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BK-0910597

Mezzanine Financing

The cost and complexity of mezzanine financing have often hindered investors and their business plans.  In keeping with Venture's mission to simplify the lending process and to be a low cost provider.  Our mezzanine affiliates are integrated and provide "one stop shopping" for short term financing alternatives with several important distinctions that set it apart from competing mezzanine lenders.  We offer rates significantly lower than our competitors, with very flexible prepayment terms, and can consider mezzanine transactions as small as $750,000, a rarity among mezzanine lenders.  You can also combine mezzanine financing with Fannie Mae, bridge or conduit financing programs up to 90% of value.

Product Overview:

(For a Printable PDF of this program, please click here)

Eligibility                                                                                             Any multifamily or healthcare property that is eligible under any of ARC's permanent financing products is eligible for mezzanine financing

Loan Amounts                                                                                        $750,000 minimum.  $10 million maximum

Term/Amortization                                                                                Up to 10 year term

Interest Rate                                                                                        Competitive rates quoted daily

Debt service coverage ratio                                                                1.15x minimum (1.10x under special circumstances)

Loan to value                                                                                     85% maximum

Personal recourse                                                                                Varies by transaction

Prepayment                                                                                          Varies by transaction

Origination Fee                                                                                    1.5 - 2.0% / $25,000 minimum

Commitment Fee                                                                                   

Third Party Fees                                                                                    Includes legal, appraisal, engineering, and environmental reports.  Seismic reports and survey may also be required

Security                                                                                            Pledge of LP or LLC interests or second mortgage

Intercreditor Agreement                                                              Required

Taxes and Insurance Impounds                                                           

Assumability                                                                                       

Supplemental Mortgages                                                                   

Venture Placement Fee                                                                        1% to 2% dependent on property