|Dealmaker of the Day|
A10 Capital, Boise, Idaho, provided a $7.2 million non-recourse bridge loan secured by an unanchored Class B shopping center in Oklahoma.
The borrower, a private real estate investment firm specializing in acquiring and managing value-add properties, will use the initial $5.6 million advance to fund acquisition, cover operating deficiencies and pay for tenant improvement and leasing commissions on two recently signed leases.
In addition, the loan includes a $785,000 “good news” facility to fund future leasing costs to get the 59 percent occupied property fully stabilized.
“Due to the property’s occupancy and debt-service coverage issues, the borrower was unable to secure bank financing despite the high quality of the real estate collateral and the strong sponsorship,” said Jerry Dunn, A10 Capital’s CEO. “A10’s bridge loan enabled the borrower to buy this value-add property and our funding facility will enable the borrower to lease-up the asset over the next few years.”
Dunn said Triad Capital Advisors Inc., Kansas City, referred the loan to his firm.
A10 Capital also closed a $4.3 million bridge loan secured by three un-stabilized Class B office buildings in Georgia. An initial $2.9 million advance funded the acquisition and provided proceeds for operating deficiencies and to cover tenant improvement and leasing commissions on two recently signed leases. The loan also has a $1.4 million “good news” facility to fund future leasing expenses needed to get the 42.6 percent occupied property stabilized. The firm structured the transaction on a non-recourse basis.
Chuck Taylor, A10 Capital’s executive vice president of Southeast markets, structured and closed the transaction. “Due to the property’s low occupancy, the borrower was unable to secure financing from traditional lending sources,” he said. “A10’s bridge loan provided the borrower an immediate source of working capital and a future funding mechanism to enable [it] to reposition the asset over the next few years.”
Stevens Financial Services, Atlanta, referred this loan to A10 Capital.