A10 Capital Funds $11.7 Million Non-Recourse Commercial Mortgage to Recapitalize a REO Purchase in Southern California

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Bridge loan provided for class B office building.

Undoubtedly, this will be a winning transaction for all parties.

A10 Capital, a full service nationwide lending business specializing in small to middle market commercial real estate loans announced today that it has funded a $11.7 million non-recourse bridge loan to finance an office building in the San Diego metro area. The commercial mortgage is secured by a Class B multi-tenant office building and provided approximately 65% leverage. The proceeds were used to recapitalize a recent REO purchase from a CMBS special servicer. In addition, the loan provided for a TI/LC facility and capital improvement allowance to address upgrades at the property.

Michael Singh, EVP of A10 Capital, who structured and closed the loan, said, “Recognizing the property’s potential, the mortgage banker, borrower, and A10 Capital successfully worked together to not only figure out how to deal with a significant vacancy issue, but also structured a facility that afforded the borrower sufficient capital to address future TI /LC requirements as well as building enhancements.”

Scott Peterson with CBRE Capital Markets added, “A10 Capital dug deep in the transaction very early on in order to understand the history of the asset and the story of its distressed past ownership. The 26% leased asset is in one of the best performing submarkets in San Diego County. With the vision of the new ownership and the creative capital structure provided by A10 Capital, the property is already seeing success through better than expected leasing activity. Undoubtedly, this will be a winning transaction for all parties.”

“Because banks are continuing to reduce their exposure to commercial real estate in wake of the credit crisis, A10 Capital’s “value-add” / “mini perm” loans continue to fill a giant void in the marketplace,” Singh added.

About A10 Capital

Founded in 2007, A10 Capital specializes in small to middle market commercial mortgage loans on a nationwide basis. Our core product, a mini-perm loan, features an intermediate term of 3-5 years that is often used to finance properties not yet in a position to obtain longer-term, permanent financing. A10 Capital is a full service lending platform, including origination, underwriting, closing, and servicing. The firm has its primary headquarters located in Boise, Idaho, with secondary headquarters located in Dallas, Texas. In addition, A10 has regional production offices located in Atlanta, Chicago, Newport Beach, New Jersey, Philadelphia, and San Francisco.

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Laura Penney
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