A10 Capital

About A10 Capital

A10 is a direct balance sheet lender focused on providing bridge loans, permanent loans, and bridge-to-permanent loans secured by middle market commercial real estate located in primary and secondary markets nationwide. A10 lends to business owners, real estate investors, and developers only and does not make primary residence loans. A10 was founded in 2007 by Jerry Dunn and Ken Wilson, experienced capital markets executives and commercial debt financiers. Since its inception, A10 has financed over 57 million square feet of commercial real estate in the geographic locations where it lends. A10 is backed by Gemspring Capital, Schroders, BlackRock, KKR and H.I.G. Capital.

A10 recently funded a $15.8 million bridge loan secured by a 64.2% occupied office portfolio.

Loan Programs

A10 funds bridge, permanent and bridge-to-permanent loans from $3 million to $30 million for individual commercial real estate property, and up to $200 million for multi-property pools. A10 lends to single-purpose entities owned by business owners, developers, and property investors looking to purchase, refinance, improve or cash-out of Class A or B commercial real estate (Class C property is considered on a case-by-case basis). A10’s concentration has always been on middle market (not small or large) commercial real estate loans and the company has differentiated itself through a number of unique program attributes outlined below.  

Below are a sampling of reasons why a borrower would take out a loan from A10:

  • Desire to work with an institutionally backed balance sheet lender
  • Service, A10 focuses on providing its clients with white-glove support
  • Need of a lender familiar with highly structured loan transactions
  • When competitive non-recourse, non-CMBS or non-Life Co. financing is required
  • Middle market financing is required for auction purchases, REO acquisitions, traditional brokered acquisitions, portfolio acquisitions, recapitalization, distressed debt purchase, DPO or maturing loan refinancing

See how much financing you qualify for

Bridge Loan Program Highlights / Guidelines

A bridge loan is a short-term loan that usually assists in bridging a borrower from a less favorable situation to a more favorable situation. For example, a borrower may take out a bridge loan to pull cash-out of his property to pay off lingering debt and improve a low credit score, so he can refinance into a permanent loan. Commercial real estate collateral is essential to A10’s program and borrowers without hard commercial real estate collateral are not eligible for financing.   

Loan sizes from $3 million to $30 million for individual properties, or up to $200 million for multi-property pools

  • Loans secured by office, retail, industrial, multifamily, self-storage, mixed use, and mobile home parks (hospitality considered on a deal-by-deal basis)
  • Existing buildings only, no ground-up construction
  • Class A and Class B property only, Class C property considered on a deal-by-deal basis if mitigating factors apply
  • Additional funding is available for CapEx, TIs and lease-up costs
  • No set minimum credit score requirement
  • Loan-to-value (LTV) up to 80% (60-70% preferred)
  • No set occupancy requirement or minimum debt-service coverage ratio
  • Up to 7 year loan terms available (3 to 5 year terms plus extensions)
  • No set credit score minimum, loans are non-recourse to key principals with standard bad act carve-outs
  • Loan origination fee is determined by quality of property, strength of sponsor, and loan characteristics
  • Fixed and floating interest-only rates competitive with bank and CMBS mortgage constants
  • Exit fee is determined by quality of property, strength of sponsor, and loan characteristics
  • Loans can be prepaid at any time but a reasonable minimum interest period aligned with each borrower’s specific business plan is typically required

Permanent Loan Program Highlights / Guidelines

A10 provides sophisticated permanent long-term financing solutions for middle-market commercial mortgages. A10’s permanent loans provide flexible, long-term financing for stabilized commercial real estate, with loan terms up to 20 years and without the hurdles of defeasance.

Loan sizes from $3 million to $30 million for individual properties, or up to $200 million for multi-property pools

  • Loans secured by office, retail, industrial, multifamily, self-storage, and mixed use (other property considered on a deal-by-deal basis)
  • Stabilized Class A and Class B buildings in primary and secondary markets only
  • Loan-to-value (LTV) up to 75%
  • Debt-service coverage ratio minimum of 1.25x on underwritten net cash flow, and a minimum of 1.20x on multifamily
  • Loan terms of 7, 10, 12, 15 and 20 years with amortizations out to 30 years
  • No set credit score minimum, loans are non-recourse to key principals with standard bad act carve-outs
  • Loan origination fee is generally offered at par
  • Fixed, competitive interest rates in line with Life Co. and CMBS
  • No cumbersome and complicated defeasance, assumability option available to counterbalance standard yield maintenance

Bridge-to-Permanent Loan Program Highlights / Guidelines

A10 provides commercial real estate borrowers the option to obtain a transitional loan that provides the benefits of a short-term bridge loan with those of a long-term permanent loan. This hybrid loan product allows borrowers to secure a permanent exit strategy from their short-term financing upfront.

