A RAIT mezzanine loan is a less expensive alternative to equity and is tailored to meet the financing needs of the borrower by filling the gap between existing first mortgage financing and traditional levels, turning equity into tax free cash, and increasing potential buying power.

Mezzanine Loan Characteristics

Eligibility
Commercial Real Estate (Office, Multi-family, Retail, Light Industrial)

Typical Loan Amount
$250,000 to $30,000,000

Maturity
Up to 10 years

Interest Rates
Competitive Pricing (varies by transaction)

Combined Debt Service Coverage Ratio
Minimum Coverage of 1.10x

Combined Loan to Value
Up to 90%

Security
Assignment of Partnership Interests or Second Mortgage

Personal Recourse
Non-recourse with Standard "carve outs"

Exit Fees
Typically 1.00% (negotiable)

Origination Fees
Typically 1.00% to 2.00% (varies by transaction)

Third Party Fees
Includes Appraisal, Engineering, and Environmental Reports

Intercreditor Agreement
Negotiated Intercreditor Agreement in place with Senior Lender