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What CRE Owners Should Know About Refinancing

Property owners are always looking for ways to get the most out of their investments. One of the best ways for owners of commercial real estate to maximize the value of their situation is to REFINANCE their loan at the right time. A refinance offers owners a few advantages, including restructuring their debt payment schedules or recapturing some of the equity they’ve built in their properties through a cash-out refi.

There are many important factors that impact your decision to refinance your property. If you’re considering refinancing, remember, timing is everything!

REASONS TO REFINANCE

  • Cash-Out Refinance
  • Switch to Fixed Rate
  • Avoid a Balloon Payment (upcoming maturity)
  • Take Advantage of Lower Rates

ELIGIBLE PROPERTIES

  • Office
  • Retail
  • Warehouse
  • Light Industrial
  • Mixed-Use
  • Multifamily
  • Medical Facility
  • Self-Storage

LOAN OPTIONS

  • Traditional Bank
  • CMBS
  • HUD/FHA or Fannie Mae and Freddie Mac (multifamily)
  • SBA 504 Loans (owner-occupied)

TIPS FOR A SUCCESSFUL REFINANCE

  • Timing is everything – If you have a balloon payment coming up, be sure to start the process far enough in advance. If you want to switch from a variable-rate loan to a fixed-rate loan, you should refinance before rates rise.
  • Understand your needs and limits – Setting a range of monthly payments and interest rates will help you meet your goals and financial capabilities. If you need to refinance with cash-back, you should tally up exactly how much is needed to serve your purpose.
  • Be a smart borrower – Different lenders offer different loan programs and terms, so shopping around is a good idea.  Working with a commercial mortgage broker is an even better idea, as their relationships enable them to negotiate better rates and terms on your behalf.

If you are a CRE owner or investor and need a commercial loan to purchase real estate or to refinance your existing loan, Progress Capital can help you through the process. 

Progress Capital is a commercial real estate mortgage advisory firm that offers a wide selection of loan financing solutions to assist commercial real estate owners and developers in meeting their individual needs and financing objectives. Since 1990, Progress Capital has closed more than $40 billion in loans and $150 million in directly funded bridge loans. 

Will McKenna, Managing Director – Will’s experience and knowledge of the full capital stack combined with his technical and analytical background allows him to advise clients and suggest the best financing structure, which often includes a first mortgage, mezzanine debt and JV equity. Connect with Will to discuss your CRE financing needs.  PH: 201.341.3096, will@progresscapital.com


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