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Mezzanine Loans in Tacoma, WA

Find lenders offering mezzanine loans in the Tacoma, including Lakewood, Puyallup, Federal Way, 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

Tacoma Commercial Real Estate Market

Tacoma has positioned itself as a more affordable alternative to Seattle, attracting tenants and investors priced out of King County with significantly lower office rents and industrial lease rates along the Port of Tacoma and Fife corridor. The downtown core has undergone a cultural revitalization anchored by the Museum District, the University of Washington Tacoma campus, and adaptive reuse of historic warehouse buildings into creative office and residential lofts. The Port of Tacoma, part of The Northwest Seaport Alliance with the Port of Seattle, is a major container gateway that supports substantial industrial and logistics CRE demand in Fife, Lakewood, and the I-5 corridor south. Joint Base Lewis-McChord (JBLM) in Lakewood is one of the largest military installations in the western U.S. and generates consistent demand for retail, multifamily, and service-oriented commercial space.

Key Economic Drivers

  • Port of Tacoma and The Northwest Seaport Alliance container operations
  • Joint Base Lewis-McChord military installation with 40,000+ military and civilian personnel
  • University of Washington Tacoma and Pacific Lutheran University anchoring downtown redevelopment
  • I-5 corridor industrial and logistics growth between Seattle and Olympia

Market Insight

Tacoma's downtown vacancy rate has tightened significantly as tenants migrated south from Seattle seeking lower rents, with historic warehouse conversions in the Brewery District and UW Tacoma corridor commanding lease rates still 30-40% below comparable Seattle spaces.

Mezzanine Loans in Tacoma, Washington

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 Tacoma metro area, borrowers can access 8 lenders offering Mezzanine financing, including Lakewood, Puyallup, Federal Way, 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 Washington Cities

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