mezz-pref-structurer

To structure mezzanine debt versus preferred equity, you map the CRE capital stack, slice LTV to align with senior debt capacity, and analyze risk metrics to determine the optimal subordinate capital placement.

Calculating last-dollar LTV and DSCR for a mezzanine placement involves mapping the entire capital stack and running cash waterfall models to assess risk metrics and downside sensitivity for the specific asset or portfolio.

Modeling intercreditor terms and standstill agreements for preferred equity requires mapping cure rights and cash management waterfalls, then applying scenario analysis to evaluate loss severity and downside sensitivity.

Yes, you can generate draft term sheets for both mezzanine debt and preferred equity simultaneously after completing the comparative exit analysis and calculating subordinate capital pricing, including PIK, accruals, and tax treatment.

Mezzanine pricing with PIK accrual directly impacts the overall WACC in a real estate deal by altering the cost of subordinate capital, which is evaluated alongside preferred equity to optimize the capital stack.

Running downside sensitivity and loss severity scenarios for a portfolio mezzanine gap requires inputting total capitalization and senior terms, then applying cash waterfall modeling to evaluate comparative exit outcomes.