|Dealmaker of the Day|
A10 Capital, Boise, Idaho, provided a $6.4 million non-recourse bridge loan to refinance an office building in Hillsboro, Ore.
Kyle Knox, executive vice president of A10 Capital, structured and closed the loan. Demetri Koston and Skip Slavin, vice presidents with Newmark Realty Capital, worked on behalf of the borrower.
A 126,000-square-foot Class B suburban office/manufacturing building secures the interest-only loan, which has a loan-to-value ratio of 63 percent. Knox said the five-year term loan was circled in the low 6 percent range.
“The sponsor needed a lender willing to work with them on a single-tenant property with occupancy issues due to the tenant firm’s downsizing,” Knox said. “This property was a build-to-suit for a tenant that downsized several years ago, which left one building [of the two-building campus] vacant. A10 does a lot of bridge/transitional deals.” He said the sponsor will use the proceeds to refinance an existing loan as well for future lease-up efforts.
“Although the market is tenuous for this particular property type, we were able to secure the financing due to the excellent location and strong sponsorship,” Koston said.
The property lies in a prime technology corridor known as the Silicon Forest, one of the West Coast’s largest technology locations. Other tenants within the business park include HP, Intel and Adobe.