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Mezzanine Loans in Des Moines, IA

Find lenders offering mezzanine loans in the Des Moines, including West Des Moines, Ankeny, Ames, 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

Des Moines Commercial Real Estate Market

Des Moines is the insurance capital of the U.S., hosting the headquarters or major operations of Principal Financial Group, Nationwide, EMC Insurance, and over 80 other insurance and financial services companies, which anchor the metro's office market. The Western Gateway and East Village neighborhoods downtown have attracted adaptive reuse and new mixed-use development, while the Jordan Creek corridor in West Des Moines has emerged as the primary suburban office and retail hub. The metro has become a significant data center market, with Microsoft and Meta operating large campuses in Altoona and West Des Moines. Industrial demand centers on the U.S. 65 and I-80/I-35 interchange corridors, which offer central U.S. distribution positioning.

Key Economic Drivers

  • Insurance and financial services headquarters cluster including Principal, Nationwide, and EMC
  • Microsoft and Meta data center campuses in Altoona and West Des Moines
  • Jordan Creek and Mills Civic Parkway suburban office and retail corridor
  • I-80/I-35 interchange logistics and distribution operations

Market Insight

Iowa's High Quality Jobs Program offers significant tax incentives — including investment tax credits and sales tax refunds — for CRE projects that create jobs paying at least 120% of the county average wage, and Des Moines has been one of the most active metros for program utilization.

Mezzanine Loans in Des Moines, Iowa

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 Des Moines metro area, borrowers can access 8 lenders offering Mezzanine financing, including West Des Moines, Ankeny, Ames, 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 Iowa Cities

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