Options for Financing and Refinancing Your Commercial Property
Marcus & Millichap Capital Corporation (MMCC) is a leading source of real estate capital nationally. In 2015, our firm sourced and closed more than $4.9 billion in commercial debt and equity structures through 1,601 capital markets transactions across the U.S.
Our team of experienced professionals provides financing and refinancing options for a full range of commercial property types, including: apartments, shopping centers, office, industrial, single-tenant net-lease, seniors housing, hotels/motels, manufactured home communities and self-storage.
What are the Advantages of Using an MMCC Financing Advisor?
Unlike going to a single institution, our financing advisors will work with you to understand your specific financial situation and your short- and long-term goals regarding the property. We then review the available lending options with you to find the one that best meets your investment criteria.
Because of our preferred lender relationships (from large private equity funds to local community banks), we can often secure better rates, terms, and negotiate loan covenants and bank fees, resulting in an internal rate of return for our clients that is on average 28% higher than if they secured financing on their own.
Should I Refinance or Sell My Property?
If you have a property that has accrued a significant amount of equity, there are two main ways to take that equity out of your project: selling or refinancing.
Reasons to Sell Your Commercial Property:
- You are managing the property yourself and would like to decrease your work load
- You own one or more smaller properties and would like to trade up for a larger property
- The property is owned by a partnership that you would no longer like to be a part of
- You would like to own a different property type
- You inherited the property and would like to cash out
- You are moving to a different location
- Your investment strategy is to buy value-add properties and sell them upon stabilization
- You would like to capitalize on the current high market prices
Reasons to Refinance Your Commercial Property:
- You want to keep your property, but would also like some cash to acquire additional properties
- The property has a good, stable cash flow so you want to keep it, but need additional money for personal reasons
- You have a balloon payment coming due
- You would like to lower your current rate
- You would like to reduce your monthly debt service payments to improve your cash flow
- You want to get out of a recourse loan and secure a loan with no personal guarantees
- You want to get into a longer term loan in order to take advantage of historically low interest rates