3-7-12
When is tiny huge? When $250,000 of mezzanine debt is funded behind a $23,000,000 senior note. George Smith Partners is originating stabilized fixed-rate CMBS financing with a Wall Street conduit who is placing their own internal mezz-debt behind their senior tranche. The note and rate are blended in-house, reducing the duplication of paperwork and accounting for the Borrower. This capital provider will fund as low as $250,000 of mezzanine debt to 85% – 90% of the total capital stack. The junior piece will be held on-book and not securitized with senior note. Mezz-debt rates vary based on size, asset type, leverage, etc. but the total blended coupon averages less than 5% fixed for 10 years as of today’s indexes.