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Updated over 3 years ago on . Most recent reply

If I want to refi a commercial property, plan to what cap rate?
This is a serious look into my first commercial property.
I'm running numbers for a commercial medical space for sale at .144 cap rate due to a full service lease being renewed annually. NOI is projected $72,140, asking price $499K.
Building is rented by a federal government organization since 2009.
How do I estimate the cap rate a lender would cash out this property at?
I would love to think that .10 cap would be the conservative answer but I don't know if that's true. A cap of .10 would give me pretty close to no money in the deal at a 75% LTV.
Also - If someone wants to cough up enough cash to buy it out right, I'd entertain a partnership conversation.
Most Popular Reply

- Rental Property Investor
- East Wenatchee, WA
- 16,119
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Sure. My commercial loans have all been 5/5/20. 5 year adjust, 5 yr call, 20 yr amort. Don't count on a 30 yr.