ATCO Starts Nationwide Mezzanine Loan Platform


New York-based ATCO Properties & Management is starting a new investment program to give loans for commercial properties in central business districts in certain areas of the country, Commercial Observer has learned.

Those markets include Austin, Nashville, the Raleigh-Durham-Chapel Hill area, Salt Lake City and assets around commuter-rail stations in the New York City area. The ATCO City Center Real Estate Loan Program will delve out first mortgage loans, preferred equity for office and retail assets and mezzanine debt.

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“We are committed to finding key opportunities in the best of U.S. secondary markets outside the gateway cities,” said ATCO Co-President Damon Hemmerdinger in prepared remarks. “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.”

Financing terms will range from $1 million to $5 million, according to ATCO, with up to 85-percent loan-to-value (ATCO will go up to 90 percent in certain cases). Loans will be non-recourse, with the exception of run-of-the-mill carve-outs. The financing is also structured coterminous with senior debt.

Mr. Hemmerdinger is heading up the new venture with Neil Adamson, ATCO’s vice president of finance and acquisitions, and associate Ryan Huber.