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Mezzanine Loans in Boston, MA

Find lenders offering mezzanine loans in the Boston, including Cambridge, Quincy, Somerville, 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

Boston Commercial Real Estate Market

Boston is one of the nation's premier commercial real estate markets, commanding top-tier rents across office, lab, and multifamily asset classes. The Seaport District has transformed into a life sciences and innovation hub with over 7 million square feet of development since 2010, while Cambridge's Kendall Square remains the world's densest cluster of biotech lab space. The Financial District and Back Bay continue to serve as the core office market, though tenants increasingly seek LEED-certified, amenity-rich buildings. Suburban submarkets along Route 128 and I-495 offer lower-cost alternatives for office and industrial users, though urban demand has driven cap rate compression across the metro.

Key Economic Drivers

  • Life sciences and biotech cluster anchored by Kendall Square, Harvard, and MIT research ecosystems
  • Major health systems including Mass General Brigham, Beth Israel Lahey, and Boston Children's Hospital
  • Financial services firms concentrated in the Financial District and Back Bay, including Fidelity and State Street
  • Technology companies and venture capital activity in the Seaport Innovation District

Market Insight

Boston's lab and R&D space commands some of the highest rents in the country, with Kendall Square lab space regularly exceeding $100 per square foot NNN, driven by near-zero vacancy among purpose-built life sciences facilities.

Mezzanine Loans in Boston, Massachusetts

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 Boston metro area, borrowers can access 8 lenders offering Mezzanine financing, including Cambridge, Quincy, Somerville, 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 Massachusetts Cities

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