News June 05, 2020
Mezz Lenders Eye Higher Rates, Lower Risk
Commercial Mortgage Alert reports that high-yield lenders will likely see increased demand for subordinate debt once the commercial real estate market resumes activity. Madison Realty Capital Managing Principal, Co-Founder Josh Zegen explained “I prefer taking out the first lender, upsizing the deal and working to address the various issues.” Mezzanine lenders could also be a crucial source of rescue capital for borrowers dealing with cost overruns on construction or redevelopment projects, he added. Founded in 2004, MRC has closed on approximately $12 billion of transactions in the multifamily, retail, office, industrial and hotel sectors.