For some borrowers, mezzanine financing has become a great solution to a recurring problem. Mezzanine financing can provide the additional dollars and higher leverage that today’s borrowers need to meet their financing goals.
Traditionally, mezzanine financing has been complicated and expensive, but PNC ARCS’ Mezzanine Financing Program simplifies the process by integrating it with our existing loan origination platform. Our funds are provided by our in-house mezzanine affiliate so there is no third-party approval required. In short, we can provide “one stop shopping” so you can minimize transaction costs and risk by eliminating the need for a third-party lender.
We specialize in providing short-term mezzanine financing that is very different from what our competitors provide. We aren’t after double digit yields and we don’t want to tie you down. Instead, we want to help you take your property to the next level so you can refinance through one of our many highly competitive takeout loan programs.
PNC ARCS can tailor a mezzanine loan that fits your needs in today’s world, and we offer lower rates, much more flexible prepayment terms, and smaller loan amounts (as little as $500,000) than other mezzanine lenders. We can provide mezzanine financing in combination with most of our permanent financing programs, and in some cases we can combine our mezzanine financing with an existing third-party mortgage.
Beyond the benefits of any specific lending product, PNC ARCS’ expertise and unwavering commitment to extraordinary customer service are what set us apart from the rest. And with specialists in affordable housing, seniors housing, student housing, manufactured housing communities, mezzanine/bridge financing, FHA multifamily, and capital markets, we can help meet your most critical financial and timing needs. No one delivers more.
Product overview
Eligibility Any multifamily property that is eligible under any of PNC ARCS’ permanent financing products is eligible for mezz financing.
Loan amounts $500,000 minimum. $5 million maximum.
Maturity Up to 5 years
Interest rates Competitive rates quoted daily
Combined debt service coverage ratio 1.10x minimum
Combined loan to value
90% maximum
Security Pledge of LP or LLC interests or second mortgage
Personal recourse Non-recourse with standard Carve-Outs