Private Lender Center (PLC) provides access to structured capital solutions for real estate investors, developers, and sponsors who require additional leverage beyond senior debt.
When a first mortgage does not fully cover a transaction, mezzanine financing and preferred equity can bridge the gap between senior debt and sponsor equity—allowing borrowers to preserve liquidity, increase purchasing power, and optimize their capital structure.
PLC connects clients with active capital providers funding commercial real estate opportunities across a broad range of asset types, including stabilized assets, value-add repositioning, and ground-up development.
Mezzanine financing is a form of junior debt that enhances leverage without replacing the senior mortgage. It sits between the senior lender and the sponsor’s equity in the capital stack.
Rather than a direct lien on the property, mezzanine lenders typically secure their position through a pledge of ownership interests in the borrowing entity
Key Characteristics:
Mezzanine financing is commonly utilized when senior lenders fund approximately 55%–70% of total project cost or value, leaving a capital gap that must be filled to complete the transaction.
Preferred equity is structured as an ownership investment rather than debt. It provides capital to the project in exchange for a priority return before common equity participates in profits.
This structure is often used when additional leverage is needed but senior lending restrictions limit further debt.
Key Characteristics:
Preferred equity is especially common in development and value-add transactions where flexibility and reduced cash contribution are critical to execution.
| Feature | Mezzanine Financing | Preferred Equity |
|---|---|---|
| Structure | Debt | Equity |
| Position in Capital Stack | Below senior loan | Above sponsor equity |
| Return Type | Interest-based | Preferred return |
| Collateral | Ownership pledge | Equity interest |
| Payments | Typically required | Flexible / contingent |
| Control | Limited | May include approval rights |
| Primary Purpose | Increase leverage | Reduce sponsor equity requirement |
We align each transaction with the right capital source based on key deal fundamentals, including:
When senior lenders are not able to fully fund a transaction, PLC structures and sources mezzanine financing and preferred equity solutions designed to bridge the gap and complete the capital stack.