Clopton Capital is offering a hotel construction program for owners and developers of hospitality properties nationwide. This targets developments with total costs between $5 million and $20 million.
The real estate capital firm put together the construction lending program to fill a gap in hospitality construction that currently exists in the market.
“We are currently seeking hotel developers and owners with whom to work with and are in need of construction lending, ” said Jake Clopton, founder. “The major benefit of our program is that we combine the origination of the construction loan, the mini perm, and the permanent loan all into one. Borrowers walk away from our closing table with a full take out commitment from their construction loan, the perm loan being non-recourse adding extra value to the program.”
Developments with major hotel flagships such as Hilton, Hyatt, Marriot, and IHG are eligible for this particular program, but they will also take on other flagships on a case by case basis. The only developments that will not be a fit would be independent hotels and very small projects.
Clopton Capital is a nationwide originator for several CMBS loan conduits. Earlier this month, the firm announced that it was seeking active funding opportunities for gas station and convenience store properties.
Clopton said that pricing for real estate loans and credit facilities are incredibly low at the moment. As a result, finding a coupon of less than 4% would be achievable for strong operators that have several locations.