Clopton Capital is a national commercial mortgage broker that helps Private investors, small/middle market real estate entities, and family offices everywhere in the US secure Commercial construction loans for Industrial, commercial, and mixed-use real estate developments. We have close relationships with the most important commercial property construction lenders in the market and we warrant to arrange direct access to them as the shortest, most effective route to a closing a deal for you. New construction is not the only type we deal with: we can demonstrate a proven capability to also fund projects that have overshot budget or are distressed, right to the point of completion. Talking more specifically, we are adept at finding an asset-backed financing solution for every construction scenario you can conceive of, be it ground-up or even partial builds and renovations.
Here are some commercial options on our construction loan menu:
Depending on the development and location, we can offer several options for construction lending, refinancing and loan term options.
- Conventional (bank/credit union)
- Private debt
- HUD (multifamily)
Typically, loan terms for construction & development are:
- Up to 75% LTV ratio on commercial loans (85% with mezz or pref)
- Up to 36 months loan term
- With provisions to roll into a permanent commercial mortgage
- Non-recourse construction loans available on business loans
- Structured loan amount from $5 million
- Fixed rate
Below are the property types that we consider for commercial & development loans when setting you up with construction loan support.
- Self Storage
- Mobile Home Parks
- Mixed Use
- Owner Occupied
Once Clopton has completed its due diligence and we are ready to underwrite your real estate construction project, our experienced mortgage brokers have an array of lending solutions at their fingertips. These include commercial mortgages, bridge loans, mezzanine financing, preferred equity, and real estate private equity – many of which can be applied to construction arrangements depending on the circumstances. For example, we are one of the leading commercial loan facilitators in the refinancing arena, a business loan activity with benefits that suit construction financing in many ways.
Are you getting the runaround from local banks and traditional mortgage bank lenders for your construction project? Is this causing you more stress than you expected? If your project ranges anywhere from $5 million to $40 million, then it’s time to contact Clopton. We work with partnerships, trusts, corporations, LLCs, Delaware Corporations, estates, and even foreign nationals to settle on the lowest construction leveraging interest rates and terms that work best for you. Remember, once the construction is completed, we can seamlessly roll you into the next phase of funding for your now completed construction, no matter whether it is designated as for-owner or non-owner occupied.
Commercial Construction Loan dilemmas: some real client case studies resolved by us.
Case Study 1: A borrower structured in a partnership arrangement came to us looking to build a $5 million apartment building in a small suburb outside of Chicago and required working capital or lines of credit. The borrower was a local developer with a strong investor following that was supplying much of the capital for the deal. We were able to structure a 75% LTC construction loan based on the borrower’s deposit and a 3-year mini-perm. This gave the developer the flexibility to qualify, construct and stabilize the project and allowed enough time to either sell or recapitalize it. The commercial construction loan’s high LTC and low fees with special terms are a reflective example of how different formats of lending can be harnessed to meet your funding needs. It is a primary benefit derived in dealing with a comprehensive service mortgage broker with close lender connections.
Case Study 2: A hotel developer investing through a single-purpose LLC in New Jersey wanted to construct a hotel in New Jersey with a $15 million property value. The borrower needed a non-recourse construction loan for the large investor group functioning as the majority shareholder that had been assembled to complete the project, and which had no intention of signing personally. We located a lender through our connections built up over many years willing to structure a 24-month private construction loan at 75% LTC without personal recourse to any investor. The loan allowed for an extension of time, giving the developer the latitude to complete and stabilize the project. Clopton Capital’s stellar credentials helped negotiate this flexibility in an environment where most commercial construction mortgage companies are reluctant to offer such generous leeway.
Case Study 3: Here the borrower, an estate, was zoning in on a $31 million apartment building in Chicago. The borrower demands were “on the edge of possibilit” to say the least: relatively high leverage, low rate, and non-recourse property loan with a manageable loan payment. He was more than happy when we were able to structure an 85% loan-to-value, non-recourse, low-rate construction loan that rolled to a 40 year fixed, 40-year amortization permanent loan upon completion and stabilization.
We are here to answer all and any question as it relates to commercial real estate borrowing for new or unfinished construction. This is only a subset of our comprehensive commercial leveraging service that connects to every aspect of commercial real estate financing.
If this resonates with you, contacting us is easy. Start your loan application by calling us today at 866-647-1650 to speak directly to a Clopton Capital Loan Officer or simply fill out the “Contact us” form. Either way, you will soon be on the road to quickly and precisely knowing your options in line with your financial needs.