Multifamily investors have lots of options to choose from if they want to take out a mezzanine loan in addition to the primary mortgage on their property.
“There are more and more participants willing to make mezzanine loans,” says Ari Hirt, managing director in the debt and equity finance group at Mission Capital Advisors, a capital markets solution provider based in New York City.
The competition between these lenders is keeping interest rates relatively low for mezzanine loans, even though short-term interest rates overall are rising. Lenders are also offering creative terms and the highest amount of leverage that banking regulations will allow.
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