Investors find loaning far better than owning.

In his career as a real estate investor, Eric Hadar has progressed from purchasing Ravenite Social Club in Little Italy in 1998 to acquiring the 59-story Citigroup Center just two years ago. Lately, however, affected by rising building prices, Hadar has switched from buyer to financier. He has set up a new debt fund that focuses exclusively on providing a buyer with mezzanine debt--the cash that bridges the gap between the down payment and the amount a bank is willing to provide for the mortgage. The key attraction of mezzanine financing is the payoff. Hadar is part of a growing number of investors in Manhattan, New York City commercial real estate who, instead of doing their own deals, have quietly made the switch to financing the deals of others. These new mezzanine lenders include family firms like Allied Partners and large landowners such as RFR Holding.