Commercial Real Estate Division

Mezzanine Lending

Synergy Capital Markets provides mezzanine financing collateralized by either a direct lien on the underlying real estate or a lien on the ownership interests in the real estate. Loans range from $500 thousand (USD) to $100 million (USD) and are typically for a term of up to 10 years.

 

Synergy Capital Markets' mezzanine programs are very flexible and are used to bridge the gap between traditional debt financing and sponsor equity in a project. Repayment can be structured from interest only or fully amortizing.

 

Synergy Capital Markets' mezzanine program can be used by owner/operators to complete new acquisitions, refinance existing properties, finance build-to-suit developments, acquire equity interests of limited partners in existing partnerships, finance tenant improvements and to develop commercial projects which are positioned to produce income within a reasonable period of time.

Program Parameters:

Eligible Locations:

  • Nationwide and some International

Property Types:

  • Majority of property types including but not limited to

  • Office,

  • Retail,

  • Industrial,

  • Multi-Family,

  • Hotel,

  • Self-Storage,

  • Mixed-Use  

  • Mobile Home Parks.

Loan Amount:

  • $500,000 to $100,000,000 USD

Loan Term:

  • Up to 5 year term

Amortization:

  • Typically Interest Only

Loan to Value/Cost:

  • Up to 90% of Appraised Value or Cost

Minimum DSCR:

  • 1.0x

Origination Fee:

  • Typically 2% – 4% of Loan Amount

Expense Deposit:

  • Amount sufficient to cover third party reports.  May vary according to transaction.

Sponsor/Borrower:

  • Creditworthy individual(s) or entity with sufficient liquidity and net worth.

Recourse:

  • Both recourse and non-recourse options available.  Non-recourse transactions will potentially include the exception of industry standard “bad boy” carve outs.

Assumability:

  • Permitted subject to approval and an assumption fee.

Prepayment:

  • Determined on a case-by-case basis

 

Typical Uses: 

  • Acquisitions,

  • Pre-Development,

  • Construction,

  • Recapitalization,

  • Refinancing,

  • Liquidity Management,

  • Asset/Liability Management,

  • Gap Financing

May be structured as preferred equity and LTV/LTC can increase up to 100% with Synergy Capital Markets Joint Venture.

 

 Synergy Capital Markets

9453 De Soto Avenue

Suite M

Chatsworth, California 91311
 

CONTACT US

Synergy Capital Markets, is an institutional alternative real estate finance investment adviser, investor and underwriter. Synergy Capital Markets does not offer, and does not offer to provide any broker dealer or market maker services. Synergy Capital Markets operates this website at www.SynergyCapitalMarkets.com (referred to as the “Website”). By accessing this Website and any pages thereof, you agree to be bound by its Terms of Use and Privacy Policy. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. We do not provide financial planning services to individual investors. Synergy Capital Markets does not provide tax advice and does not represent in any manner that the outcomes described herein will result in any particular tax consequence. Prospective investors should conduct their own due diligence, not rely on the financial assumptions or estimates displayed on this Website, and are encouraged to consult with their own financial advisor, attorney, accountant, and any other professional that can help you / them to understand and assess the risks associated with any real estate investment opportunity. Full Disclosure

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