VALUE-ADDED commercial MORTGAGEs
In today's credit-challenged markets, many loans that were bankable pre-credit crisis are no longer qualifying because commercial banks and life insurance lenders have tightened their underwriting guidelines, and the CMBS markets are shut down. Further, mini perm loans are difficult to obtain because many community banks, the largest source of this loan type, are insolvent today.
That's where A10 steps in. Our mini perm and “nearly bankable” loans fill the void between conventional and hard money sources. Plus as an unregulated lender, we can structure first mortgage commercial real estate loans to address virtually any combination of opportunity and circumstance including “good news” and “earn-out” fundings. Timing is always critical, and we can tailor loan programs to meet your schedule, even for tight closing deadlines.
Because we take more risk than a conventional lender, our loan pricing is slightly higher than conventional commercial real estate loans—but still less expensive than hard money loans.
TYPES OF VALUE-ADDED commercial MORTGAGEs
- Mini perm loans
- Nearly bankable loans
- Capital market bridge loans
- “Warm money” or “firm money” loans
- Acquisition financing
- Refinancing
- Construction takeout loans
- Rehabilitation loans
- Build to suit financing (requires signed leases)
Typical properties
- Apartments / Multi-Family Loans
- Industrial Loans
- Office Loans
- Retail Loans
- Mixed Use Loans
- Flex (Office/Warehouse)
- Special Use Loans (limited appetite)
- Residential Developments and Entitled land considered on a case-by-case basis (limited appetite)
Typical Situations
- “Lease-Ups” (provides time to get property occupied)
- Commercial real estate loans that don’t meet bank underwriting criteria
- Foreclosure purchases
- Financing for discounted payoffs (DPOs)
- Cash-out financing
- Repositionings / transitional properties
- Opportunistic purchases that need to close fast
- Interim bridge financing
- Refinancing of maturing commercial real estate loans
- Construction takeouts
- A conventional commercial real estate loan closing falls apart in the 11th hour and new financing needs to get put in place quickly to meet the closing deadline
- Financing for properties exiting bankruptcy
- Unusual borrower situation
- Short time frame to close
- Situations in which a bank asks you to leave
- Insufficient cash flow generated by commercial real estate
- Sponsor cash flow or net worth constraints
- Short time frame for repayment
- Partner buyouts
- Loans on properties owned under a Tenants-in-Common (TIC) structure
- Hard money loans (considered on a case-by-case basis)
Why A10?
- Faster commercial real estate loan closings than a conventional lender
- Less expensive than bringing in an equity partner, especially on an after-tax basis
- Unique situations
- Transitional or repositioned property
- Asset based underwriting
- Bridge financing
- Less expensive than a hard money lender
Unique Features
- Non-recourse
- Limited recourse
- Non-disclosure
- Cash out financing considered
These programs are available on most properties.