A10 Capital Provides $4.6 Million to Finance a Distressed Debt Purchase
Boise, ID. June 08, 2009 – A10 Capital, a fully integrated firm that finances commercial real estate and provides services to resolve troubled assets, announced today that its Lending Group provided $4.6 million to finance a distressed debt purchase. A10’s customer is an opportunity fund that bought the defaulted loan, with a $22 million face amount, for approximately $10 million. The acquired note is secured by a very large multi-family complex with over 85% occupancy. The purchased note was in default because the property was over-leveraged by the current owner.
The distressed debt financing provided by A10 Capital enabled the opportunity fund to leverage their returns and magnify their projected IRR on the purchase. The transaction was structured on a non-recourse basis to the general partners of the fund. A10’s financing also increased the opportunity funds purchasing power by providing a majority of the capital to the transaction. A10 Capital closed the transaction in less than three weeks.
“We were happy to finance the purchase of this defaulted loan since we share the fund’s belief in the property and the price, and have confidence in their ability to resolve the debt in a safe and profitable manner,” said Jerry Dunn, CEO, A10 Capital. “A10’s highly experienced team worked ‘elbow-to-elbow’ with the opportunity fund to assist them in due diligence and the closing of this complex transaction on the required timeline.”
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 seasoned and proven team has closed $30 billion of commercial transactions and brings a track record of successfully operating in distressed environments dating back to opportunities arising from the Resolution Trust Corporation in the 1980s. A10 leverages the skill set of its platform and team to operate in three complementary lines of business.
- Senior Lending. Senior loans on commercial real estate ranging from $500,000 to $10 million. Loans are held on balance sheet and serviced in-house. Loan types include mini perms for lease-up situations, “nearly bankable” loans for situations just outside of bankable structures, and note purchase loans for performing and distressed debt purchases.
- Opportunity Fund. Opportunistic investments through a separate private equity fund. Targeted transactions include mezzanine loans, equity investments, and DIP financing.
- Advisory. Various advisory and consulting services for the workout of all types of troubled credits and real estate assets.
For Further Information Contact:
Cathy Clarke
CNC Associates
508-833-8533
cathy@cncassocs.com