Office Cash-Out Refinance | $1M Refinance with $250K Liquidity Extraction

The property was a long-held, well-managed historic office building with stable cash flow and low vacancy. The refinance and cash-out were straightforward in concept but required a capital partner who understood the asset type, the owner profile, and the purpose of the liquidity extraction. An unexpected financial event had depleted the ownership's reserves, creating an immediate need for cash that the property's equity could support without overleveraging the asset. The owner, active in his 80s with no succession plan, needed a financing structure that simplified the debt, provided the cash-out, and did not introduce complexity or refinance pressure into a property that had operated smoothly for four decades.

The historic, mansion-style character of the building, while an asset for tenant attraction and retention, required a lender who could underwrite a non-standard office property with architectural characteristics that do not conform to conventional suburban office templates. The 14-tenant roster of professional services firms provided diversified income, but the individual lease sizes were small, and the property's revenue was dependent on the continued occupancy of a stable but niche tenant base.

• Ownership needed $250,000 cash-out to restore liquidity following an unexpected financial event
• 40+ year ownership with no succession plan required a simple, stable debt structure
• Historic mansion-style office building required a lender comfortable with non-standard commercial property
• 14-tenant professional office roster with small individual lease sizes required diversified income underwriting

Cornovus Capital placed the $1,000,000 office cash-out refinance with a regional bank that understood the asset, the ownership profile, and the purpose of the cash-out. The 6.75% fixed rate locked in debt service certainty for the initial 5-year period. The 25-year amortization produced a monthly payment the property's rental income could comfortably cover. The 59% LTV provided the lender with strong collateral coverage on a $1,700,000 estimated value while delivering the full $250,000 cash-out the ownership required.

The credit package presented the property's 40-year operating history under the same ownership, the stable 14-tenant professional services roster, the consistent rental income, and the low-turnover occupancy profile. The historic character of the building was positioned as a competitive advantage in the local professional office market, attracting and retaining tenants who valued the architectural distinction and the location within a well-established commercial corridor.

• $1,000,000 conventional term loan at 6.75% fixed, 5-year rate lock, 10-year maturity, 25-year amortization
• $250,000 cash-out proceeds delivered at closing to restore ownership liquidity
• 59% LTV against $1,700,000 estimated value providing strong collateral coverage
• 40+ year ownership and operating history presented as credit foundation
• 14-tenant diversified professional services roster with consistent occupancy and low turnover

The $1,000,000 office cash-out refinance closed with the existing debt retired, $250,000 in cash-out proceeds delivered to the ownership, and a stabilized 25-year amortizing facility in place at a fixed rate of 6.75%. The property's debt structure was simplified from the prior obligation to a single long-term facility with predictable monthly payments sized to the building's rental income.

The transaction demonstrated how Cornovus Capital serves long-term property owners who need to access equity in a stabilized asset without disrupting the operating profile that has sustained the property for decades. The historic multi-tenant office building continued operating under the same self-managed ownership model with 14 professional tenants, consistent occupancy, and a debt structure designed for the long-term stability the owner required.

• $1,000,000 conventional refinance closed at 6.75% fixed with 25-year amortization
• $250,000 cash-out proceeds delivered at closing
• 59% LTV on $1,700,000 estimated value
• Historic multi-tenant office building with 14 professional tenants under stabilized long-term debt
• 40+ year self-managed ownership preserved with simplified debt structure

Additional financing outcomes are available in our Transaction Highlights archive.