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Mezzanine Loans in Ohio

Browse 8 lenders offering mezzanine loans in Ohio. Compare rates, requirements, and loan programs — then connect directly.

OH Lenders
8
Typical Rate
10% - 18%
Down Payment
Reduces equity to 5-15% total
Term
1-7 years
Closing Time
30-60 days

About Mezzanine Loans in Ohio

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 Ohio, 8 lenders currently offer Mezzanine financing with loan amounts from $1M to $100M and rates typically ranging from 10% - 18%.

Ohio Market Overview

Ohio's major metros of Columbus, Cleveland, and Cincinnati each have distinct economic specializations, with Columbus demonstrating particularly strong growth in technology, insurance, and logistics. The state is a significant manufacturing and healthcare services hub.

Ohio's Community Reinvestment Area (CRA) program is one of the state's most powerful CRE incentives, providing 100% property tax abatement on improvements for up to 15 years for qualifying commercial projects. The state's Tax Increment Financing program and Job Creation Tax Credit further enhance CRE development economics. Columbus has emerged as one of the top-performing Midwest CRE markets, with Intel's $20 billion chip fabrication facility in Licking County catalyzing a wave of supplier and support service commercial development in central Ohio.

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

Pros and Cons

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 FAQ

How does mezzanine differ from a second mortgage?
A second mortgage is secured by a lien on the property. Mezzanine debt is secured by a pledge of the borrower's ownership interest in the entity that owns the property. This distinction matters for foreclosure — mezzanine lenders can take over the entity via UCC foreclosure, which is faster than mortgage foreclosure.

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