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The first securitization of small-balance mezzanine loans is expected to come to market in November. The offering by Mezz Cap, a lender based in Short Hills, N.J., will be backed by about 110 loans totaling $80 million. Merrill Lynch will lead the deal. Mezz Cap originates through an arrangement with eight conduit lenders that gives their borrowers the option of taking out a mezzanine loan equal to 5% of the first-mortgage proceeds.
Five Mile Capital, a new investment manager headed by former PaineWebber executive Jack Taylor, has lined up more than $300 million of equity and is preparing for a second round of fund-raising. The Stamford, Conn., firm is targeting up to $750 million of equity for its first fund, Five Mile Capital Secured Cash Flow Fund, which will invest in a broad range of high-yield assets, including commercial mortgages and asset-backed instruments.
iStar Financial is looking...