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Mezzanine Loans in Rhode Island

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

RI 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 Rhode Island

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

Rhode Island Market Overview

Rhode Island's compact geography and position between Boston and New York create a niche CRE market. The state has invested in revitalizing Providence and leveraging its naval heritage in Newport for defense-related commercial activity.

Rhode Island's Rebuild Rhode Island Tax Credit program offers up to 30% of development costs as a transferable tax credit for qualifying commercial projects, making it one of the more generous state development incentive programs. The state's historic preservation tax credits, combined with federal credits, can cover up to 45% of qualified rehabilitation costs, which has driven significant adaptive reuse of mills and historic commercial buildings. Rhode Island's small geographic footprint means that commercial property markets can shift quickly with even modest changes in demand, requiring close attention to local absorption trends.

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.

Mezzanine Loans by City in Rhode Island

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