A10 Capital opens Midwest office
June 28, 2010 | Mark Thomton | Print Article | Email this Article
A10 Capital, a Boise, Idaho-based commercial real estate financing firm, has opened in new Midwest division in Chicago. Greg Cazel has been named an executive vice president and will oversee the Chicago office.
Greg Cazel
The firm announced a $100 million capital fund in March that will be used to target financing opportunities that would otherwise struggle for assistance.
“We have a unique opportunity right now,” says Cazel. “We are going to help borrowers and property owners and try to turn around deals. Banks can’t do a lot of real estate lending right now.”
Banks have been willing to lend more of late, but only to secure properties at low loan-to-value ratios. A10 will attempt to fill a niche by taking on deals that would be too small for CMBS assistance, but possibly deemed too risky for traditional bank lending. The firm will seek deals across all property types.
As banks move to establish cash on balance sheets, many will be willing to sell some commercial loans at considerable discounts. Theoretically, A10 will finance those deals, allowing the new owner to make capital improvements on property, re-tenant or increase occupancy, and then sell it back to a traditional bank in a timely manner.
A10 believes that the market is just right for this approach to work. Previously, many banks have been hesitant to sell as valuation has been murky at best. But as more loans come due and a general bottom is perceived to be near, many will have to make these deals in the coming months.
“The firm has been around for more than two years, but there haven’t been a lot of opportunities,” said Cazel. “Now, it seems that the market is finding a bottom. There are a lot of properties in the $2-$10 million range that need financing. We have a good niche.”
Tags | A10, Distressed, finance
