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Mezzanine Loans in Charleston, SC

Find lenders offering mezzanine loans in the Charleston, including Mount Pleasant, North Charleston, Summerville, 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

Charleston Commercial Real Estate Market

Charleston is one of the fastest-growing CRE markets in the Southeast, propelled by Boeing's 787 Dreamliner final assembly facility, a booming port, and a tourism economy that generates over $8 billion annually. The Mount Pleasant and Daniel Island submarkets attract affluent residential and Class A office demand, while North Charleston's Intermodal Container Transfer Facility links the Port of Charleston to national rail networks, driving industrial and logistics development. The Upper Peninsula neighborhood in downtown Charleston's Neck area has emerged as a development frontier, with large-scale mixed-use and tech-oriented projects reshaping the formerly industrial corridor. The historic district's strict preservation requirements create a constrained supply environment for hospitality and retail properties, supporting premium rents.

Key Economic Drivers

  • Boeing South Carolina's 787 Dreamliner campus employing thousands and anchoring an aerospace supplier cluster
  • Port of Charleston, one of the deepest harbors on the East Coast, driving warehouse and logistics demand
  • Tourism industry generating over $8 billion annually and sustaining high hospitality occupancy rates
  • Medical University of South Carolina (MUSC) and Roper St. Francis healthcare system expansions

Market Insight

The Port of Charleston's harbor deepening project to 52 feet is enabling it to handle the largest post-Panamax container vessels, positioning the metro for significant growth in port-adjacent industrial and cold storage CRE demand.

Mezzanine Loans in Charleston, South Carolina

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 Charleston metro area, borrowers can access 8 lenders offering Mezzanine financing, including Mount Pleasant, North Charleston, Summerville, 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 South Carolina Cities

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