DBRS Confirms Primary and Special Servicing Evaluations at Adequate for A10 Capital, LLC

DBRS has today confirmed evaluations of Adequate for A10 Capital, LLC’s (A10 or The Company) Primary Commercial Mortgage Servicing and Special Commercial Mortgage Servicing capabilities.

A10, founded in June 2007, is a privately owned specialty finance company headquartered in Boise, Idaho, with a secondary office with senior staff in Dallas, Texas. The Company’s core business is originating and servicing small- to middle-market commercial mortgage loans on a nationwide basis. The Company is backed by an affiliate of H.I.G. Capital, a global private equity firm with over $12 billion of capital under management.

A10’s greatest strength is its experienced management and staff and their ability to perform hands-on asset management. Additionally, the Company employs a strong credit committee process throughout the life of a loan, from loan origination through post-closing. Due to its relatively small size, one of A10’s greatest challenges remains its key employee risk. In 2012, the Company gained commercial mortgage-backed securities (CMBS) investor reporting and servicing experience through the servicing of its first securitization. In the same year, A10 strengthened its risk rating program and implemented an audit program utilizing a third-party firm to audit its asset management and servicing practices on a quarterly basis.

As of February 28, 2013, A10’s servicing portfolio consisted of 47 loans, with a total outstanding loan commitment of approximately $209 million. The servicing portfolio is diversified by property type and location.

The servicer evaluation reflects a comprehensive review of the A10 organizational structure, the management team, asset administration, loss management, technology, staffing and training, procedures and controls and financial strength.

Notes:

All figures are in U.S. dollars unless otherwise noted

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodology is DBRS CMBS Servicer Evaluations, which can be found on our website under Methodologies.