A10 Capital Launches Lending Groupto Fund First Mortgage Commercial Real Estate Loans
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Will Use $100 Million Fund to Provide Critical Capital Markets Bridge BOISE, Idaho--(Business Wire)-- A10 Capital, a fully integrated firm that finances commercial real estate and provides services to resolve troubled assets, announced today 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. In anticipation of the current credit crisis, the firm raised over $100 million of capital two years ago. A10 Capital is now uniquely positioned because it has kept nearly all of that "powder dry" and thus has no legacy loans hindering it from making new loans today. A10 Capital`s first mortgage loan program fills the void between conventional loans and hard money loans. A10 Capital specializes in alternative funding for situations that conventional lenders typically avoid such as lower than market occupancy, a lease-up situation, or a turnaround situation. Preferred loan sizes range from $2 to $7 million, with a $10 million maximum. "In today`s credit-challenged markets, many loans that were bankable two years ago no longer qualify because banks and life insurance lenders have tightened their underwriting guidelines, and the CMBS markets are shut down," said Jerry Dunn, CEO, A10 Capital. "These loans are considered `almost bankable` for a variety of reasons and that`s where A10 steps in. We fill the void between conventional lending sources and hard money lenders." A10 Capital`s capital market bridge program is being utilized by real estate owners until the credit markets return. This assistance has been a critical lifeline to some real estate owners who don`t want to be locked in for 10 years at today`s higher conventional spreads, or have simply run out of options. "Some clients refer to us as a `warm money` or `firm money` lender," said Ken Wilson, EVP, A10 Capital. "Because we take more risk than a conventional lender, our loan pricing is slightly higher than conventional commercial real estate loans-but still less expensive than hard money loans." About A10 Capital A10 Capital is a fully integrated firm that finances commercial real estate and provides advisory and management services for the workout of all types of troubled loans and real estate assets. A10`s team has closed over $20 billion of commercial transactions and has significant experience operating in distressed environments dating back to the RTC in the l980s. A10 has over $100 million of dry powder available to operate its four lines of business: A10`s Lending Group originates first mortgage commercial real estate loans and provides financing to investors for distressed debt purchases secured by commercial real estate. A10`s Bank Solutions Group provides advisory, consulting, and management services for the resolution of all types of troubled loans and real estate assets. A10 can also provide capital to assist banks with the resolution of certain commercial real estate loans and assets. A10`s TIC Solutions Group provides asset management and develops workout and turnaround strategies for distressed Tenants-in-Common (TIC) properties. A10`s Investments Group makes mezzanine and equity investments in cases where its capital and expertise can turnaround and create significant value in a commercial property. A10 Capital is headquartered in Boise, ID and has offices in Seattle, WA, Denver, CO, Salt Lake City, UT and New York, NY. For more information visit: http://www.a10capital.com. CNC Associates for A10 Capital Cathy Clarke, 508-833-8533 cathy@cncassocs.com Copyright Business Wire 2009
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