Refinancing

Five Reasons to Refinance Commercial Real Estate

1. Lower the rate. When current market rates are below the existing loan rate, refinancing reduces debt service and grows cash flow.
2. Cash-out. When the property has appreciated or NOI has grown, a refinance can pull out tax-free equity (loan proceeds are not taxable) for redeployment.
3. Reset the term. Ahead of loan maturity, a new long-term loan removes near-term refinance risk and locks in capital.
4. Change recourse or structure. Move from recourse bank debt to non-recourse CMBS or agency. Replace floating-rate with fixed-rate.
5. Remove prepayment constraints. Refinance out of yield maintenance or defeasance to enable a sale or strategic disposition.

Florida Refinance Programs

• Agency Multifamily (Fannie/Freddie) — Dominant for stabilized Florida apartments; 70–75% LTV, 30-yr amort, non-recourse
• HUD 223(f) — Lowest rates + 35-yr fully amortizing; longest process (6–9 months)
• HUD 223(a)(7) — Streamlined refinance of existing HUD loans; 60–90 day close
• CMBS — Dominant for stabilized hotel, retail, office, industrial $5M+; 10-yr fixed, non-recourse
• Life Company — Strongest pricing for trophy assets; lower leverage (55–65%) with longer terms
• Bank Balance Sheet — Best for relationship borrowers; typically 5–10 yr terms with recourse
• Bridge Loans — For value-add and lease-up properties not yet qualifying for permanent debt

Florida-Specific Refinance Considerations

• Insurance underwriting — Florida insurance crisis has made adequate hurricane coverage a critical lender requirement
• Documentary stamp tax + intangible tax — Florida charges $0.35 per $100 of new mortgage doc stamps and $0.20 per $100 intangible tax on new mortgages; refinances can trigger these on the new loan amount
• Yield maintenance / defeasance cost — CMBS, agency, and life company loans typically carry yield maintenance or defeasance. In rising-rate environments these are cheaper; in falling-rate environments they can be substantial
• Property tax reassessment — Refinances do not trigger reassessment, but lenders will model post-acquisition tax levels if a sale is expected at refi maturity

When to Refinance — and When to Wait

Time refinances strategically: ahead of loan maturity (so you aren't a forced refi at unfavorable terms), during periods when current rates are favorable vs. your existing rate, after NOI growth that supports higher leverage, or when you want to lock in long-term debt ahead of a perceived rate increase. Avoid refinancing during periods of unfavorable yield maintenance / defeasance economics unless you have a deal-specific reason (sale required, recourse removal, structural changes).

What is commercial real estate refinancing?

CRE refinancing replaces existing mortgage debt on a commercial property with new debt — typically to reduce the interest rate, extend the term, pull cash out, change recourse provisions, or remove prepayment constraints like yield maintenance or defeasance.

How much cash can I pull out of a Florida commercial property refinance?

Maximum cash-out depends on the new loan's LTV, DSCR, and debt yield requirements applied to the property's current NOI. Agency multifamily typically allows 70–75% LTV with 1.25x minimum DSCR. CMBS typically 70–75% LTV. HUD 223(f) up to 85% LTV. The math: maximum new loan size − existing payoff − closing costs = cash-out proceeds.

Are commercial real estate loan refinance proceeds taxable?

Loan proceeds — including cash-out from a refinance — are not taxable income. The basis in the property does not change. Tax is deferred until eventual sale (where 1031 exchange can defer further) or step-up at death.

What is the difference between rate-and-term refinance and cash-out refinance?

Rate-and-term refinance replaces the existing loan at the same loan amount with new rate and/or new term, with no cash to the borrower. Cash-out refinance increases the loan amount beyond the existing payoff and returns the difference as cash to the borrower.

Who can help me refinance a Florida commercial real estate property?

Michael R. Linton at Linton Global Solutions has 39 years of Florida commercial real estate refinance experience across agency, CMBS, HUD, life company, bank, and bridge programs. We shop every refi across our 500+ lender network to optimize rate, leverage, and terms. Call (312) 612-1031.

Article Summary

Commercial real estate refinancing replaces existing mortgage debt with new debt — typically to lower the rate, extend the term, pull tax-free cash-out for redeployment, change recourse, or remove yield maintenance / defeasance constraints. Florida CRE owners face unique considerations around insurance underwriting, documentary stamp and intangible tax on new mortgages, and the depth of available programs across agency, CMBS, HUD, life company, and bank balance-sheet lending. Michael R. Linton at Linton Global Solutions has 39 years of Florida refinance experience across all program types.

Key Takeaways

• ✓CRE refinancing replaces existing debt with new debt — usually for rate, term, cash-out, or structural reasons.
• ✓Florida programs: Agency Multifamily, HUD 223(f) / 223(a)(7), CMBS, Life Company, Bank, Bridge.
• ✓Loan proceeds — including cash-out — are not taxable income. Basis does not change.
• ✓Florida documentary stamp tax ($0.35/$100) and intangible tax ($0.20/$100) apply to new mortgages.
• ✓Yield maintenance / defeasance cost varies with the spread between loan rate and current Treasury yields.
• ✓Time refinances ahead of maturity to avoid forced refi at unfavorable terms.
• ✓Florida insurance underwriting is now a critical lender approval factor.
• ✓Michael R. Linton (FL Broker BK703722) brings 39 years of Florida CRE refinance experience.

About Michael R. Linton

Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39+ years of experience closing commercial transactions, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.

Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving 500+ banks.

Ready to Talk About Your Refinancing Deal?

Get a free consultation with Michael R. Linton — 39 years of Central Florida CRE experience. Zero pressure.

Works Cited

1. Fannie Mae. "Multifamily Financing Programs." Fannie Mae, https://multifamily.fanniemae.com/. Accessed Jun 7, 2026.
2. Freddie Mac. "Multifamily Lending Programs." Freddie Mac, https://mf.freddiemac.com/. Accessed Jun 7, 2026.
3. U.S. Department of Housing and Urban Development. "HUD Multifamily Housing Programs." HUD, https://www.hud.gov/program_offices/housing/mfh. Accessed Jun 7, 2026.
4. Mortgage Bankers Association. "Commercial & Multifamily Lending Research." MBA, https://www.mba.org/. Accessed Jun 7, 2026.
5. Internal Revenue Service. "Real Estate Tax Information." IRS, https://www.irs.gov/businesses/small-businesses-self-employed/real-estate-tax-center. Accessed Jun 7, 2026.

Disclosure & Compliance

Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.

Compliance Statement: All CREDDS and REOMind.ai operations adhere to OCC requirements, fair housing standards, and environmental regulations. Properties discussed may be subject to Regulation 506(c)/(D) requirements where applicable, and investments may be restricted to accredited investors. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.