Mezzanine Debt
Kismet Kapital structures and places mezzanine financing for commercial real estate nationwide — sourcing senior debt and complementary structured capital across asset classes.
- Typical Leverage
- Up to 80–85% combined LTC
- Typical Term
- Co-terminus with senior, typically 2–7 years
- Recourse
- Non-recourse with intercreditor
- Initial Read
- Within 48 hours
Overview
Mezzanine debt is structured behind senior debt and secured by an equity pledge in the borrower entity. It enables sponsors to reach total leverage that exceeds what a senior lender will provide.
Kismet Kapital maintains direct relationships with banks, life companies, agencies, debt funds, CMBS desks, and private credit groups across the U.S. Capital is sourced based on asset, business plan, and sponsor profile.
Underwriting focuses on in-place income, sponsor track record, market fundamentals, and the strength of the business plan. Capital structures are tailored to the specific risk profile of each transaction.
Financing challenges
- Sizing mezzanine proceeds against in-place income, projected stabilization, and exit strategy.
- Engineering a capital stack that aligns sponsor economics with lender constraints.
- Negotiating commercial terms — pricing, recourse, reserves, and covenants — to protect the business plan.
Capital solutions
- Acquisition top-up behind senior debt
- Construction sub-debt
- Recapitalization and partner buyout
- Bridge-to-stabilization plans
- Direct outreach to relevant institutional lenders and equity partners.
- Term-sheet negotiation, structuring, and execution support through closing.
Frequently asked questions
What is a mezzanine loan?
Mezzanine debt is structured behind senior debt and secured by an equity pledge in the borrower entity. It enables sponsors to reach total leverage that exceeds what a senior lender will provide.
What leverage and term are typical for mezzanine debt?
Mezzanine Debt typically size to Up to 80–85% combined LTC with terms of Co-terminus with senior, typically 2–7 years. Recourse is non-recourse with intercreditor.
How long does a typical CRE financing process take?
Bridge and structured executions typically close in 30–60 days. Permanent and agency debt typically close in 45–75 days. Construction and JV equity transactions often run 60–120 days depending on diligence scope.
What documents are required to start?
An initial review typically requires a deal summary or OM, sponsor bio, sources & uses, an underwriting model or rent roll, and any third-party reports available. Kismet Kapital returns a structured read within 48 hours.
How does Kismet Kapital approach mezzanine debt for commercial real estate?
Kismet Kapital builds a tailored capital plan, identifies the most likely capital sources, runs a competitive process, and negotiates commercial terms — staying engaged through structuring, documentation, and closing.
Engage
Ready to structure your next deal?
Submit your transaction or schedule an introduction call. Confidential review within 48 hours.