A10 Capital Raises $100M in Capital to Launch Lending Group to Fund First Mortgage Loans

By Erika Schnitzer, Associate EditorBoise, Idaho—A10 Capital, a firm that finances commercial real estate and provides advisory and management services to resolve troubled assets, has announced 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. “We fill a void in the marketplace today between conventional lending sources and hard money lenders,” Jerry Dunn, CEO of A10 Capital, tells MHN.A10 Capital positioned itself for today’s market by raising over $100 million in committed capital from large institutions, Dunn says. “We essentially had some visionary founders who saw a bubble in the credit markets and expected that something would happen,” he adds.A10 Capital specializes in alternative funding for situations that conventional lenders typically avoid, such as low occupancy, a lease-up situation, or a turnaround situation. “We are providing financing on projects where conventional lenders are saying ‘no,’” says Dunn.A10 has seen many requests for multifamily loans, including one $5 million transaction that A10 could potentially close on this week, where the firm is financing a debt buyer who is buying a distressed debt loan for a multifamily property.A10 Capital also provides loans for existing commercial properties, as well as those that require rehabilitation.“A lot of these were bankable-type transactions before the credit crunch, but now there may be an occupancy issue that is not good enough for the life insurance companies,” notes Ken Wilson, executive vice president of A10 Capital.Preferred loan sizes range from $2 to $7 million, with a $10 million maximum.  “We had been waiting in the marketplace until now to deploy that capital, so we have a significant amount of ‘dry powder’ and we don’t have any legacy loans that would prevent us to do business today,” says Dunn.While the firm currently focuses on markets in the West and in New York, it will consider loans on a case-by-case basis in other markets.