Medallion Funds knows how to make difficult financing projects into simple ones, an expertise you can trust.
Our structured financing team is highly experienced and knows how to connect you to all options in the capital stack. Whether you seek to secure a bridge loan, mezzanine financing, construction financing and or preferred equity, we can navigate you beyond. Our network of lenders and investors nationwide combined with our knowledgeable consultants can help.
Benefits of working with Medallion Funds
We are always engaged with our lender partners and are prepared to handle opportunities as they arise. This means that when you come across an opportunity, rather than reacting to try to secure capital, we want to be involved and proactive with you from the beginning to help you structure the deal and place it with a lender. This way when you are ready to close, your transaction had been reviewed, approved and is ready to close.
MEZZANINE FINANCING AND PREFERRED EQUITY FOR COMMERCIAL PROPERTY
Medallion Funds through its vast network of lender partners offers many options in structured financing. Many of these options bring certainty of execution, such as Mezzanine Financing and preferred equity. Mezzanine financing is structured to increase leverage on commercial properties. Mezzanine loans allow the lender to go higher on the capital stack than what traditional debt would normally allow. This makes them ideal for recapitalization and or refinancing when the current amount owed is higher than what can be obtained through conventional lenders and traditional financing.
Another use of mezzanine financing is offsetting investor equity which can often be more expensive than debt. This is particularly the case when building commercial property from the ground up. Specifically, preferred equity is available when the first lien holder will not allow a secured second position and the Jr. lender uses shares of the borrower/LLC as collateral instead of the underlying real estate itself. This makes it a very expensive proposition for which an additional capital may be necessary to complete a project. Often, developers may run into negative carry which the cost of financing exceeds the earnings and loan principle. Mezzanine financing is a solid solution whereby a developer will avoid expensive loans or having to go back to partners and ask for additional capital for short falls. Key component of mezzanine financing is that the project must be stabilized.
Mezzanine Financing and Preferred Equity Terms
- Minimum Loan: $1MM
- Term: Coterminous with the first lien
- Leverage: Up to 90% LTV on stabilized property and 85% LTC on construction
- Amortization: Interest only
- Recourse: Non-recourse options available
Medallion Funds bridge loans offer certainty of funding execution. We offer structured financing options that works best for our clients and their unique financing needs. Moreover, once a property is ready to secure a permanent financing, we can assist our clients to convert their property financing into a permanent financing which is a long term, fixed rate solution.
We have partnered with some of the most dynamic and creative investors and lenders in the country to bring highly customized loan structures to our clients. Our goal is to ensure that you have the capital needed to re-stabilize your property, close a transaction in a timely fashion, CapEx when needed, Tenant improve or ear-out.
Some of the other options which you may consider bridge loans for:
- Auction Purchase
- Real Estate Owned (REO) Acquisition
- Traditional acquisition
- Portfolio Acquisition
- Distressed Debt Purchase
- Discounted Debt Payoff (DPO)
- Maturing Loan Refinances
Benefits of our bridge loans are but not limited to the following:
- Future funding facilities
- Fixed, Floating and Hybrid Options
- Term of up to 7 years
- Less than 1.0 debt Service Coverage Ratio may be feasible
- Up to 80% LTV
- Pre-payment Flexibility
- Loan amounts of $5 to $50 million
- Balance Sheet Lender
- Non-Recourse is available
- Responsible lending