A10 Capital Lands $75M Investment from KKR
- Feb 11, 2016
By Scott Baltic, Contributing Editor
Boise, Idaho—Leading middle-market CRE lender A10 Capital of Boise, Idaho and Dallas has closed a $75 million investment facility from global investment firm KKR, A10 announced Wednesday. The platform investment reportedly will bolster A10’s core capital base to fuel the growth of its on–balance sheet bridge and permanent loan products.
“A10 Capital provides both bridge and permanent commercial mortgages nationwide from $1 million to $20 million per property,” A10 CEO Jerry Dunn told Commercial Property Executive. “Larger loans are considered on a case-by-case basis, and we fund portfolios up to $200 million.” A10 has funded over 30 million square feet of commercial properties.
“What distinguishes A10 is its strong track record and unique origination platform that has generated consistent growth,” Dev Gopalan, head of U.S. Private Credit at KKR, said in a prepared statement. “A10 is positioned to be an effective non-bank CRE lender, able to compete with bank, CMBS, and life company lenders at time when they are being significantly and adversely impacted by new financial regulation.”
A10 is backed by four significant institutions: KKR, asset management firm BlackRock, global private equity firm H.I.G. Capital and the credit affiliate of Thomas H. Lee Partners.
A few recent examples indicate the diversity of the transactions in which A10 is involved.
Last May, A10 funded the refinancing of two Class B medical office buildings in Austin, Texas, for an unidentified sponsor focusing on opportunistic properties. The $4.6 million bridge loan was structured on a non-recourse basis and was described as small but complex, involving a major tenant potentially expiring during closing, a ground lease, an “appraisal issue” and a maturity default with a CMBS lender.
In November, A10 closed a $67 million bridge loan to fund the acquisition and lease-up of a 12-property portfolio of unstabilized retail, industrial and office buildings in metro Atlanta for Stream Realty Partners of Dallas. Proceeds were used to fund the acquisition, a capital improvement plan and future lease-up costs.
And in January, A10 closed a $35 million, 10-year, fixed-rate permanent loan for the acquisition of a 23-story Class A office building on Wacker Drive in Chicago for an unidentified sponsor. The property reportedly is not yet at market occupancy level, and the mortgage was structured on a non-recourse basis.