VIRGINIA BEACH, VA—The capital markets are clearly back, but arethey back for buildings that are only 35% occupied and in asuburban office marke to boot? Well, probably not-borrowers willlikely find their traditional lenders are not interested.Fortunately, along with a robust CMBS market and bank lending thatis 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 officebuilding in suburban Norfolk that was only 35.5%occupied. "The capital markets are doing a lot better today andthere 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 wherethere are less lending options available and that is our sweetspot."

A10 recently provided a $5.2 million non-recourse bridge loan tofund the acquisition of the Class B property, called theExecutive Tower. The commercial mortgage providedapproximately 65% leverage.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.