Short answer
Yes, but the market is narrower. Many senior construction lenders limit junior debt to preserve completion-guarantee leverage and avoid intercreditor complications.
What senior consent issues arise?
Bank construction lenders especially are cautious about mezz because the deal is illiquid until completion and lease-up. The intercreditor must address completion-guarantee triggers, draw-process control, and what happens if the mezz forecloses mid-construction. Some banks will not lend behind mezz at all; debt funds and certain CMBS construction shelves accept it.
Sources
- Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations · Mortgage Bankers Association · 2026-Q1
- Quarterly Banking Profile · Federal Deposit Insurance Corporation · 2026-Q1