Gallery Image #1
Situation/Challenges

  • Refinance of 1980’s Vintage Asset substantially renovated by Borrower in 2015;
  • Property’s occupancy at 2015 acquisition was 74%;
  • Borrower had achieved an 87% occupancy with momentum to lease additional vacant space, but the recent bankruptcy of a material tenant took occupancy to 64%;
  • Borrower’s current Lender did not have the ability to modify the loan post-closing to address additional TI/LC needs to backfill bankrupt tenant’s space;
  • Borrower needed additional loan term and TI/LC dollars to backfill bankrupt tenant’s space;

Solutions/Highlights

 

  • Experienced and well capitalized Borrower injected additional fresh equity into the transaction demonstrating their commitment to the property and their business plan;
  • A10’s loan provided Borrower with additional time to backfill bankrupt tenant space and stabilize the property for exit;
  • A10’s loan provided Borrower with additional TI/LC dollars to lease bankrupt tenant space as well as additional vacant space to stabilized occupancy;
  • Property now has a more diverse tenant roster, staggered lease expiration schedule and no binary risk associated with a material tenant;
  • Property is located at the intersection of two major D/FW freeways;
  • Recent leasing activity at the property supports Borrower’s budget / business plan for vacant space (and stabilized projections for exit);