Loan Product

Commercial Real Estate Refinance | Cash-Out & Rate-and-Term

Rate-and-term and cash-out refinancing for stabilized and transitional commercial assets — including maturing CMBS, bank, and bridge debt — placed nationwide.

Loan Size

$4M – $500M

Cash-Out LTV

Up to 75%

Rate-and-Term LTV

Up to 80%

Minimum DSCR

1.25x typical

Term

5 – 30 years

Close Time

30 – 60 days

A commercial refinance replaces existing debt with a new loan, either to extend a maturing obligation at current market terms (rate-and-term) or to pull accumulated equity out of the asset (cash-out). Rad Capital Group refinances commercial properties from $4 million to $500 million across all 50 states.

Cash-out refinances are typically capped at 65% to 75% loan-to-value depending on asset type and lender, with a minimum debt service coverage ratio of 1.25x on stabilized cash flow. Rate-and-term refinances can reach 75% to 80% LTV on agency multifamily and SBA-eligible owner-operated assets.

The largest refinance driver in the current market is maturity. Loans originated in the low-rate years are maturing into higher coupons and lower proceeds. We solve those gaps with a combination of senior debt, mezzanine, preferred equity, and — where the existing lender is motivated — negotiated modifications or discounted payoffs.

Prepayment structure matters as much as rate. We model defeasance and yield-maintenance costs on the existing loan before recommending a refinance, so the analysis compares net proceeds after exit costs rather than headline coupons.

Frequently Asked Questions

How much cash can I take out in a commercial refinance?

Cash-out refinances are generally limited to 65% to 75% loan-to-value with a 1.25x minimum debt service coverage ratio. On a property appraised at $20 million with no other debt, that implies $13 million to $15 million in proceeds, subject to cash flow coverage.

Can I refinance a commercial loan that is maturing or already in default?

Yes. Maturity defaults and near-term maturities are refinanced regularly through bridge lenders and debt funds, often in 2 to 4 weeks. Assets already in payment default may require a workout or discounted payoff alongside the new loan.

What does it cost to prepay an existing CMBS loan?

CMBS loans typically require defeasance or yield maintenance. Defeasance cost depends on the spread between the loan coupon and current Treasury yields and can range from under 1% to more than 10% of the balance. We model the exact cost before recommending a refinance.

How long does a commercial refinance take?

Bank and agency refinances usually close in 45 to 60 days. Bridge and debt fund refinances close in 2 to 4 weeks when third-party reports are current.

Do I need a new appraisal to refinance?

Yes. Nearly all commercial lenders require a new appraisal, environmental report, and property condition assessment ordered through their approved vendor list.

Ready to explore commercial refinance?

Initial term sheets in as little as 2 weeks. Nationwide.

Submit a Loan Request

$12M Self-StorageLas Vegas, NV

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