6. Mezzanine debt is established as an intermediate funding mechanism that usually supplements the equity investment and first mortgage. Any traditional lender may use it in negotiations. Typically, deals with mezzanine debt are structured with a 70 percent mortgage, 5 to 25 percent mezzanine debt, and the remainder from the developer's equity. Unlike a mortgage, a partnership interest is assigned in case the developer defaults on the loan, making mezzanine a convertible debt-equity instrument. Why might mezzanine debt entice a lender