ATCO Properties & Management, a Manhattan-based owner and operator of class A commercial real estate, has launched the ATCO City Center Real Estate Mezzanine Loan Program, an investment vehicle designed to provide financing to central business district (CBD) commercial properties in select markets across the country.
The new mezzanine loan platform will provide first mortgage loans and originate mezzanine debt and preferred equity for office and retail assets in growing markets throughout the United States.
The program’s geographic scope spans the CBD’s of the top Metropolitan Statistical Areas (MSAs) in the nation, including Austin, Nashville, Charlotte, Raleigh-Durham-Chapel Hill, Denver and Salt Lake City, in addition to assets adjacent to commuter-rail stations in the New York City region.
Damon Hemmerdinger, co-president of ATCO Property & Management, will oversee the program, along with senior vice president, finance and acquisitions Neil Adamson and associate Ryan Huber.
“Our expertise in this property type and in our targeted markets enables us to price the opportunity more effectively and to make decisions more quickly than most alternative providers,” Hemmerdinger said. “We are committed to finding key opportunities in the best of U.S. secondary markets outside the gateway cities.”
The financings will be structured using the following terms:
- $1 million to 5 million;
- Up to 85% LTV; 90% LTV in special circumstances;
- Non-recourse, except typical carve-outs;
- Term co-terminus with senior debt.
- ATCO presently owns and manages more than 35 buildings ranging from high-rise office and residential towers to one-story industrial structures and high tech flex buildings, including notable Manhattan properties such as 555 Fifth Avenue, 40 Central Park South, 41 West 58th Street, 630 Third Avenue, 381 and 373 Park Avenue South.
Nationally, the corporation owns properties in seven U.S. states, and internationally has investments in seven countries which include London, Barcelona, Paris, Brussels, Milan, Frankfort, Ingolstadt and Dublin.
Last year, ATCO and its investment partners acquired 137 East Franklin Street, a 96 percent occupied, 100,000 s/f commercial building in downtown Chapel Hill, NC; 1300 Guadalupe Street in downtown Austin, a 100 percent occupied, 45,000 s/f office building situated just two blocks west of the Texas State Capitol; and 38 Main Street in Westport, CT, a 10,000 s/f retail property in the shopping district poised for complete redevelopment.
Earlier this year, ATCO acquired 600 Summer Street, a boutique office building in downtown Stamford, CT.