A10 Capital Launches Lending Group to Fund First Mortgage Commercial Real Estate Loans
Will use $100 Million Fund to Provide Critical Capital Markets Bridge
Boise, ID. May 11, 2009 – A10 Capital, a fully integrated firm that finances commercial real estate and provides services to resolve troubled assets, announced today the establishment of its Lending Group to originate first mortgage commercial real estate loans and provide financing to investors for distressed debt purchases secured by commercial real estate. In anticipation of the current credit crisis, the firm raised over $100 million of capital two years ago. A10 Capital is now uniquely positioned because it has kept nearly all of that "powder dry" and thus has no legacy loans hindering it from making new loans today.
A10 Capital's first mortgage loan program fills the void between conventional loans and hard money loans. A10 Capital specializes in alternative funding for situations that conventional lenders typically avoid such as lower than market occupancy, a lease-up situation, or a turnaround situation. Preferred loan sizes range from $2 to $7 million, with a $10 million maximum.
"In today’s credit-challenged markets, many loans that were bankable two years ago no longer qualify because banks and life insurance lenders have tightened their underwriting guidelines, and the CMBS markets are shut down," said Jerry Dunn, CEO, A10 Capital. "These loans are considered 'almost bankable' for a variety of reasons and that's where A10 steps in. We fill the void between conventional lending sources and hard money lenders."
A10 Capital's capital market bridge program is being utilized by real estate owners until the credit markets return. This assistance has been a critical lifeline to some real estate owners who don't want to be locked in for 10 years at today's higher conventional spreads, or have simply run out of options.
"Some clients refer to us as a 'warm money' or 'firm money' lender," said Ken Wilson, EVP, A10 Capital. "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."
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