Sell or Refinance Commercial Property, Weighed by One Firm.
Sooner or later, most owners face the same question: sell or refinance commercial property they have held for years. A sale converts value into proceeds. A refinance keeps the asset and puts its equity to work. The right answer depends on the loan, the property, the market, and what you want next.
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Most advisors see only one side of that question. Mundial Capital advises on both investment sales and debt, so a sale and a refinance are modeled side by side, on the same assumptions, before you decide.
TWO PATHS, COMPARED
A sale converts the property's value into proceeds. It often fits an owner ready to exit, rebalance a portfolio, or move equity into a new purchase through a 1031 Exchange. We weigh pricing, the buyer pool, and timing.
A refinance keeps the property and releases equity or resets the loan. It often fits an owner planning a longer hold, with steady income and a property that lenders favor. We weigh proceeds, rate, structure, and terms.
[01]
Model Both Paths
We estimate what a sale would net after costs and what a refinance would deliver in proceeds and payments, using the same view of the property's income, value, and market. Both answers sit side by side before any decision is made.
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What we model: likely sale pricing and net proceeds, available loan proceeds at current leverage, prepayment costs on existing debt, and cash flow after a new loan.
[02]
Weigh Your Objectives
The numbers matter, and so does your plan. We review how long you intend to hold, whether you need equity now or later, and how much risk you want to keep.
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Tax considerations, including a possible 1031 Exchange, are confirmed with your own tax advisor before you commit to either path.
[03]
Carry Out the Decision
Whichever path you choose, the same firm carries it through. A sale moves into our investment sales process, from pricing and marketing through contract and closing.
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A refinance moves into our debt process, from lender selection through term sheet and closing, so nothing is lost in a handoff between advisors.
QUESTIONS THAT DECIDE IT
What Tips the Balance.
Your Hold Period
How long you plan to own the property shapes the answer. A short horizon often favors a sale; a longer hold can favor a refinance.
Tax Considerations
A sale can trigger taxes that a refinance does not, and a 1031 Exchange may defer them. Confirm the details with your tax advisor.
Your Equity Needs
Whether you need cash now, later, or not at all matters. A refinance can release equity while you keep the income the asset earns.
The Property's Next Chapter
Rising capital needs, expiring leases, or a changing market can tip the balance. We weigh what the coming years will likely bring.