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Mezzanine Loans in Providence, RI

Find lenders offering mezzanine loans in the Providence, including Warwick, Cranston, Pawtucket, 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

Providence Commercial Real Estate Market

Providence's CRE market benefits from a strategic location between Boston and New York, a concentration of prestigious universities, and a revitalized downtown anchored by the Providence Place mall and the Capital Center development district. The Knowledge District around the former I-195 relocation land has created new parcels for life sciences, technology, and institutional development, with Brown University, Johnson & Wales, and the Rhode Island School of Design generating a robust innovation economy. The Jewelry District, once the heart of American costume jewelry manufacturing, is being transformed into a mixed-use innovation hub with medical office, biotech, and residential components. Industrial demand concentrates along the Route 6 and I-295 corridors in Warwick and Cranston, where proximity to T.F. Green Airport and the Port of Providence supports logistics operations.

Key Economic Drivers

  • Brown University, RISD, and Johnson & Wales University anchoring an eds-and-meds innovation economy
  • I-195 Redevelopment District creating 19 acres of prime development parcels in the Knowledge District
  • Lifespan and Care New England hospital systems driving medical office and lab space demand
  • T.F. Green Airport and Port of Providence supporting logistics and distribution in the Warwick corridor

Market Insight

The I-195 Redevelopment District — created by relocating an elevated highway — has opened 19 acres of developable land in downtown Providence, representing one of the most significant urban infill opportunities in New England for institutional, life sciences, and mixed-use CRE projects.

Mezzanine Loans in Providence, 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 the Providence metro area, borrowers can access 8 lenders offering Mezzanine financing, including Warwick, Cranston, Pawtucket, 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

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