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Mezzanine Loans in Phoenix, AZ

Find lenders offering mezzanine loans in the Phoenix, including Scottsdale, Tempe, Mesa, and surrounding areas. Compare rates, terms, and programs from 8 lenders.

Lenders
8
Typical Rate
10% - 18%
Down Payment
Reduces equity to 5-15% total
Term
1-7 years
Closing Time
30-60 days

Phoenix Commercial Real Estate Market

Phoenix is one of the nation's fastest-growing major metros and has become a top-tier market for industrial, multifamily, and data center investment. The Camelback Corridor and Scottsdale Airpark are the premier office submarkets, while the West Valley around Goodyear, Buckeye, and Surprise has seen explosive industrial and logistics development along the I-10 freeway. TSMC's semiconductor fabrication campus in north Phoenix and Intel's Chandler campus have positioned the metro as a domestic chipmaking hub, generating demand for supplier facilities and workforce housing. The Tempe Town Lake area and downtown Phoenix around Roosevelt Row continue to densify with mixed-use projects targeting the region's growing tech and creative workforce.

Key Economic Drivers

  • TSMC semiconductor fabrication facility in north Phoenix (over $40 billion investment)
  • Intel's Ocotillo campus in Chandler and related semiconductor supply chain
  • Phoenix Sky Harbor International Airport logistics and distribution hub
  • Banner Health, Mayo Clinic Arizona, and expanding healthcare systems

Market Insight

Arizona imposes a Transaction Privilege Tax on commercial lease income, functioning as a gross receipts tax on rental revenue that landlords must build into their underwriting, with combined state and city rates in Phoenix reaching approximately 2.3%.

Mezzanine Loans in Phoenix, Arizona

Mezzanine financing sits between senior debt and equity in the capital stack. It allows borrowers to increase leverage beyond what a first mortgage provides, reducing the equity needed for a deal. Secured by a pledge of the borrower's ownership interest rather than a lien on the property. In the Phoenix metro area, borrowers can access 8 lenders offering Mezzanine financing, including Scottsdale, Tempe, Mesa, and surrounding areas. Loan amounts typically range from $1M to $100M with rates from 10% - 18%.

Who Should Consider Mezzanine Loans?

  • Reducing equity requirement
  • Large acquisitions
  • Development projects
  • Recapitalizations

Key Requirements

  • Strong sponsor track record
  • Viable business plan
  • Senior lender approval for subordinate debt
  • Adequate debt service coverage for total debt

Advantages

  • Reduce equity needed
  • No lien on property (pledge of ownership)
  • Flexible structures
  • Can be interest-only

Considerations

  • High interest rates
  • Subordinate position = higher risk
  • Requires senior lender approval
  • Complex documentation

Mezzanine Loans in Other Arizona Cities

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