A10 Capital launches lending group 

A10 Capital on May 11 announced that it established its Lending Group. The group originates first-mortgage commercial real estate loans and provides financing to investors for distressed debt purchases secured by commercial real estate. Boise-based A10 Capital is an integrated firm that finances commercial real estate and provides services to resolve troubled assets.

A10 Capital’s first-mortgage loan program fills the void between conventional loans and “hard money” loans, the company said in a release. A10 Capital specializes in alternative funding for situations that conventional lenders typically avoid, such as below-average occupancy, lease-up or turnaround situations. Preferred loan sizes range from $2 million 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 commercial mortgage-backed securities markets are shut down,” A10 Capital CEO Jerry Dunn said. “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.”  

Real estate owners are using the company’s capital market bridge program until the credit markets return, A10 said, adding that 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 who have simply run out of options.

“Some clients refer to us as a ‘warm money’ or ‘firm money’ lender,” said Ken Wilson, A10 Capital executive vice president. “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.”

A10 raised more than $100 million in capital two years ago, in anticipation of the current credit crisis. A10 Capital said it 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 also has offices in Seattle, Denver, Salt Lake City and New York City. To read more about the company, click here.

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