Private Capital That Moves Projects Forward
At Estates of Elysium, we connect real estate developers and commercial investors with strategic capital to fuel growth, acquisitions, and ground-up development. Our private equity solutions—particularly mezzanine financing and preferred equity—are designed for ambitious projects that need flexible funding between senior debt and common equity.
What is Mezzanine Financing?
Mezzanine capital is a hybrid solution that fills the gap between traditional loans and full equity investment. It’s often structured as subordinated debt or preferred equity, and is commonly used for:
Expansions
Acquisitions
Recapitalizations
Transitional development projects
This financing gives you access to higher leverage while preserving ownership and control—ideal for sponsors with a strong vision and execution plan.
Why Developers Use Mezzanine Capital
Flexible Capital Structure
Positioned between senior debt and equity, mezzanine loans unlock funding without immediate equity dilution.Higher Leverage
Achieve up to 90% total leverage when mezzanine financing is combined with senior debt—boosting ROI while reducing capital outlay.Equity Kickers
We offer structures that align investor and borrower interests through equity participation options like warrants or profit shares.Delayed Repayment
Many of our mezzanine solutions come with bullet maturity, meaning no principal payments until the end of the term.Creative Payment Terms
Choose from cash interest, PIK (Payment-In-Kind) structures, or a combination of both—tailored to your project’s cash flow.
Key Terms & Considerations
Private Equity & Mezzanine Capital Designed Around the Deal
Our funding is structured around your project’s potential—not just your balance sheet. That means more flexibility, faster closings, and aligned capital to move your commercial deal forward.
Features and Details
Rates Starting At: 6.00% (Interest-Only or PIK Options Available)
Loan Size: $10M – $1B
Leverage Available: Up to 90% Combined Loan-to-Cost (CLTC)
Equity Participation: Optional Profit Share / Warrants / Ownership Interest
Payment Terms: Interest-Only or Bullet Maturity
Term Lengths: 12, 24, or 36 Months (Extensions Negotiable)
Amortization: None (Full repayment at maturity)
Collateral: Typically unsecured or second-position lien
Who We Typically Work With
We fund experienced sponsors and operators who:
Own or control the property (under contract or closed)
Are pursuing ground-up, value-add, or stabilized commercial projects
Have a clear exit strategy, such as refi, sale, or long-term hold
Possess a strong track record or a qualified team behind them
Can demonstrate project feasibility, upside, and market fit
Technology
Streamline your commercial project with data-driven financing,
Preferred equity isn't about speed — it's about strategy. At Estates of Elysium, we specialize in matching experienced sponsors with aligned capital partners through a curated, data-driven process. Our goal is to place equity that strengthens your project and supports long-term success — not just fill a funding gap.
Strategic Capital Placement
Our deep relationships with family offices, private equity groups, and institutional investors ensure that sponsors are paired with capital sources that match their vision, timeline, and risk profile.
Data-Driven Deal Positioning
Using current market intelligence, investor sentiment, and underwriting insights, we help sponsors position their deals for optimal capital placement.
Curated Matchmaking
We take time to understand each sponsor’s background, the strength of the project, and market fundamentals — then tailor an equity structure that works.
Efficient, Transparent Process
Our tech-enabled process streamlines documentation, keeps communication flowing, and gives sponsors real-time visibility into progress.
What You Can Expect from Our Capital Solutions
We’re flexible, transparent, and focused on alignment. Here’s what our private capital typically looks like:
Position in Capital Stack: Subordinate to senior debt; sits above common equity
Loan Size: Flexible based on project scope and equity position
Structure: Mezzanine (unsecured or secured) or Preferred Equity
Interest Rates / Returns: Higher than traditional debt, based on risk
Repayment Terms: Interest-only or bullet maturity (no principal during term)
Equity Participation: Optional profit-sharing, warrants, or ownership interest
Collateral: Often unsecured; terms depend on borrower profile
Maturity: Typically 3 to 7 years
Transferability: Mezz debt is often freely transferable; preferred equity may carry conditions
Resources
Article: Structuring Mezzanine Financing for Value-Add Projects
Description: Dive into optimal financing structures for transitional assets—how to blend mezzanine with preferred equity, set waterfall tiers, and align mezz returns with sponsor upside.
Frequently Asked Questions
Answers to Your Mezzanine Financing Questions
Q: How does preferred equity differ from mezzanine debt?
A: Preferred equity typically includes payment priority and rights to force sale in default, plus an equity upside ("kicker"), unlike mezzanine debt which is collateralized by the borrower’s equity and usually lacks upside participation.
Q: What types of projects qualify for mezzanine or preferred equity financing?
A: Ground-up construction, value-add redevelopments, acquisitions, and recapitalizations across multifamily, mixed-use, retail, industrial, and select hospitality. The project should have strong market fundamentals, a feasible business plan, and experienced sponsorship.
Q: Do I need to have the property under contract before applying?
A: We prefer projects that are either under contract or already owned. This shows commitment and allows us to evaluate the opportunity with real terms, timelines, and a clear capital stack.
Q: How much leverage can I get using mezzanine capital?
A: When layered with senior debt, mezzanine financing can bring total leverage up to 85–90% of total project costs—helping you preserve cash and scale faster.