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Mezzanine Loans in Colorado Springs, CO

Find lenders offering mezzanine loans in the Colorado Springs, including Fountain, Manitou Springs, and surrounding areas. Compare rates, terms, and programs from 8 lenders.

Lenders
8
Typical Rate
6.75% - 11.97%
Down Payment
Often 10-25% sponsor equity
Term
5-10 years
Closing Time
30-60 days

What does the Colorado Springs commercial real estate market look like?

Colorado Springs' CRE market is heavily influenced by the military, with five major installations including Fort Carson, Peterson Space Force Base, Schriever Space Force Base, and the U.S. Air Force Academy generating consistent demand for office, retail, and multifamily properties. The Interquest Parkway corridor in the north has become the metro's fastest-growing commercial area, with new Class A office, hotel, and retail development. Downtown Colorado Springs has experienced a revival anchored by the U.S. Olympic & Paralympic Training Center, the Weidner Field stadium, and the Pikes Peak Summit Visitor Center. The Powers Boulevard corridor on the east side serves as a secondary retail and commercial growth node driven by residential expansion.

Key Economic Drivers

  • Fort Carson Army installation and Peterson and Schriever Space Force Bases
  • U.S. Space Command headquarters and related defense contractor offices
  • Centura Health Penrose-St. Francis and UCHealth Memorial Hospital campuses
  • U.S. Olympic & Paralympic Training Center and associated sports tourism

Market Insight

The designation of Colorado Springs as the permanent home of U.S. Space Command has anchored long-term defense sector growth, with aerospace contractors expanding office footprints in the Interquest and Briargate submarkets to support space-related programs.

How do mezzanine loans work in Colorado Springs, Colorado?

Mezzanine loans are subordinate real estate loans secured by a pledge of the borrower's ownership interests rather than a mortgage lien on the property itself. Borrowers use them when the senior lender's proceeds stop short and they want to reduce the common equity check. In the Colorado Springs metro area, borrowers can access 8 lenders offering Mezzanine financing, including Fountain, Manitou Springs, and surrounding areas. Loan amounts typically range from $1M to $100M with rates from 6.75% - 11.97%.

Who should consider mezzanine loans?

  • Large acquisitions with a capital gap
  • Recapitalizations
  • Senior-loan executions that stop short on proceeds
  • Experienced sponsors managing intercreditor terms

What are the key requirements?

  • Usually at least a $1M capital need
  • Strong sponsor track record and exit plan
  • Senior lender consent plus an intercreditor agreement
  • Debt service and leverage that still work for the full stack

Advantages

  • Can reduce the common equity check
  • Usually no direct property lien
  • Often structured interest-only
  • Can add proceeds above a senior mortgage

Considerations

  • Usually the priciest layer in the stack
  • Senior lender approval is typically required
  • Intercreditor terms can limit remedies
  • Often not a fit for small-balance deals

Mezzanine Loans in Colorado Springs FAQ

How many Mezzanine lenders serve Colorado Springs, CO?
There are 8 lenders offering mezzanine loans in the Colorado Springs metro area. Loan amounts typically range from 1000K to 100M with rates from 6.75% - 11.97%.
What are Mezzanine loan rates in Colorado Springs?
Mezzanine loan rates in Colorado Springs typically range from 6.75% - 11.97%, though exact rates depend on factors like your credit score, the property's cash flow, and loan-to-value ratio. Down payments usually run Often 10-25% sponsor equity, and closing can take 30-60 days. Compare multiple Colorado Springs-area lenders to find the best terms for your deal.
What is a mezzanine loan in real estate?
It is subordinate capital that sits between the senior mortgage and the sponsor's common equity. Instead of taking a mortgage lien, the mezz lender usually takes a pledge of the ownership interests in the property-owning entity.
How is mezzanine debt different from preferred equity?
Mezzanine debt is a loan with a maturity date and UCC foreclosure rights against the pledged ownership interests. Preferred equity is an ownership investment with negotiated control rights and no UCC foreclosure remedy.
Do senior lenders have to approve mezzanine debt?
Usually yes. The senior lender commonly requires an intercreditor agreement that sets cure rights, notice rules, and what happens if the mezz lender tries to enforce its remedies.
How small can a mezzanine loan be?
Published market tables still show mezzanine programs starting around $1 million. Smaller deals usually end up with more equity, a bridge loan, or a different senior structure instead.

Where else can I find mezzanine loans in Colorado?

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