A10 Capital, a national provider of middle-market commercial real estate loans, has closed on a $27 million bridge loan for Continental Equities Group’s 535 Broadway as it moves to expand its New York business.
The loan refinances the 5-story, 14,500 s/f property includes a ground-floor leased to the Lucky Brand national clothing line, and four loft-style 2,500 s/f apartments above.
A10 Capital structured its financing as a two-year, floating rate bridge loan. It refinanced the borrower’s existing loan of $23.5 million, and provided an additional $2 million in proceeds to the borrower at closing.
“This is a valuable property in a prime location, although relatively small by New York City standards. The middle market expertise of A10 Capital, along with our partnership with Meridian, helped the borrower realize the full value of 535 Broadway,” said Chris McDaniel, Executive Vice President at A10 Capital, who structured and closed the loan.
Cary E. Pollack, Managing Director at Meridian Capital Group, who arranged the financing together with Judah Neuman, Vice President at Meridian Capital Group, added, “We are pleased to have worked with A10 Capital and the Jangana siblings, Jack Jangana, Jenny Haim and Joyce Reiss, of Continental Equities Group on this financing.
“A10 understood the borrower’s needs as well as the inherent value of the property and worked with us to deliver Continental a financing structure that that will allow them to maximize the value of this high-quality asset in the heart of SoHo.”
Jerry Dunn, CEO of A10 Capital said the deal closes during a busy fourth quarter for A10 Capital.
“We are extremely pleased that our business continues to expand with new borrower relationships, such as Continental Equities. We believe our business model better serves these borrowers as they look for non-recourse terms and greater certainty in an otherwise volatile market,” said Dunn.
Dunn said borrowers are attracted to A10’s menu of multiple loan products, commitment to keeping all loans on its balance sheet, and in-house servicing for the life of the loans.
“We believe our full-service platform and one-stop business model is unique in the commercial real estate lending industry,” he added.
Dunn also attributes the growth in volume to the company’s investment in new senior-level talent and focus on areas of the country with significant growth potential.
Over 30 new employees have joined A10 year-to-date, including new loan originators in key markets and senior executives in Texas, California and New Jersey.
Dunn added, “Our footprint is expanding and we expect the recent business volume will continue to grow through 2017 and beyond.”