Mezzanine Loans

Hazelton Financial provides mezzanine financing to real estate developers who require additional equity to secure construction loans from banks or other institutional lenders. Typically our financing consists of a loan and/or guarantee to the construction lender, secured by the project but subordinated to the senior lender(s). Hazelton finances both residential and commercial projects.

Factors we consider when evaluating mezzanine financing requests are:

• Well located projects in strong markets
• Meaningful cash equity contribution by the borrower
• Collateral security
• Healthy profit margins
• The developer’s experience
• Loans up to $15 million
• Annual returns of approximately 30%
• Terms of 6 to 24 months
• A defined exit strategy