Refinance and cash-out

Commercial Refinance

Replace expensive debt or pull equity out of a property you own.

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Refinancing for owners who need to replace maturing or expensive debt, or who want to convert accumulated equity into working capital. Common uses include paying off a bridge loan on a stabilized property, taking cash out to fund the next acquisition, and moving from a short-term note to longer-term financing.

A commercial refinance replaces the loan currently on a property with a new one. Owners come to it for three reasons: a note is maturing and needs to be paid off, the current rate or structure has stopped making sense, or the property has gained enough value that the equity is worth putting to work.

A rate-and-term refinance pays off the existing balance and closing costs and nothing more. A cash-out refinance goes further: the new loan is larger than the old one, and the difference comes back to the owner at closing as capital that can fund a down payment, a renovation, or the next deal. Because the money is loan proceeds and not a sale, it does not trigger the tax event that selling the asset would.

Underwriting looks at the property before it looks at the sponsor. Expect a current appraisal, a rent roll and trailing operating statements, evidence that net operating income covers the new payment with margin, and a title search clean enough to place the new lender in first position. Leverage depends on the asset class and on whether the property is stabilized: cash-out is typically capped well below what a purchase would allow, and a property still in lease-up will be measured on what it earns today, not on what the pro forma says it will earn.

We work the file across multiple lenders rather than a single balance sheet, which matters most on refinances — the same property can be priced very differently depending on who is underwriting it.

When this loan fits

Paying off a bridge loan on a property that has reached stabilization.
Replacing a maturing note with longer-term financing.
Converting accumulated equity into capital for the next acquisition.
Getting out of a rate or a structure that has stopped making sense.

What you need to apply

Nothing here is a surprise later. If something is missing we will tell you on the first call.

A current appraisal.
A rent roll and trailing operating statements.
Evidence that net operating income covers the new payment with margin.
A title search clean enough to place the new lender in first position.
The entity documents, if the property is held in an LLC.
A stabilized property — one still in lease-up is measured on what it earns today.

Eligible properties

Multifamily
Retail
Office
Industrial and warehouse
Medical and dental office
Mixed-use

Common questions

What is the difference between a rate-and-term and a cash-out refinance?

A rate-and-term refinance pays off the existing balance and the closing costs, and nothing more. A cash-out refinance writes a larger loan than the one it replaces and returns the difference to the owner at closing.

Does taking cash out create a tax event?

The money is loan proceeds and not a sale, so it does not trigger the tax event that selling the asset would. How that applies to your particular situation is a question for your CPA — we are loan brokers, not tax advisors.

Can I refinance a property that is not fully leased?

You can apply, but it will be measured on what it earns today rather than on what the pro forma projects. A property still in lease-up generally sees lower leverage than a stabilized one.

Why go through a broker instead of my own bank?

The same property can be priced very differently depending on who underwrites it, and that gap is widest on refinances. We work the file across multiple lenders rather than against a single balance sheet.

Figures shown are current published parameters and are not an offer or commitment to lend. Availability, pricing, leverage and timelines vary by property, sponsor experience and market conditions.

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