Finance
What is a 'mezzanine loan' in Delaware commercial real estate?
AA loan secured by the mezzanine-level floors of a commercial building
BA subordinate loan secured by equity interests (ownership shares) in the property owner, not by the real property itself✓ Correct
CA medium-risk loan between senior and junior debt
DA short-term construction loan for a building's middle floors
Explanation
A mezzanine loan is secured by pledges of ownership interests (LLC or partnership interests) in the property-owning entity, rather than a mortgage on the real property. It fills the gap between senior debt and equity in a capitalization stack.
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