Comparing mezzanine to alternative debt and equity products

Abstract

The following paper will address the potential use of mezzanine debt by a real estate buyer who is purchasing an office building in a major US market. Advantages and disadvantages of using mezzanine debt will be discussed and contrasted with alternative financing structures, including the use of additional equity. A short case study will be utilised to monitor the economic returns to the buyer in a best and worst case scenario. Copyright © 2004 Henry Stewart Publications