Bridge Lender Rescues Low-Occupancy Office Deal

VIRGINIA BEACH, VA—The capital markets are clearly back, but are they back for buildings that are only 35% occupied and in a suburban office marke to boot? Well, probably not-borrowers will likely find their traditional lenders are not interested. Fortunately, along with a robust CMBS market and bank lending that is firing on all cylinders, bridge providers are also out in force, with more providers entering by the day.

One example is Boise, ID-based A10 Capital, which recently helped to finance the acquisition of an office building in suburban Norfolk that was only 35.5% occupied. “The capital markets are doing a lot better today and there is more liquidity available than there was two years ago,” Chuck Taylor, principal and EVP with the company, tells GlobeSt.com. “That said, we still find there are places where there are less lending options available and that is our sweet spot.”