Take property out of LLC for refinance?

[Ed M.]

I have a single rental property in my sole proprietorship LLC.
I want to refinance, but was told by the lender I need to take the property out of the LLC to do so.
What is the benefit of having the property in the LLC to begin with?
Since I already have an LLC and bank account for the LLC for rent, what's the purpose of having the property in the LLC as well?
Should I just leave the property out of the LLC after the refi? I can transfer it back if it makes sense.

It seems to me, if someone sued the LLC for damages, they would be limited to the LLC's holdings, which would no longer be the property since it would be in my name, not the LLC. The only holdings of the LLC would be the bank account.

Thanks for any tips.