Refi a mixed use at 8.75%?

[Sol Romand]

I've got a mixed use property in south NJ, it's 75% office space and 25% residential. The residential is occupied and the commercial is vacant. I'm looking to refi and take out about 220k which is 50% of appraised value. I've been trying to get a loan, the only offer I got was for 8.75% with 1.5 bp. Is this the norm? And does it make sense at all to refi at that rate or just sit and wait until I have a tenant.

Current rent- $31,200 annual

Potential additional rent $60,000

Taxes and insurance- $15,500