Clopton Capital announced yet another product aimed at boosting lending in commercial real estate (CRE).
The CRE finance firm said it will be offering CRE owners and operators the chance to lock in historically low interest rates for CMBS loans.
In a press release, the firm stated that treasury rates have dipped to extremely low levels. These rates are offering borrowers the opportunity to refinance and acquire CRE at significantly low rates for non-recourse CMBS loans.
As CMBS loans are based off of treasury rates, the dip in these rates means CMBS rates can also go low, as long as the spread charged to borrowers does not change, Clopton explained in the release. Eligible property types would include multifamily, office, retail centers, hospitality, and industrial properties.
“We are looking to provide financing for a diverse range of property types. Loan amounts range from $3 million up to as high as $50 million and we are seeing rates dip into the low 4%’s for strong properties,” says Jake Clopton, the company's founder.
It is the second time this week that the real estate finance firm has launched a new product offering for the space. Earlier this week, the firm announced a new hotel construction program for owners and developers of hospitality properties nationwide. This targets developments with total costs between $5 million and $20 million.