A10 Capital Provides $79M in Bridge and Permanent Funding
- Apr 18, 2016
Boise, Idaho—Commercial real estate lender A10 Capital has funded loans totaling $79 million for the acquisition of four properties, including three Class B multifamily communities. The sponsor, a successful owner of real estate, required a lender that could handle a complex portfolio and close quickly.
The entire financing was comprised of two loans. The loans were a $40 million bridge loan and a $39 million permanent mortgage. The bridge loan was structured on a non-recourse basis. Proceeds were used for the refinancing of two apartment communities in California and Indiana, and one Indiana retail property.
“The greatest challenge with this project was the tight timeline,” A10 Executive Vice President Jared Frothinger told MHN. “Many team members on both the client and A10’s side were in contact throughout the work day, but also after hours and on weekends. The client had a dedicated team focused on sending all needed documentation to us. Not only was this a great win for the client getting the project done on time, but a well-structured loan and new relationship for A10 Capital to build upon.”
The bridge loan provided committed funds for the major redevelopment of the California multifamily property. Structured on a non-resource basis with a 10-year term, the permanent loan generated proceeds that were utilized to fund the refinance of a Southern California institutional-quality multifamily property.
Both loans moved quickly and smoothly, Frothinger said. “This specific bridge loan had some future funding options and other loan flexibilities built in, including a large budget for renovation work to be completed at one of the properties. These future facilities were of significant importance to the client, [and] took some additional time and effort on everyone’s part to get completed correctly and within the specified timeframe.”
Added Jay Schiesser, managing director at JP Real Estate Partners Inc.: “The borrower had a specific closing date to meet tax year deadlines and the structure was executed concurrently with a complex ESOP corporate transaction.
“I was impressed that the A10 team worked so cooperatively across all their departments and produced not just one, but two lending solutions that delivered as promised in every respect. We were very pleased with the overall execution of these transactions.”
A10 Capital’s forte is serving as a one-stop balance sheet lender for middle-market commercial mortgages.
The company’s loans range from $1 million to $20 million per property, and its broad range of bridge, perm, bridge-to-perm and note purchase loans cover the entire life cycle of United States commercial properties.