Capstone Capital is continuing to strengthen its first quarter with the loan closing of Clemons Lofts, a six-story, mixed-use building in downtown Chattanooga, Tennessee.
“The borrower was shaking up the status quo by taking a stabilized multifamily property and converting it to a short-term rental property,” said Scott Yerkes, Capstone Capital vice president. “Without existing precedent to follow, it was a riskier deal to shop. It was an interesting opportunity for us and the team enjoyed the challenge.”
Located at 730 Chestnut Street, Clemons Lofts is comprised of 54 loft-style units and nearly 8,000 square feet of retail space on the ground floor. Capstone Capital acted as the exclusive commercial mortgage broker for the deal, obtaining competitive financing for the buyer.
“This was a deal of firsts for us. Not only were we working with a new borrower, but we also partnered with a new lender to finance their Bridge loan,” expressed Keri Alpers, director of operations. “Once the application was signed, it was such a smooth process. Both the borrower and lender were extremely responsive and a real pleasure to work with. I’m excited to work with them in the future.”
Capstone Capital specializes in permanent, non-recourse debt for commercial real estate. Capstone Capital has a strong presence throughout the Southeast, Mid-Atlantic and Midwest, with loan closings in Florida, Indiana, North Carolina, Ohio, South Carolina and Tennessee.