Hotels and Resort Preferred Equity and Mezzanine Financing

Preferred Equity and Mezzanine

For Owners and Buyers of Franchised and Boutique Hotel and Resort properties, ParkSide Real Estate Capital will structure a Preferred Equity or Mezzanine piece as part of the financing package in conjunction with a First Mortgage, depending on the transaction.

Using a First Mortgage and a Junior piece from the same Institution allows for easier legal paperwork, Intercreditor agreements and a smooth closing. With a single Institution understanding the needs and risks associated with the transaction, the closing process is streamlined.

Products Offered

2-5 Year Term Preferred Equity
1-3 Year Term Mezzanine

Features

Maximum LTV not to exceed 90% of New Capitalization
Minimum 9% IRR. Returns depend on transaction risk.
Flexible Structure with back end returns feasible
Spread based on 30 day LIBOR
Typically Non-Recourse

Minimum Mezzanine and Preferred Equity piece not to be less than $ 10,000,000 unless part of a larger First Mortgage. Large deal sizes preferred.