DBRS Confirms A10’s Primary and Special Servicer Evaluations

DBRS, Inc. (DBRS) has today confirmed A10 Capital, LLC’s (A10 or the Company) Primary Mortgage Servicing of Good and its Special Mortgage Servicing evaluation of Adequate.

A10, founded in June 2007, is a privately owned specialty finance company headquartered in Boise, Idaho. 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 $20 billion of capital under management.

A10’s greatest strength is its experienced management and staff and their ability to perform hands-on asset management, including its ongoing comprehensive and objective asset-level risk rating program. Through its capital markets transactions over the past several years, the Company continues to develop its investor reporting and surveillance expertise. A10 maintains a strong credit committee process throughout the life of a loan from origination through payoff. The servicing group continues to expand, in both its Boise, Idaho, and Dallas, Texas, offices. While the Company proactively hires experienced staff to keep up with its growing portfolio, A10 is still relatively small. As a result, one of the Company’s greatest challenges remains its key employee risk.

As of July 31, 2016, A10’s servicing portfolio consisted of 127 loans secured by 142 properties with a current outstanding balance of approximately $885 million.

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 as well as financial strength.

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

The applicable methodology is North American Commercial Mortgage Servicer Evaluations, which can be found on our website under Methodologies.

DBRS will publish a full report shortly that will provide additional analytical detail on this action. If you are interested in receiving this report, contact us at info@dbrs.com.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.