Top 5 Mezzanine Finance Companies for Real Estate

  • June 13, 2025

In today’s evolving lending landscape, traditional financing often falls short of meeting the full capital needs of commercial real estate (CRE) developers and business owners. That’s where mezzanine debt comes in—a strategic funding solution that bridges the gap between senior loans and equity. As access to bank financing becomes more selective, savvy borrowers are turning to mezzanine lenders for fast, flexible capital that supports acquisitions, expansions, and ground-up developments. Especially in capital-intensive sectors like hospitality and owner-occupied real estate, mezzanine financing offers the leverage and structuring versatility to move projects forward without sacrificing control. This blog explores the top mezzanine finance companies, key deal structures, and how to find the right lender to power your next CRE investment.

What Is Mezzanine Debt?

Mezzanine debt is a form of financing that fills the gap between senior debt and equity in a commercial real estate project. It’s often used when borrowers need additional capital beyond what traditional lenders will provide, but don’t want to give up ownership through equity. This hybrid funding typically comes from specialized mezzanine lenders who accept a higher level of risk in exchange for elevated returns. Because mezzanine debt is subordinated to senior loans, it often includes features like higher interest rates, equity participation, or warrants. For developers and investors, mezzanine financing is a powerful tool to boost leverage while retaining control over their assets.

Mezzanine financing works in commercial real estate financing as a financial gap solution. Let’s say you’ve covered 60% of a project’s cost with a bank loan and another 25% with your cash equity. To address the 15% gap in the project’s funding, you can turn to mezzanine financing instead of looking for another bank loan or raising more equity capital.

By and large, mezzanine financing can aid businesses in achieving their CRE goals through timely financial support. The first step in obtaining this solution is finding the right partner. Consider the following top mezzanine finance companies to find a partner that best aligns with your project’s needs.

Key Benefits of Mezzanine Financing for CRE Projects

Mezzanine financing offers several advantages for commercial real estate (CRE) developers looking to scale without diluting equity. First, it enables higher loan-to-cost ratios than senior loans alone, allowing sponsors to invest less of their own capital upfront. Second, mezzanine lenders often provide more flexible underwriting and faster closings than traditional banks. In many cases, the structure of mezzanine debt can be tailored to the cash flow profile of the project—such as interest-only payments or balloon structures. These benefits make mezzanine financing particularly attractive for complex or value-add developments in the hospitality and owner-occupied sectors.

How Mezzanine Lenders Evaluate Your Deal

Mezzanine lenders take a comprehensive approach to underwriting, evaluating both the asset and the sponsor’s track record. They typically look for projects with strong in-place or projected cash flow to support the additional debt service. Loan-to-value (LTV) and loan-to-cost (LTC) ratios are crucial metrics—mezzanine debt is often layered on top of senior loans up to 80–90% of the capital stack. Lenders also assess exit strategies, ensuring there’s a clear path to repayment through refinance or sale. The strength of the developer’s experience, equity contribution, and business plan all factor heavily into the approval process.

Top Mezzanine Lenders for Real Estate

Edgewood Capital Advisors

Edgewood’s provides a number of loan programs, including the Mezzanine Lending Program, which is designed to offer borrowers additional funding for ground-up development projects and transitional assets. Their lending team has experience working with senior lenders to ensure there are no issues with inter-creditor documentation and that each deal is properly structured.

NewSpring Foundation

NewSpring Foundation provides finance solutions to clients through four distinct strategies. These strategies focus on areas such as growth capital, healthcare, holdings, and mezzanine financing. The mezzanine finance company has experience partnering with business owners either individually or with other financial investors. The transaction types that NewSpring provides solutions for include liquidity, refinancings, management buy-outs, and more. In addition, NewSpring delivers unique insights into focus industries like business and customer service, and niche manufacturing and distribution.

Website: newspringcapital.com

Phone: (610) 567-2380

Prime Commercial Lending

Prime Commercial Lending has experience partnering with low- to mid-market companies in need of mezzanine financing solutions. The financing company provides clients with flexibility through several financing structures. Some of these structures include subordinated debt with or without warrants and equity investments in a client’s business. The CRE projects that Prime Commercial Lending has worked on previously are business acquisitions, growth capital, and management buyouts.

Global Capital Partners Fund

The team at Global Capital Partners Fund is dedicated to providing additional funding to clients who need quick and seamless solutions. As one of the top mezzanine finance companies, Global Capital works with clients with a proven track record. Additionally, the financing company’s objective in commercial financing is to provide long-term value to its partners.

FinanceBoston

FinanceBoston is a relationship-driven commercial real estate capital advisory firm that partners with business owners across the country. The financing firm provides partners with industry insights and commercial real estate debt and equity financing solutions. The FinanceBoston team offers mezzanine financing as a strategic solution to bridge the gap in a client’s project funding.

AVANA Capital: Fast and Flexible Equity Financing Alternative 

With over 150 years of combined experience, the AVANA Capital team aids borrowers in finding appropriate equity financial solutions. By specializing in niche industries such as commercial real estate, Avana Capital provides partners with unparalleled industry insights.

When partnering with AVANA Capital, the financing firm’s team takes the necessary time to understand your business’s complexity. What is the goal of your CRE project? What is your project’s expected timeline?

AVANA Capital creates a fast and flexible equity financing solution that best aligns with your unique needs with this knowledge. In addition, the AVANA Capital team guides you through the entire loan process.

This guidance helps ensure your business gains the support necessary so your CRE project can succeed. Thanks to AVANA Capital’s commitment to providing impactful financing solutions to clients, it is known as one of the top mezzanine finance companies in the United States.

Phone: 1 (877) 850-5130

Industry Trends & Outlook for Mezzanine Lending in 2025

As traditional lending tightens in response to interest rate volatility and bank risk appetite, mezzanine lenders are stepping in to fill the capital stack gap. In 2025, demand for mezzanine debt is expected to rise, particularly in commercial real estate sectors like hospitality, industrial, and mixed-use developments. Developers are increasingly turning to mezzanine financing as a flexible solution when senior debt covers only 60–65% of project costs. Meanwhile, private credit funds and non-bank lenders are expanding mezzanine portfolios, offering tailored deal structures to meet unique borrower needs. With more sophisticated underwriting and appetite for creative financing, the mezzanine market is poised to become a core component of capital planning in CRE deals.

Conclusion: Navigating Mezzanine Debt with the Right Lending Partner

Mezzanine financing can be a game-changer for commercial real estate projects that need flexible, growth-oriented capital solutions. Whether you’re bridging a funding gap, preserving equity, or accelerating a development timeline, partnering with experienced mezzanine lenders is essential. The right lender brings not only capital, but also strategic insight and speed to close—especially in complex sectors like hospitality and owner-occupied real estate. At Avana Capital, we specialize in structured debt solutions tailored to your project’s unique needs. If you’re exploring mezzanine debt options, let’s connect and build a financing strategy that supports your long-term vision.