Need Some Help Refinancing Commercial Property

[Ruben Goodbear Anders]

Hello!

I have a building in Milwaukee that I am having trouble refinancing. It is an old industrial/warehouse building, that I have converted into private office spaces for tenants. There are 20 units in the building. It is bringing in 13k a month. My loan amount, as of now is 345 ish.

Due to various issues, the location being the primary one I assume (C/D class), I am having trouble getting a traditional bank on board here. Despite the income, my highest appraisal so far has been 404k. I disagree with that assessment, but it is what it is. 

I'm looking for some creative strategies here to get out of this loan. My current situation is a 5 point refinance fee every 3 months (next one is march)  This was initially a 303k loan. Now I may be able to waive some of these refinance fees, or pay them on a separate invoice after closing on this refinance, as I have a good relationship with the owner of the hard money company.

I personally feel like private money would be my best bet here. Just somebody looking to get X amount of interest on their money sitting in the bank. I mean honestly, name your rate. Let's see if it makes sense!

Just looking for some help here where I can get it. I am really running out of options on the traditional side of things. I spent so much time getting this building leased out and to this point I would really hate to sell. I am listing it next week just to see if anybody bites, but really would like to hold this as the cash flow is very good.

Thank you in advance. :)

[Pierre Guirguis]

The income is strong, but you’re running into an asset + location problem, not a cash flow problem. Old industrial converted to office in a C/D pocket is going to scare most banks no matter how clean the rent roll looks.

A few thoughts that might help you think through next moves:

- The appraisal ceiling matters more than the income right now. If $400–$425k is where appraisers keep landing, traditional refi options are going to stay constrained regardless of NOI. Fighting the appraisal rarely changes the outcome unless the property type or use is reframed.

- Private money is a reasonable bridge, but only if it actually solves the problem. If you’re just swapping one expensive, short-term note for another without a clear takeout path, you’re buying time, not certainty. Make sure the rate + term gives you breathing room, not just relief from the refi fee cycle.

- You may want to explore whether this underwrites better as a specialty-use / flex / service-office asset rather than “office” in the lender’s eyes. Sometimes changing how the story is told changes which lenders will even look at it.

- Another angle is a partial paydown + extension with your current lender if the relationship is good. Even imperfect terms can be better than restarting the clock every few months.

- Listing it quietly while you explore financing isn’t a bad move. It gives you a real market signal without forcing a sale if the number doesn’t make sense.

The key question I’d keep asking is: what makes this a better asset in 12–24 months than it is today from a lender’s perspective? Whatever that answer is should drive the structure you choose now.