What is a B-note or B-piece in a commercial real estate loan?

A B-note (or B-piece) is the subordinate portion of a split commercial real estate loan. The senior A-note holds first-loss protection, while the B-note absorbs losses first. Banks and institutional lenders often sell their B-pieces to firms like H Equities, which allows the primary lender to stay within their LTV policy while the borrower still gets their full loan amount in a single closing.

Why do banks use capital partners for CRE loans?

Banks often have LTV limits, concentration limits, or policy constraints that prevent them from funding the full amount a sponsor needs. By partnering with a firm like H Equities to provide mezzanine debt, preferred equity, or a B-piece, the bank can originate the senior position it wants while H Equities fills the gap — allowing the borrower to close with one lender relationship and one closing.

What types of capital partnerships does H Equities offer?

H Equities provides mezzanine loans ($3MM–$15MM), preferred equity ($3MM–$15MM), co-GP equity ($1MM–$4MM), and B-piece or junior participations to banks, private lenders, and sponsors who need subordinate capital to complete their deals.

Capital Partners

We Partner. We Don't Compete.

H Equities works alongside banks, private lenders, and sponsors who need a capital partner — not another bidder. Whether you need subordinate debt, a co-GP equity check, or a B-piece to complete your stack, we move fast and stay aligned.

How We Partner

Three Ways to Work Together.

Every partnership is structured around the same principle: we fill the gap in the capital stack without stepping on the primary relationship.

Mezzanine & B-Piece Lending

Banks and institutional lenders frequently encounter deals that exceed their LTV parameters or concentration limits. H Equities provides the junior piece — mezzanine debt, preferred equity, or B-note participations — so you can quote the full loan without overextending your balance sheet.

$3MM – $15MM subordinate positions
Behind senior bank or institutional debt
Discreet execution, no borrower overlap
Single closing, seamless structure

Co-GP Equity

Experienced sponsors who need a GP partner with capital stack expertise, not just capital. H Equities invests $1MM–$4MM alongside operators across all major CRE asset classes — nationally.

$1MM – $4MM co-GP equity
Active partnership, not passive capital
Sponsor retains operational control
All major CRE asset classes

Junior Participations

For lenders who need additional proceeds to close — we structure junior participations behind your A-note. Your primary relationship stays intact. The borrower gets a seamless single closing.

A-note / B-note structures
Behind banks and private lenders
Leverage-constrained solutions
Your relationship, our capital

Why H Equities

Built for the Way Deals Actually Work.

We Understand Your Constraints.

Regulatory limits, concentration risk, LTV ceilings — we structure around your parameters, not over them. You keep the senior position and the borrower relationship.

Operators, Not Just Allocators.

H Equities owns and manages commercial real estate directly. Our underwriting is informed by operational experience — not just spreadsheets.

Speed Without Shortcuts.

We close in weeks, not months. Our capital is committed and our process is direct — no committee delays, no multi-layer approvals.

Discretion Is Standard.

Your borrower relationship stays intact. We operate behind the scenes as a subordinate capital provider, not a competing voice at the table.

The Process

From Introduction to Closing.

You Bring the Deal

Share the basics — asset class, deal size, location, capital stack needs. We respond within 48 hours.

We Structure the Piece

Mezzanine, preferred equity, B-note, co-GP — we propose the structure that fits your stack and your constraints.

Parallel Track

We underwrite simultaneously. No sequential delays. We move at your pace.

Single Closing

One closing, one set of docs. The borrower gets a seamless experience. Your relationship stays primary.

Start a Conversation

Have a Partnership Opportunity?

Tell us about your deal and what you need in the capital stack. We'll come back with a structure that works.

Start a Conversation

Banks, private lenders, and sponsors — we work with all three.

H Equities