REAL ESTATE GLOSSARY
Mezz Debt
Mezzanine Financing
Subordinate financing positioned between senior debt and equity.
What does Mezz Debt mean?
Subordinate financing positioned between senior debt and equity. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
Mezz Debt in context
A sponsor combines senior mortgage debt, mezzanine capital and owner equity for an acquisition.
Why it matters in financing
Mezz Debt can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related real estate terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.