Loan sizes from $3 million to $30 million for individual properties, or up to $200 million for multi-property pools

  • Loans secured by office, retail, industrial, multifamily, self-storage, and mixed use (others considered on a deal-by-deal basis)
  • Existing Class A and Class B buildings in primary and secondary markets only (no ground-up construction)
  • No set credit score minimum, loans are non-recourse to key principals with standard bad act carve-outs
  • During lease-up stage additional funding is available for CapEx, TIs and lease-up costs
  • During lease-up stage the bridge loan terms outlined above apply, the exit fee is reduced when converted to permanent financing and prepayment protection is tied to the expected hold period
  • Upon stabilization the loan will convert to the permanent terms outlined above and the origination fee will be waived

The Loan Process

LendVer did not shadow the application or loan process for A10 but its website offers basic information about how to get started. Applicants are encouraged to fill out a short online application form or to contact A10 directly to start an application. A10 also lists its staff’s names and contact information on its website.

A10 is a direct balance sheet lender, does not sell its loans and performs all loan servicing in-house. A10 offers 100% in-house white-glove service which is described on its website as follows:

We offer in-house legal, in-house underwriting and site visits, guaranteed closing timelines, and cradle-to-grave servicing — no matter where you are in the country. We manage every aspect of our business ourselves so we can understand your property and needs, streamline processes, and meet your deadlines.

Our outstanding service includes:

In-house legal. We won’t increase your closing costs through inflated attorney bills thanks to our in-house legal team. You’ll save $50,000 to $100,000, which will significantly lower your effective cost of borrowing, especially on a middle-market loan.

We never miss a closing deadline. We know value and earnest money is lost when your loan doesn’t close on time. That’s why we guarantee that we will meet your closing deadline, even if it’s tight. You’ll close faster, putting you in a better position to win competitive bids.

In-house underwriting and site visits. We don’t outsource these critical functions. We’ll be an extension of your due diligence team, providing valuable insights and ensuring continuity throughout the closing process.

Cradle-to-grave servicing. The same team that underwrites your loan will be with you until your loan is paid off. You’ll never have to start from scratch or worry about navigating through bureaucracy.

Nationwide coverage. A10 has boots on the ground in regional offices throughout the country, and we have closed loans in nearly every MSA in the nation.

No-cost capital introductions. Our position as the most active middle-market bridge lender has given us broad, deep relationships and proprietary deal flow. We often match local operators with institutional equity sources at no cost.

See how much financing you qualify for

Pros

  • A10 has financed over 57 million square feet of commercial real estate making the firm an expert in its field.
  • A10 is a direct balance sheet lender backed by some of the largest institutional investors in the world.
  • A10 provides white-glove concierge service and actually guarantees it will meet your closing dead-line.
  • Through its own unique programs, A10 offers the benefits of CMBS and Life Co. financing without the headaches and red tape.
  • Because A10 offers bridge-to-permanent financing, the firm can assist in funding the entire life cycle of your commercial property.

Cons

  • A10 offers middle market commercial real estate financing between $3 million and $30 million ($200 million for multi-property pools), so borrowers in need of smaller or larger financing will not be a good fit for A10.
  • Although A10 does not require defeasance, its programs may require yield maintenance which can also be a very costly prepayment penalty.

Why A10 Capital is the Best

A10 has operated as a premier middle market commercial real estate lender since 2007 and has financed over 57 million square feet of commercial real estate. A10’s experience, white-glove service, closing date guarantee and institutional backing make it a reliable choice for any borrower looking for certainty of execution. A10 offers loan sizes from $3 million to $200 million, providing capital to borrowers with a wide range of financing needs. A10’s competitive, non-recourse financing, make it a great option for those borrowers looking for aggressive terms without the complexities or requirements of CMBS or Life Co. loans.

View our Featured commercial real estate lenders South End Capital, Revere Capital, and Emerald Creek Capital.

Tags: ,