The demand for mezzanine financing that dried up in the recessions is reawakening despite the risks that accompany this secondary form of financing. "I think it's fair to say that right now the desire to place mezzanine debt outweighs the demand for it, but a lot of people are looking to put mezzanine loans on their properties," says William Shanahan, a vice chairman at CB Richard Ellis. Since January, $374 million in mezzanine loans have been issued -- compared with $210 million in all of 2009, according to Jones Lang LaSalle.

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