Mezzanine debt will allow the total financing package to go to higher leverage levels than conventional financing. These loans can be provided for existing properties or properties under construction. Mezzanine debt can be in the form of a freestanding loan, which is junior to the senior bridge or permanent loan, and might be secured by a second mortgage or a pledge or partnership interests. Mezzanine financing can also be imbedded in the senior mortgage as a “B Note.� There are many ways for mezzanine loans to be structured including pay and accrue features, exit fees, participations, interest only, flexible prepayments, recourse/non-recourse and additional fundings during the loan term. Rates will vary widely depending on the leverage level, degree of risk, property type and location.