A10 Capital, a full-service nationwide lending business specializing in middle-market commercial real estate loans, recently closed a $35 million fixed-rate permanent loan for the acquisition of a 23-story Class A office building on Wacker Drive in the Chicago CBD.
A10 Capital Executive Vice President Dan Pavlinik, who structured and closed the loan, said, “The sponsor, (a prominent family office), is a long-term real estate holder and was interested in A10’s ability to offer 10-, 15-, and 20-year fixed-rate terms to lock in a low interest rate for an extended period. And even though the property was not yet at market occupancy level, we were able to collaborate on a creative structure that optimized their permanent financing from day one.”
An executive with the sponsor’s firm added, “We selected A10 because they are a balance sheet lender. The property has a lot of moving parts, so we needed a lender that would be creative and flexible on structuring the loan up front, and a trusted relationship to call on for any post-closing servicing issues. Just as important, in the midst of significant instability in the credit markets, A10 closed the loan on terms that were agreed to before the current market volatility set in.”
The permanent mortgage was structured on a non-recourse basis and a 10-year fixed rate term.