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Mezzanine Loans in West Palm Beach, FL

Find lenders offering mezzanine loans in the West Palm Beach, including Boca Raton, Delray Beach, Jupiter, 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 West Palm Beach commercial real estate market look like?

West Palm Beach has undergone a dramatic transformation from a secondary South Florida market into a premier destination for financial services firms, with Goldman Sachs, Elliott Management, and Point72 establishing offices along the Clematis Street and Flagler Drive waterfront corridors. The city's downtown has seen a surge in Class A office construction and adaptive reuse projects, while the surrounding Palm Beach County markets of Boca Raton, Delray Beach, and Jupiter attract a mix of corporate users and family offices. Industrial demand in the western portions of the county, particularly along Southern Boulevard and the Turnpike, has increased as South Florida's logistics footprint expands northward. Palm Beach County's high-net-worth population supports luxury retail and hospitality CRE at levels disproportionate to its metro size.

Key Economic Drivers

  • Financial firm relocations from New York, including Goldman Sachs and Elliott Management
  • Family office and wealth management cluster along the Palm Beach County coastline
  • Boca Raton and Delray Beach office and mixed-use expansion along Federal Highway
  • Scripps Research Institute and Max Planck Florida driving life sciences demand in Jupiter

Market Insight

Palm Beach County's commercial rents have increased sharply as hedge funds and private equity firms bid for limited Class A space downtown, with some lease rates rivaling Brickell — a reversal of the historical discount this market carried relative to Miami-Dade.

How do mezzanine loans work in West Palm Beach, Florida?

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 West Palm Beach metro area, borrowers can access 8 lenders offering Mezzanine financing, including Boca Raton, Delray Beach, Jupiter, 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 West Palm Beach FAQ

How many Mezzanine lenders serve West Palm Beach, FL?
There are 8 lenders offering mezzanine loans in the West Palm Beach metro area. Loan amounts typically range from 1000K to 100M with rates from 6.75% - 11.97%.
What are Mezzanine loan rates in West Palm Beach?
Mezzanine loan rates in West Palm Beach 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 West Palm Beach-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.

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