Mezzanine

WNMC fills the financing gap.

WNMC Mezz can bridge the difference between the senior debt and the equity required for a deal, especially in cases where the senior debt is limited by loan-to-value (LTV) or debt service coverage ratio (DSCR) constraints.

Mezzanine financing is a type of financing that can be used in commercial real estate deals to increase the leverage and returns of the investors.

Mezzanine financing is a form of subordinated debt that is secured by a pledge of equity interest in the property or the borrowing entity.

Mezzanine financing can provide several benefits for commercial real estate investors, such as;

Mezzanine financing can be used to fund value-add or opportunistic strategies that require more capital than traditional lenders are willing to provide.

Enhancing returns.

Mezzanine financing can increase the internal rate of return (IRR) and equity multiple of the investors by reducing the amount of equity needed in the deal. Mezzanine financing typically has a higher interest rate than senior debt, but lower than the expected return on equity. By using mezzanine financing, investors can achieve a higher return on their equity investment by leveraging the spread between the cost of mezzanine debt and the return on equity.