A10 Capital Provides $4.3 Million Non-Recourse Commercial Mortgage Loan to Fund Acquisition and Lease-Up of Office Buildings

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Secured by three class B office buildings in Georgia

A10’s bridge 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

A10 Capital, a full service nationwide lending business specializing in small to middle market commercial real estate loans, announced today that it closed a $4.3 million bridge loan secured by three un-stabilized Class B office buildings in Georgia. A10’s borrower is a private real estate investment firm specializing in the acquisition and management nationwide.

An initial advance of $2.9 million funded the acquisition and provided proceeds for operating deficiencies and to cover tenant improvement and leasing commissions on two recently signed leases that will increase the building’s occupancy from its current rate of 42.6%. In addition, the loan includes a $1.4 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.

Chuck Taylor, A10 Capital’s EVP of Southeast 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 Taylor. “A10’s bridge 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 Stevens Financial Services, a commercial real estate capital intermediary firm located in Atlanta.

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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