September 18, 2023

Mezz loans will be in high demand as first mortgage lenders are providing lower leverage levels and owners/operators are having a harder time raising equity. There is a wall of maturities coming next year and mezz will help fill the gap left behind by bridge lenders. Count on a strong need for mezz to help fit those gap financing needs, especially for refinancing and construction capital. Many traditional mezz lenders are pulling back their last dollar exposure, so keep an eye out for lenders requiring more equity going forward. More