A10 Capital Funds Refinancing of 2 MOBs
- May 21, 2015
Two medical office buildings from Austin’s metro have been refinanced through a $4.6 million bridge loan. The commercial mortgage has been funded by A10 Capital, is secured by the two Class B buildings, and provided leverage of approximately 65 percent.
“The sponsor is an experienced CRE investment firm that focuses on opportunistic real estate properties. They needed a lender willing to work with them on a complex deal structure with many moving parts. Since this property is located in an expanding metro area with huge potential for growth in the medical office sub-market, A10 was able to structure a facility that met the requirements of the borrower,” said John Neff, principal & executive vice president of A10, in a statement.
The bridge loan was structured on a non-recourse basis. Proceeds were directed towards funding the refinance of a mature CMBS loan and toward facilitating the lease-up of the property.
“A10 Capital did a terrific job with us on a small, complex deal,” added Dennis Williams, managing director at NorthMarq Capital, who arranged the financing. ”The loan amount was under ($5 million) on an asset with a major tenant potentially expiring during closing, a ground lease, an appraisal issue and a maturity default with a CMBS lender.”