CRE Refinance
Know Your Number Eighteen Months Early.
A historic wave of commercial debt matures in this window. Owners who find their refinance gap early keep every option open.
The gap, explained
Lenders size loans by an LTV ceiling and a DSCR floor. The smaller answer wins — and in a higher-rate environment the smaller answer is usually well below the current payoff.
| NOI | $700,000 |
| Value at 6.75% cap | ≈ $10.37M |
| Current payoff | $8.0M |
| Max at 65% LTV | ≈ $6.74M |
| Max at 1.25× DSCR | ≈ $7.19M |
| Max proceeds | ≈ $6.74M |
| Refinance gap | ≈ $1.26M |
Illustrative
Refi Gap Calculator
Lenders size by an LTV ceiling and a DSCR floor. The smaller answer wins.
Illustrative estimates only — not a quote, rate offer, or commitment. Actual terms depend on lender underwriting.
Six numbers to know
- 1Trailing-12 NOI (with normalized expenses).
- 2Current payoff, including any exit or prepayment fees.
- 3Current rate and maturity date.
- 4Prepayment status — open, defeasance, yield maintenance.
- 5Honest current value (broker opinion or recent cap).
- 6Loan and lender type — bank, agency, CMBS, life co, debt fund.
Lender map
| Lender type | When it fits |
|---|---|
| Banks & credit unions | Relationship deals, deposits, mid-size loans. |
| Agency (Fannie/Freddie) | Stabilized multifamily, longer terms, best pricing. |
| SBA (7a / 504) | Owner-occupied CRE with an operating business. |
| Life companies | Institutional-quality assets, low leverage, long fixed rates. |
| Debt funds | Transitional assets, higher leverage, floating rates. |
| CMBS | Larger stabilized assets, non-recourse, no prepay flexibility. |
18-month timeline
Frequently asked
What do you need from me?
Three numbers to start: NOI, current payoff, and current rate.
What if there's a gap?
Five paths: cash-in refinance, structured capital (mezz/pref), bridge-then-perm, an armed renewal negotiation, or a planned sale.
What does it cost?
Our fee is typically 1% of the funded loan, paid at closing from proceeds. In writing before we contact a single lender.
My bank says they'll renew — why bother?
Extensions run shorter and pricier. A real market alternative sharpens any renewal.
The Property Owner's Guide to the 2026 Refinance Gap
A 24-page working guide: how lenders size loans today, the five paths to close a gap, and the 18-month timeline to run.