Industrial Property Loans fall into the wider category of commercial property leveraging that is Clopton Capital’s focus throughout the USA in every city, town and rural district. In our 10+ years of loan procurement activity securing multi-billions of dollars in closed deals we have interfaced extensively with clients that have invested in factories, warehouses, shipyards etc., – anything classified as industrial. Our core borrowers come from the ranks of private investors, small/middle market real estate entities, and family offices nationwide investing through structures that cover partnerships, trusts, corporations, LLCs, Delaware Corporations, estates, and even foreign nationals seeking advances that range between $1 million to $50 million+.
Industrial Property Loan
Our loan programs have a minimum loan size of $1,000,000 with technically no maximum.
The typical maximum 1st mortgage loan to value is 75%, with higher LTV’s of up to 85% available by using mezzanine or pref equity.
Our programs have several fixed rate options, starting at variable rates up to 25 years fixed.
Typically we can achieve between 3 – 5 years interest only at maximum leverage, with full term interest only starting at around 65% depending on the property.
The vast majority of our programs are non-recourse, however some require personal guarantees.
Every market in the United States is available.
Regardless of where the property is in the life cycle, we will have a highly competitive loan option for it.
Types of Industrial Property Loans Clopton Offers
- Conventional mortgages
- Long term fixed rate
- CMBS loans (Commercial Mortgage Backed Securities)
- Life-co loans
- Bridge loans (short-term)
- Construction loans (https://cloptoncapital.com/commercial-construction-loans/)
- Acquisition loans
- Rehab loans
- Refinance, with cash out (https://cloptoncapital.com/commercial-cash-out-refinance/)
Below are the typical terms for our industrial property financing programs
- Up to 75% LTV (lower down payment with credit tenants)
- Up to 10-year fixed (longer with fully amortizing loans)
- Fixed interest rate and floating rate
- Up to 30 years amortization, with interest-only mortgage periods
- Non-recourse and recourse loans
- Construction to perm structures
- Investment property and owner-occupied
- Flexible prepayment, various prepayment penalty structures
- Acquisition, refinancing, construction financing, bridge loans
- First mortgage & second mortgage
- Market competitive origination fee
Industrial property loans clearly have to connect to the circumstances and the specific needs involved. In our experience we see industrial property financing as being anything from purchase to new construction; from refinancing to renovations/ unfinished build-outs; from cash outs to short-term bridge loans – morphing eventually into accommodations that are more permanent. Clopton’s close relationships guarantee you direct access to the most competitive industrial property financing lenders in the USA. Our competent commercial mortgage brokers will find the commercial mortgage/ construction loan/ cash out leveraging/ refinancing loan vehicle/ CMBS/ bridge lending/ mezzanine financing/ preferred equity, and real estate private equity that matches your situation best. We don’t stop there: our analysis goes deep into variable/ fixed interest rate preferences; amortization periods (up to 30 years), interest only options, and with recourse or with non-recourse, to name just a few key considerations. We follow through on every client detail until you are satisfied. Of course, once our due-diligence is done, nothing short of the lowest interest rates and easiest terms possible are an acceptable final position. We make it happen here: https://cloptoncapital.com/.
Here are factual case studies demonstrating Clopton Capital’s industrial property loan closings for its clients over the years
Case study 1: An LLC with investor shareholders was after a mortgage refinance with cash out for an industrial investment property held in Fort Lauderdale for the past 15 years. Several mid-sized companies with long occupancy history occupied the collateral property. We structured a $4 million loan for the LLC with a 10-year fixed interest rate and 25-year amortization with a bank partner that gave the borrower over $3 million as a cash out, being the reward for the evident property appreciation. In addition, the refinancing came with a very low-interest rate, and minimal transaction cost & broker’s fee.
Case study 2: A borrower in the form of a partnership came to us looking to refinance several commercial property loans secured by multi-tenant industrial buildings in Texas. The borrower was hoping to qualify for a fixed-rate mortgage loan on industrial property that would be short in term, fully amortized with principal and interest, and be fixed at a low rate. We arranged a 10-year fixed, 10-year amortization deal with a low-interest rate that set the loan for the entire term and paid off all remaining principal on a fast schedule. The borrower intended to own the property free and clear within 10 years and this deal fully accommodated his desires.
Case study 3: An estate owned an industrial flex building in Michigan that was 100% leased to a multinational company. It came to us looking to refinance a maturing industrial property mortgage that needed some loan repaying. The lease for the tenant only had 2 years remaining, which created a binary risk that many lenders were adverse to. We structured a 36-month bridge loan with a private lender that was able to evaluate the situation. After extensive due diligence, it determined that the tenant would not be leaving. The resultant bridge loan was for $12 million, interest only, 75% loan to value, and non-recourse.
Industrial asset lending is an all-embracing real estate leveraging arena that begins with straightforward factory, warehouse etc., purchase transactions but reaches further afield into the realm of new construction loans or securing bank mortgage advances for renovations or unfinished buildings. Refinancing for maturing industrial real estate mortgages or those under pressure from rising variable interest rates is a robust activity subset. Moreover, if you have held your industrial property for a long time with resultant appreciation and want a hard money cash out, this too is considered to be a viable possibility.
To understand more about industrial asset-backed funding, contact one of Clopton Capital’s commercial mortgage lenders by calling 866-647-1650 or using the Contact Us form available from the menu. You’re always welcome to work with us to find the right industrial property loan rates and financing plans to suit your every possibility. And with low closing costs attached to a straightforward documentation and underwriting process, your commercial loan process will be stress-free.