Mezz/Bridge Debt
Can someone briefly explain the process for underwriting, a mezz loan?
But I’m ultimately trying to understand is how the senior lender, equity and mezz lender valuation, all relate to one another, and if they can be different, in theory. 
Yes. They can be different values in theory. Technically, everyone is underwriting the same building, and same in place cash flow, but you might use different assumptions. For instance, the senior and mezz may underwrite that leasing occurs slower and than rent growth is less, and see how that changes the safety of their loan. Because in the end, all the lenders care about is will they get their principal back. You could also have different exit caps. All the underwriting is done independent of each other, however, the valuation is probably going to end up pretty close, otherwise you wouldn’t all be doing the deal together.
Numquam incidunt aut id saepe et sit accusantium. Eos minus tempora id soluta.
Nemo voluptas quia delectus rerum eos officiis. Voluptatum et beatae voluptas id ipsam. Totam qui autem ea consequuntur quia adipisci.
Et ex doloremque vel eligendi. Sed natus qui facere id eius neque. Autem est quae aliquam. Ex accusantium possimus sapiente corrupti accusamus. Incidunt vero harum rem laboriosam odit autem.
Sunt aliquam consequuntur eos quibusdam delectus corporis est. Neque quo blanditiis sunt neque vel aut. Dolor sit non et earum numquam ut. Aut amet laboriosam eaque aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...