ReCap Secures Competitive Commercial Refinance Rate for Large LI Developer

Online, February 21, 2012 (Newswire.com) - Real Estate Capital of America (ReCap) is proud to announce that it has secured a $12M refinance loan for a medical office building and a self-storage facility in Suffolk County, Long Island. The rate was 4.75% fixed for 10 years. In this historical low interest rate environment, real estate owners should take advantage of low rates to better position themselves for the real estate recovery. However, banks are hesitant to lend and commit themselves to long-term fixed rate. Unlike residential mortgage rates, where the rate is published and most banks are within 1/10 of a percentage difference, commercial mortgage rates vary widely and the market is dominated by regional and community banks.

Johnny Su, Chief Operating Officer of Real Estate Capital of America, says, "Currently, the best 15-year fixed rate for residential loan today is 3.25% but for commercial loans, it can range from 5% to 8% for the same 15-year term. "Most commercial lenders do not even offer 15-year fixed loan and only offer 5-year fixed loan. Su advises, "Given this wide discrepancy, it is more important than ever that to have the best financing advisor who has in-depth knowledge and extensive access to the capital market in order for them to be able to take advantage of the historical rate and lock in for the longest fixed term."

The client, Nazzaro Associates, is a prominent real estate owner in Long Island. Mr. Jim Nazzaro, President of Nazzaro Associates, said, "After speaking with several banks whom quoted me from 55% to 70% property value and rate from 5% to 6.25% on a 5-year fixed term and no one seemed eager to do more than 5-year fixed term or do the loan at all." Nazzaro added, "I realized that I needed to hire an experienced advisor that I can trust to get me the best deal. And Johnny Su, COO, of ReCap was definitely the best I can find and trust. "

Su states, "Since the financial crisis, the big banks no longer dominate the commercial lending market and the market is so fragmented with regional and community lenders, it's harder than ever for real estate owners, even the most experienced one, to get financing." Su also warned, "This is new banking era - the post-Lehman, financial meltdown era; Banks are more likely to say no than yes."

Tomer Dicturel, CEO of ReCap, adds, "In this tough economy, every penny counts, getting the best financing will help the client improve the property cash flow, better position themselves for win in the long term, to have the ability to take advantage of other opportunity as the real estate improve. We are here to help our clients better position themselves for the long term because when they win, we win."