The layers of the capital stack
| Layer | Secured by | Remedy on default | 2026 cost marker |
|---|---|---|---|
| Senior debt | Mortgage on the property | Foreclose on the property | 195 bp over the 10-year (fixed, up to 65% LTV, Altus Q2 2026 quotes) |
| Mezzanine debt | Pledge of the equity in the property-owning company | UCC Article 9 sale of the pledged equity | 759 bp over the 10-year (fixed, 70% to 90% LTV) |
| Preferred equity | Nothing; it is ownership | Usually a right to take control or force a sale | 13.57% all-in coupon (fixed, 70% LTV and up) |
| JV and common equity | Nothing | Votes and the operating agreement | Whatever is left after everyone above |
The cost markers are averages of lender quotes from Altus Group’s Q2 2026 survey; the costs page has the full table and what public lenders actually earn.
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