We have private capital that can facilitate up to 90% of the project costs (up to 85% GDV) as second position funding behind the senior debt lender from 12% pa. Size is not an issue. We provide mezzanine loans from $100,000 up to uncapped.
Mezzanine development finance (or “mezz”) is provided to bridge the gap between senior bank funding and the developer’s equity investment into a property development transaction. Now that banks are lending less and leaving a much larger equity gap to be filled, developers are being put off taking projects and injecting all of their equity into one deal.