Alternative Mezzanine Lenders: New Kids on the Block

During the past year, the U.S. real estate industry has seen many newcomers enter the field of mezzanine lending. In some cases, as a result of the increase in regulations governing traditional banks, their inability to continue making generous mortgage loans has created mezzanine lending opportunities for “alternative lenders.” These alternative lenders include private equity funds, real estate investment trusts and, in some cases, private developers/operators. In this article, partner Julian Wise, associate Aaron Schwed and former Schulte Lawyer Daniel Aires discuss the rise of alternative lenders.