Capital behind the senior loan, for owners who need more proceeds than a first mortgage provides.
What is mezzanine financing?
Mezzanine financing is a loan that sits behind the senior mortgage and fills the gap between that loan and the owner's equity. Bravo's mezzanine loans are for multifamily, assisted living and skilled nursing properties, from $500,000 to $20 million, interest only for up to 36 months, and secured by a pledge of the ownership interests in the property-owning entity.
Bravo's mezzanine program is often paired with bridge financing from its affiliate, Bravo Property Trust. One team underwrites both loans, which is why Bravo is frequently "first to fund."
$20M
Maximum mezzanine loan, starting at $500,000
36 mo
Term of up to 36 months, interest only
One team
Senior and mezzanine loans underwritten together
How mezzanine fits in the capital stack
01
Senior loan
The first mortgage on the property, often a bridge or construction loan from Bravo Property Trust. It is repaid first.
02
Mezzanine loan
Bravo's loan behind the senior loan, secured by the ownership interests instead of the property itself.
03
Owner's equity
The sponsor's own capital. Mezzanine reduces how much equity the owner has to put in.
Terms at a glance
- Eligible properties
- Multifamily, assisted living and skilled nursing
- Loan amount
- $500,000 to $20 million
- Term
- Up to 36 months, interest only
- Security
- Pledge of the ownership interests in the property-owning entity
- Recourse
- Typically non-recourse for multifamily, with standard carve-outs; full recourse may apply to other property types
- Costs and deposit
- Borrower pays due diligence and transaction costs; $15,000 legal deposit at term sheet
When owners use Bravo mezzanine
Buying with a proceeds gap
The senior loan covers most of the price, and mezzanine covers part of the rest, so less equity is needed to close.
Paired with a Bravo bridge loan
Bridge and mezzanine underwritten together by one team, for a faster answer and one closing.
Senior care operators
Assisted living and skilled nursing owners who need extra capital behind the first loan while the business plan plays out.
Mezzanine financing: common questions
- Does Bravo offer mezzanine financing?
- Yes. Bravo offers mezzanine financing for multifamily, assisted living and skilled nursing properties where additional capital is needed behind senior debt.
- How is mezzanine different from a bridge loan?
- A bridge loan is a first mortgage on the property. A mezzanine loan sits behind the senior loan and is secured by a pledge of the ownership interests in the property-owning entity.
- How much can I borrow with mezzanine?
- Bravo's mezzanine loans range from $500,000 to $20 million.
Need more proceeds than your senior loan provides?
Tell us about the property and the capital you need. We'll size the senior loan and mezzanine together.
