NEW YORK CITY—ATCO Properties & Management has launched the ATCO City Center Real Estate Mezzanine Loan Program, an investment vehicle designed to provide financing to central business district commercial properties in select markets across the country.
The 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 CBDs of the top Metropolitan Statistical Areas 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 SVP, 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 says. “We are committed to finding key opportunities in the best of US secondary markets outside the gateway cities.”
The financings will be structured using the following terms: $1 million to 5 million; up to 85% LTV, with 90% LTV in special circumstances; non-recourse, except typical carve-outs; term co-terminus with senior debt.
ATCO 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. Its assets including notable Manhattan properties such as 555 Fifth Ave., 40 Central Park So., 41 W. 58th St., 630 Third Ave., 381 and 373 Park Avenue So.
Nationally, the firm owns properties in seven states, and internationally has investments in London, Barcelona, Paris, Brussels, Milan, Frankfort, Ingolstadt and Dublin.
Last year, ATCO and its investment partners acquired 137 E. Franklin St., a 96% occupied, 100,000-square-foot commercial building in downtown Chapel Hill, NC; 1300 Guadalupe St. in downtown Austin, a 100% occupied, 45,000-square-foot creative/loft-style office building two blocks west of the Texas State Capitol; and 38 Main St. in Westport, CT, a 10,000-square-foot retail property poised for complete redevelopment. Earlier this year, ATCO acquired 600 Summer St., a boutique office building in downtown Stamford, CT.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
