$1.1M Cash-Out Refinance: Executive Office Suites in Lake Oswego

The Borrower's Problem

The owner had purchased the building with cash in 2019 and operated it as executive office suites. The property was only 50% occupied, and a legacy personal tax obligation was being resolved on an installment plan. Conventional lenders would not refinance a half-vacant building, yet the owner needed liquidity to buy another commercial property.

The Helvetica Solution

Helvetica structured a $1,100,000 cash-out refinance secured by a first mortgage on the unencumbered building. The 24-month interest-only term, extendable to 36 months, gave the owner time to lease up the vacant suites. A 12-month interest reserve was funded at closing, so payments were covered while occupancy recovered.

The property was appraised at $3,300,000 ($319.15/SF), putting the loan at a 33% loan-to-value ratio. At 50% occupancy, the property's income was sufficient to service the debt.

Benefit to the Borrower

• Unlocked $1,100,000 of equity from a debt-free building to fund the next acquisition.
• The 24-month term, with two 6-month extension options, provided a defined lease-up window.
• A 12-month interest reserve covered payments while the building was half vacant.
• Low 33% leverage kept the property well positioned for an institutional refinance.

Deal Highlights

• $1,100,000 cash-out refinance; first-mortgage security on an unencumbered asset
• 24-month interest-only term, extendable to 36 months; 33% LTV
• 10,340 SF class B office building, built in 1980, on a 35,719 SF site
• Operated as executive office suites; 50% occupied at the time of the transaction
• Appraised at $3,300,000 ($319.15/SF) at the time of the loan
• Planned exit: stabilize occupancy, then refinance with an institutional lender