Anyone complete any commercial refinance deals lately?

[Adam Craig]

Anyone complete any commercial refinance deals lately?

I have a 6 unit office building that I purchased in October 2019. It was rehabbed and fully leased by May 2020. Of course by this time Covid was here so my refinance plan hit a wall. 

Purchase price 275 - Rehab 65K - Bringing in 5100/month before building expenses with annual NOI about 45K.

I shopped refinancing on my own and with a commercial broker but didn't have much luck getting it financed above the original purchase price of 275K. I am trying to get closer to 320K so I can pull most of my rehab investment back out. Banks seem VERY cautious of commercial, specifically office space for obvious reasons.

At this point I am thinking of waiting until 2021 because my tax returns will be stronger and the building will have better seasoning.

Interested to hear about what other commercial investors are experiencing? 

[Matt Clark]

@Adam Craig in my market local banks and credit unions are currently lending with attractive rates on that exact product. Each lender has its unique criteria and not all will lend on it but some will. You just have to check around to find which ones have the most appetite for that deal type. And yes, all of them will require you to have accounts at their institution, but it doesn’t mean you have to move all of your business banking there.