Back to Press Room

A10 Capital Provides $6.9 Million Mini Perm Loan to Fund Lease-Up

Dallas, TX. March 29, 2010 – A10 Capital, a fully integrated firm that finances commercial real estate and provides services to resolve troubled assets, announced today that it closed a $6.9 million mini perm loan secured by an un-stabilized Class A office building in Texas. A10’s borrower is a national real estate investment firm that has invested over $10 billion in real estate and has managed over 50 million square feet of space since its inception.

An initial advance of $4.4 million provided cash out for operating deficiencies and to cover tenant improvement and leasing commissions on two recently signed leases that will increase the building’s occupancy from 20% to 55%. In addition, the loan includes a $2.5 million “good news” facility to fund future leasing expenses in order to get the property fully stabilized. The transaction was structured on a non-recourse basis.

Mark McClure, A10 Capital’s EVP of Texas Markets, structured and closed the transaction. “Due to the property’s low occupancy, the borrower was unable to secure financing from traditional lending sources despite the high quality of the real estate collateral and the strong sponsorship,” said Mark McClure. “A10’s loan provided the borrower an immediate source of working capital and a future funding mechanism to enable the borrower to reposition the asset over the next few years.”

The loan was referred to A10 Capital by Holliday Fenoglio Fowler, a commercial real estate capital intermediary firm. “A10’s ability to creatively work with the borrower to address a number of moving parts and roadblocks during the closing process was very impressive,” said Mark Sixour, HFF Atlanta.

About A10 Capital

A10 Capital is a fully integrated firm that finances commercial real estate and provides advisory and management services for the workout of all types of troubled loans and real estate assets. A10’s seasoned and proven team has closed $30 billion of commercial transactions and brings a track record of successfully operating in distressed environments dating back to opportunities arising from the Resolution Trust Corporation in the 1980s. A10 leverages the skill set of its platform and team to operate in three complementary lines of business.

• Senior Lending. Senior loans on commercial real estate ranging from $500,000 to $10 million. Loans are held on balance sheet and serviced in-house. Loan types include mini perms for lease-up situations, “nearly bankable” loans for situations just outside of bankable structures, and note purchase loans for performing and distressed debt purchases.
• Opportunity Fund. Opportunistic investments through a separate private equity fund. Targeted transactions include mezzanine loans, equity investments, and DIP financing.
• Advisory. Various advisory and consulting services for the workout of all types of troubled credits and real estate assets.

For Further Information Contact:
Cathy Clarke
CNC Associates
508-833-8533
cathy@cncassocs.com

Back to Press Room