How We Closed a $12 Million Industrial Building Refinance in Just 19 Days
Commercial mortgage broker Financial Compound takes pride in our ability to execute even the most complex commercial real estate transactions on tight deadlines. Recently, we were approached by a client needing to refinance their industrial mixed-use property. The challenge? Closing a $12 million loan in just 19 business days—despite significant hurdles.
Time Deadline for Industrial Building Refi
Our client needed an industrial building refinance for a newer-construction, industrial mixed-use asset, partially occupied by their own business. The borrower faced a rapidly approaching closing deadline for its Industrial Building Refinance. Further complicating the deal, the existing lender had recently filed a foreclosure action, putting additional pressure on the borrower. The stakes were high. Failing to close in time could have meant severe financial and operational consequences for the borrower’s business. Our role as the commercial mortgage broker was clear: deliver the proceeds and interest rate the client required, on schedule, and structure a solution despite challenging circumstances.
Industrial Building Refinance, overcoming obstacles
One of the initial challenges involved substantiating the property’s rental income. This property was commanding top-of-market rents—a crucial factor in supporting the desired loan amount. However, part of the building was leased by the borrower’s own company, requiring additional diligence and analysis to demonstrate to lenders that these rents were sustainable and reflective of market conditions.
Our team conducted extensive market research and compiled detailed rent comparables for similar properties in the area. We documented trends, vacancy rates, and lease terms, and gathered evidence to show that the in-place rents, including those paid by the owner’s business, were justifiable.
At the same time, we worked closely with the existing lender, who had recently initiated foreclosure proceedings. Maintaining open communication with all parties was critical to keep the deal on track and ensure a smooth payoff as part of the refinance. By keeping negotiations constructive and transparent, we prevented unnecessary delays and kept the process moving forward.
Creative Financing Structures
Rather than take a one-size-fits-all approach, Financial Compound brought multiple financing options to the table. We leveraged our network of portfolio lenders and private capital sources to create competition, ultimately identifying a closely held portfolio lender willing to accommodate the borrower’s aggressive timeline and preferred terms.
Through negotiation and structuring, we were able to offer the client a loan with the following features:
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Industrial Building Refinance Loan-to-Value (LTV): 80%
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Amortization: 25 years
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Lender Fee: 1%
These terms aligned with the client’s objectives, providing ample proceeds at a favorable fixed rate, all while keeping lender fees competitive.
The Outcome: Industrial Building Refinance 19-Day Close
From initial engagement to closing, the entire refinance was completed in just 32 days. This was made possible through rigorous preparation, constant communication, and a solution-oriented approach at every step. By substantiating the rental income, facilitating cooperation among all stakeholders, and structuring a loan tailored to the borrower’s needs, Financial Compound delivered a result that exceeded expectations.
Why Choose Financial Compound?
Every commercial real estate deal has its own unique obstacles. At Commercial Mortgage Broker Financial Compound, we combine deep market expertise with a hands-on, responsive approach to deliver results—even under tight deadlines and in complicated situations. Whether you are seeking to refinance, acquire, or reposition commercial property, our team stands ready to help you achieve your financial goals.
If you are facing a challenging closing deadline or simply want to explore your financing options, contact Financial Compound today to discuss how we can help. This commercial mortgage broker will snag qualified lenders in a single bound. Don’t delay.