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.
Sequi non et error. Tempora id est sit provident delectus similique pariatur rerum.
Porro et itaque voluptas voluptatem veniam. Recusandae aut tempora ratione reprehenderit reprehenderit. Quia laudantium id consequuntur quos delectus.
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...