Clopton Capital, a Chicago-based secondary market commercial real estate lender, is announcing the availability of nonrecourse loans with 10-year fixed rates below 5%.
Clopton Capital says that it is seeking to construct a loan portfolio of at least $75 million worth of nonrecourse commercial loans by the close of the second quarter. Given the volume of five-year commercial loans set to expire in 2011, alongside the historically low rate environment, Clopton Capital is expecting strong interest in this product. The loan is structured as a standard commercial-mortgage backed securities loan, with fixed rates up to ten years and amortizations up to 30%. Currently, the preferred property types include flagged hotels, triple-net-lease retail, strip centers, midsized office properties, mixed-use properties, senior housing/assisted living and apartments.
‘We hope to make a serious impact with the announcement of this product,’ says Jake Clopton, president of Clopton Capital. ‘The folks that are going to benefit the most from this are the middle market property owners that are looking for cash-outs, refinances, and nonrecourse debt. We've seen a lot of borrowers targeting nonrecourse options while also expecting recourse loan rates. This new program allows Clopton Capital to offer just that – the best of both worlds.’