Mezz is sourced from debt funds, dedicated mezzanine programs at large investment managers, life-co subsidiaries, and certain CMBS B-piece shops that also write mezz. The senior must consent, so most processes run senior and mezz in parallel through a debt advisor to align intercreditor terms before either is locked.
Why parallel-process?
Locking the senior first commits the sponsor to that lender's intercreditor form, which materially limits the mezz lenders willing to participate. Running both in parallel reveals which senior/mezz combinations produce the cleanest economics and the fastest close.
What information do mezz lenders want?
Senior term sheet (or expected senior parameters), as-is and as-stabilized rent rolls, sponsor schedule of real-estate-owned, business plan with stabilization timeline, exit strategy, and a draft intercreditor mark-up reflecting the senior's form. Diligence is faster than senior diligence by roughly two weeks.
Sources
- Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations · Mortgage Bankers Association · 2026-Q1