Mezz Cap

Transaction Overview
Transaction: Equity investment in real estate operating company

Transaction Background
CBA Mezzanine Capital Finance LLC ("Mezz Cap") was launched by CBA through its affiliate, Cheslock Bakker Opportunity Fund, L.P. (CBOF), to capitalize on the lack of liquidity and inefficiencies in the growing market for real estate mezzanine loans, focusing on borrowers obtaining senior financing in the CMBS market.

Transaction Summary
Commercial real estate mezzanine loans made by Mezz Cap are in the form of "B" notes that are secured by liens, but subordinate to "A" notes funded by Mezz Cap's designated underwriters and conduit-lending partners. Mezz Cap can provide on a delegated underwriting basis a maximum leverage up to 85% LTV on the same term and amortization as the senior loan.

Mezz Cap's unique business model enables the ability to offer fast, simple and reliable closing without undergoing the typical structuring and legal complexities associated with procuring mezzanine financing. The underwriting, approval, commitment and closing process is controlled by Mezz Cap's approved conduit-lending partners. Targeted borrowers include an underserved market of $4 to $32 million first lien borrowers seeking additional proceeds of $250,000 to $2 million.

In February 2004, Mezz Cap completed a very successful securitization of $51 million of its B note portfolio.

Key members of the staff include experienced Wall Street securitization and commercial real estate professionals that are fully knowledgeable in all aspects of the real estate capital markets. For additional information, please visit Mezz Cap's website at www.mezzcapfinance.com