Mezzanine 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.
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%.
Typical Loan Structure
$2 – 10 million
Single asset SPE
Generally 1-5 years
Good overall credit with sufficient liquidity
Generally Interest Only
Pledge of partnership by UCC or preferred
equity position. Additional credit enhancement (recourse, other collateral, letter of credit or other guarantees) possible.
Generally not permitted.
10%-12% Fixed. Accrual or participation
varies based on risk and terms.
Origination and exit fees to be determined.
Apartments, Office, Retail, Medical,
Industrial. No land or development.