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Mezzanine Loans in Dayton, OH

Find lenders offering mezzanine loans in the Dayton, including Kettering, Beavercreek, Springfield, 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

Dayton Commercial Real Estate Market

Dayton's CRE market is heavily influenced by Wright-Patterson Air Force Base, the largest single-site employer in Ohio with over 30,000 military and civilian personnel, which anchors a defense and aerospace technology ecosystem in the surrounding Fairborn and Beavercreek submarkets. The base's Air Force Research Laboratory generates demand for secure office space, R&D facilities, and defense contractor offices, particularly along the Colonel Glenn Highway corridor near Wright State University. Downtown Dayton has experienced modest revitalization around the Dayton Arcade redevelopment and the Water Street District along the Great Miami River, though office vacancy in the CBD remains above the state average. The I-70/I-75 interchange area remains a significant logistics and distribution node, benefiting from Dayton's central Ohio location and access to over 60% of the U.S. population within a day's drive.

Key Economic Drivers

  • Wright-Patterson Air Force Base and Air Force Research Laboratory driving defense contractor and R&D space demand
  • Premier Health and Kettering Health Network medical systems generating healthcare CRE demand across the metro
  • Wright State University research programs feeding the defense technology tenant pipeline
  • I-70/I-75 interchange logistics positioning supporting industrial and distribution facility demand

Market Insight

Wright-Patterson Air Force Base contributes an estimated $4.9 billion annually to the Dayton regional economy, and the base's ongoing modernization programs ensure sustained demand for off-base contractor office space and secure facilities in the Fairborn-Beavercreek corridor.

Mezzanine Loans in Dayton, 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 the Dayton metro area, borrowers can access 8 lenders offering Mezzanine financing, including Kettering, Beavercreek, Springfield, 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 Ohio Cities

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