WHAT WE DO

We actively seek preferred equity, mezzanine debt and
first mortgage opportunities in quality commercial
properties in growth markets throughout the country.

50Mezzanine Debt/ Preferred Equity

For many years, Rainier has specialized in developing creative financial solutions for property owners addressing loan maturities, ownership reorganizations and discounted payoff opportunities. As billions of dollars of commercial mortgage loans mature over the next five years, Rainier’s flexible and sophisticated financing strategies may be the solution you need.

Case Study

Owner of performing office property has a matured $14 million 70% LTV first mortgage under extension for 12 months while he shops replacement financing.   Although the property has performed well, new lenders are quoting 60% LTV with substantial pre-funded TI/LC reserves.   All other financing options available to the Owner require personal guarantees.  Rainier provides $3 million of new capital to fund the gap and the required TI/LC reserves on a non-recourse basis, with a current interest only pay rate of 10%. 

keyresults

Typical Loan Structure

Loan Amount
$2 – 10 million
Eligible Borrower
Single asset SPE
Loan Term
Generally 1-5 years
Sponsorship
Good overall credit with sufficient liquidity
Amortization
Generally Interest Only
Security
Pledge of partnership by UCC or preferred
equity position. Additional credit enhancement (recourse, other collateral, letter of credit or other guarantees) possible.
Minimum DSC
1.20
Maximum LTV
85%
Prepayment
Generally not permitted.
Interest Rate
10%-12% Fixed. Accrual or participation
varies based on risk and terms.
Lender Fee
Origination and exit fees to be determined.
Eligible Property
Apartments, Office, Retail, Medical,
Industrial. No land or development.