By Joshua Stein
Senior mortgage lenders have
plenty of money to lend today for the right projects - but still often not as
much as investors or developers would like. Mezzanine financing can fill
that gap and give all parties involved a great tool to make deals work.
But borrowers, mortgage lenders, and mezzanine lenders need to understand how
today's market expectations have changed.
I've invited Bruce Batkin, CEO
of Terra Capital Partners, a leading mezzanine lender, to share his knowledge
of the industry, and of how mezzanine loans are being structured and closed
right now, at a luncheon presentation sponsored by Mortgage Bankers Association
of New York. Bruce's presentation continues the MBA/NY series of
educational events, which I have chaired since 2008.
Bruce will discuss how
mezzanine loans can help finance new acquisitions and recapitalize existing
properties, and what deal terms mezzanine lenders demand today. He'll
start with pricing and proceeds, of course, but also talk about the terms and
structure of the debt stack. What guaranties will a mezzanine lender demand?
Where do problems arise in the relationship between a mezzanine lender
and a senior mortgage lender? What did we learn from the financial crisis
and "tranche warfare" between mortgage lenders and mezzanine lenders?
Bruce's company also originates
preferred equity deals and other types of subordinate debt. He'll talk
about those as well, and how their terms, structure, and pricing compare with
mezzanine financing.
The MBA/NY luncheon program
"Bridging the Gap: Mezzanine Financing" will take place on Thursday,
April 18, at Club 101, 101 Park
Avenue. Registration and networking start at
11:30 a.m. A buffet lunch will be served at 12:15 p.m. followed by a
luncheon presentation from 12:30 p.m. to 2:00 p.m.
If you would like to register,
please visit the MBA/NY website. You can also register the day of the
event, but MBA/NY offers discounts for early registration. I'm looking
forward to seeing you on April 18!