What is mezzanine financing in real estate? Mezzanine debt (and other forms) explained in plain English
[{"id": "cve3sg8", "text": "There needs to be a site dedicated to simple definitions of the industry.", "replies": [{"id": "cvgtyhy", "text": "Thats the funny thing about the industry. Nothing is standardized. For example, a triple net lease defined by one broker may vary differently from another. ", "replies": [{"id": "cvgud2v", "text": "I think that is the funniest thing.  I mean yeah folks need a general understanding of terminology, but I remember having to memorize like 7 different types of lease structures in school and describe the differences on tests etc.  \n\nthen you start working and have a question about what someone means by a term and the answer is always \"call and ask, there are no standard definitions\"", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cve5aiu", "text": "This is an awful definition. Mezzanine is NOT a catch-all term for all junior debt, I'd call it something like \"subordinate debt\". Mezzanine means specifically debt collateralize by interests in the borrowing entity.", "replies": [{"id": "cve61f9", "text": "The article also specifically tries to equate mezzanine debt with preferred equity. Back in the day a certain rating agency used to flip ~~there~~ their shit if we called mezz debt preferred equity or vice versa, even if they are (in principle) very similar.  \n\nEdit: self grammar nzi", "replies": [{"id": "cvgtznp", "text": "Interesting read here: http://www.paulweiss.com/media/109627/nylj_30nov11.pdf", "replies": [{"id": "cvgvahr", "text": "I should have known that it was about the remedies...", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "cve6a0e", "text": "I think the author was trying to give a macro-level understanding of mezz debt for more novice players.  I think he did a fairly good job, at least in that aspect, although some of the nuances are a bit off.", "replies": [], "depth": 2}], "depth": 1}]