Six Delaware Statutory Trust (DST) Fundings in 12 Months, Totaling $200 Million
BOISE, ID / ACCESSWIRE / April 20, 2022 / A10 Capital, a vertically integrated, full service, direct bridge, and permanent commercial real estate lender specializing in $5 million to $50 million+ commercial real estate loans, announced they have funded a Delaware Statutory Trust (DST) loan for the acquisition of the 4th & J multifamily property for Versity Investments, LLC located in downtown San Diego, CA. Over the last 12 months, A10 has funded six DST loans for a total of $200,000,000.
"We are thrilled to partner with A10 once again on one of our latest acquisitions. Like us, they recognize the irreplaceable quality of the real estate of 4th and J, and the dynamic market where it's located," said Blake Wettengel, Chief Executive Officer and Co-Founder of Versity Investments, LLC. "We are excited to add another project with A10 that brings our investors healthy returns in a stable, growing market."
Delaware Statutory Trust (DST) structures are attractive to 1031 exchange investors, who can qualify for a 1031 exchange when they sell a commercial property. DST provides a safe harbor for exchange and enables them to enjoy the investment in commercial real estate without any of the operational headaches with professional management and asset management in place.
"Many lenders don't want to work with DST loan structures because the IRS issued seven ‘deadly sins' of DST's which place limitations on the trustee of any DST property," said Kurt Gregg EVP Originations for A10 who sourced the loan from Colton Smith, Sr. Director of Capital Markers, of Walker & Dunlop. Gregg added, "The number one limitation which scares lenders is that once the DST offering is closed, the DST is prohibited from making future capital calls. "
Colton Smith said, "Our firm works with hundreds of lenders, and it is refreshing to find a funding partner like A10, who has developed expertise in financing DST loans, and can deliver a smooth process in a consistent timely manner."
The transaction was structured on a non-recourse basis and proceeds of the loan were used to fund the acquisition of the property as well as committed funds for a future Tenant Improvement/Leasing Commission (TI/LC) facilities.
About A10 Capital
Founded in Boise, Idaho in 2007, A10 Capital is a vertically integrated, full service, direct bridge, and permanent commercial real estate lender. The firm focuses on financing $5 million to $50 million+ per property and portfolio loans up to $200 million nationwide. A10 originates and services all loans in-house by A10. The company sources loans directly with Borrowers, and through the best mortgage bankers in the country. Since its inception, A10 has financed over 550+ individual transactions, totaling over $5.3 billion in senior secured bridge and permanent loans across 40 U.S. States.
For Further Information Contact:
Cathy Clarke
CNC Associates
C: 617-527-2089
SOURCE: A10 Capital