Mezzanine financing

The Firm has been involved in a number of mezzanine financings; while we have usually represented the senior lender or the mezzanine borrower, we have also represented the Mezzanine lender in transactions.

Representative Experience

• Hotel 71 Mezz Lender L.L.C. loan to Chicago H&S Senior Investors, LLC ($27 million mezzanine loan secured by equity in the owner of a hotel in Chicago for the purpose of converting the hotel into condominiums).
• BlackRock Financial loan to Royal Palm Senior Investors, LLC ($21.5 million mezzanine loan secured by equity in the owner of the Royal Palm Crowne Plaza Resort in Miami Beach, Florida).
• Heller Financial loan to CQW Associates, L.P. ($8 million mezzanine loan secured by partnership interests in the owner of a real estate project).
• Representation of borrower in financing 65 healthcare properties through $285 million securitized mortgage and mezzanine loan.
• Representation of client in workout of $30 million of mezzanine loans affecting residential lots in Arizona.
• Representation of borrower in $175 million securitized construction mortgage and mezzanine loan.
• Representation of a borrower which owns over 250 real estate sites in securing a $250 million mezzanine loan.
• Representation of a purchaser in the purchase of a portfolio of approximately 170 healthcare facilities in 19 states, which also included negotiation of multiple layers of debt totaling over $1.1 billion in mortgage and mezzanine financing.
• Representation of a purchaser in the acquisition of approximately 260 healthcare facilities in over 20 states, which also included the negotiation of multiple layers of debt including a $1.2 billion dollar mortgage loan and $200 million dollar mezzanine loan.
• Representation of a borrower in obtaining construction loan with subordinate mezzanine financing in excess of $100 million for development of recently acquired air rights in New York City.
• Representation of a mezzanine lender in various construction financing transactions.
• Representation of a senior lender in mezzanine transaction.

The Firm also has a great deal of experience negotiating intercreditor agreements for lenders that hold the senior lien in a wide range of financing transactions, including mezzanine financing where the mezzanine lender is structurally subordinated to the lender that has a lien on the property owner’s assets. We are also knowledgeable about the industry-standard form of intercreditor agreement for mezzanine loans.