Mezzanine Loans in Illinois
Browse 8 lenders offering mezzanine loans in Illinois. Compare rates, requirements, and loan programs — then connect directly.
Who are the Mezzanine lenders in Illinois?
8 lenders offering mezzanine loans to borrowers in Illinois.
Acore Capital
New York, NY
Commercial real estate finance company providing bridge, mezzanine, and preferred equity. $20B+ in originations. Institutional-quality deals.
CBRE Capital Markets
Dallas, TX
Global CRE services and capital markets. Arranges debt and equity for all commercial property types.
Goldman Sachs
New York, NY
Major CMBS conduit originator. Large-scale commercial mortgage financing and mezzanine debt.
Greystone
New York, NY
Full-service commercial real estate lending platform. Agency, bridge, mezzanine, and permanent financing. Top Freddie Mac and FHA lender.
JLL Capital Markets
Chicago, IL
Global commercial real estate services firm. Debt placement, equity advisory, and investment sales across all property types.
LoanCore Capital
Hartford, CT
Transitional commercial real estate lender. Bridge and mezzanine debt for value-add and repositioning strategies.
Morgan Stanley
New York, NY
Top CMBS originator. Large commercial real estate lending and securitization.
Walker & Dunlop
Bethesda, MD
Major commercial real estate finance company. Multifamily specialist. Agency, bridge, and mezzanine lending.
How do mezzanine loans work in Illinois?
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 Illinois, 8 lenders currently offer Mezzanine financing with loan amounts from $1M to $100M and rates typically ranging from 6.75% - 11.97%.
What does the Illinois market look like?
Illinois benefits from Chicago's role as a global financial center and the nation's primary inland logistics hub, with O'Hare Airport and extensive rail infrastructure. The state has one of the most diversified economies in the country.
Illinois has some of the highest commercial property tax rates in the nation, particularly in Cook County, where the assessment methodology for commercial properties applies a higher multiplier than residential, significantly impacting NOI. Cook County's triennial reassessment cycle and appeals process are critical for CRE investors to understand, as successful appeals can materially improve returns. Chicago's 140+ Opportunity Zones and numerous TIF districts offer substantial tax incentives, and the city's affordable rents relative to coastal gateway cities have attracted growing tech and life sciences tenants.
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
What are the pros and cons?
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
Frequently asked questions about mezzanine loans
What is a mezzanine loan in real estate? ▼
How is mezzanine debt different from preferred equity? ▼
Do senior lenders have to approve mezzanine debt? ▼
How small can a mezzanine loan be? ▼
Where can I find mezzanine loans by city in Illinois?
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