenders Look For

Mezzanine lenders are sharp — they look past the brochure. To attract real interest, your deal needs:

• Clear business plan and upside
• Proven sponsor or qualified GC
• Exit strategy that repays the mezz note (sale or refinance)
• Strong DSCR or achievable stabilization plan

If your numbers make sense, mezz capital can move fast. We’ve seen deals close in as little as 3 weeks from submission.