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.