Penzance secured a $14.8 million mezzanine loan, from Pearlmark Mezzanine Realty Partners IV (Mezz Fund IV), to complete its acquisition of Elan Potomac Heights. Elan Potomac Heights is a newly erected 288-unit, Class A apartment building constructed in Woodbridge, Virginia. When the acquisition was completed, the property was already 93 percent leased. Pearlmark Mezzanine Realty Partners IV (Mezz Fund IV) is a fully discretionary investment fund. Mezz Fund IV is the company’s exclusive mezzanine financing channel.

In the acquisition financing arena, capital availability is destiny as companies require reliable access to capital to grow over the long term. Unforeseen capital needs usually arise when acquirers least expect it. This can cause some concern for the acquisition financing provider, especially when covenants tighten up and that working capital availability is utilized faster than expected.

Mezzanine debt borrowing is usually a straightforward activity that many companies use for funding of transitional growth. Mezzanine debt lenders are highly transparent about their due diligence approach and their post-closing loan management making it easy for companies to engage with.

Elections have consequences and positive ones at that for the acquisition financing middle market. While much media attention is paid to the direction of the yield curve and the Fed’s likely rate cuts, scant attention is paid to the more important drivers of the acquisition financing market – business psychology and regulatory climate.

Penzance acquires Elan Potomac Heights with a $14.8 Million Mezzanine Loan

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