Arzan Wealth Advises on Shariah-Compliant Mezzanine Finance Deal Secured by U.S. Workforce Housing Portfolio

Dubai-based investment advisory firm Arzan Wealth (DIFC) Limited has announced its role in advising on a structured amortizing mezzanine finance transaction, supporting a portfolio of 1,600 single-family rental homes in the United States. The transaction reflects the firm's strategic emphasis on structured debt investments designed per Shariah principles.

The mezzanine loan, extended to a U.S.-based sponsor specializing in workforce housing backed by government rental guarantees, is secured against properties in Baltimore, Pittsburgh, and Detroit. The sponsor manages a portfolio exceeding USD 280 million in gross assets.

The three-year loan structure includes two optional one-year extensions, providing flexibility for refinancing or asset sale. Investors are projected to receive quarterly distributions averaging a 10.5% post-tax annual yield, with a final fixed payment and accrued return increasing the net internal rate of return (IRR) to approximately 13.2%, net of all fees and expenses.

Arzan Wealth advised on the structuring and due diligence of the investment and will continue to oversee the deal during its lifecycle through its U.S.-based subsidiary, Arzan US, acting as Special Servicer to ensure close asset monitoring and alignment with investor interests.

Muhannad Abulhasan, CEO of Arzan Wealth, commented:

“This transaction reflects our commitment to delivering secure, risk-adjusted returns through well-structured debt strategies. In today’s elevated interest rate environment, amortizing loan structures provide attractive yields while enabling faster capital recovery. Our local presence in the U.S. through Arzan US enhances our ability to actively monitor assets and ensure alignment with investor interests.”

The deal strengthens Arzan Wealth’s position as a trusted advisor in globally diversified, Shariah-compliant investment strategies focused on stable income and capital preservation.