Lake City, FL – Dixon Link Capital secured a $1,054,091 cash-out refinance for a recently renovated industrial retail property in Downtown Lake City. Loan proceeds were used to refinance the existing seller note and cash out a portion of the borrower’s equity to put towards their growing real estate portfolio.
Faith Link, Managing Partner, worked on behalf of the borrower, a seasoned Jacksonville-based real estate investor, to secure the loan. The borrower initially purchased the 13,000-square-foot Lake City property in early 2025. They invested over $200,000 in renovations and achieved 100% occupancy prior to loan closing – all within a year of owning the property.
Transaction Highlights
A Straightforward Refinance – Right?
Even with a seasoned borrower, a prime location, and a freshly renovated property, securing the right lending partner for the project did not come without its challenges.
Many lenders have strict guidelines on refinances involving borrower cash-out. Oftentimes, lenders require at least 12-24 months of property ownership before allowing a cash-out refinance or considering the property’s new, improved market value. Additionally, some lenders require a property to demonstrate stabilized cash flow for a certain time period before moving forward on a loan. It comes down to the lender seeking to (understandably) manage and mitigate their potential risk exposure.
For a seasoned real estate investor whose business model is built on efficient, high-quality value-add renovations and swift property lease-up, achieving these milestones so quickly can become an underwriting obstacle.
The Solution: Ensuring Borrower-Lender Alignment
With a strong understanding of each lender’s unique credit appetite around these key factors, Ms. Link efficiently sourced multiple loan options for the borrower that aligned with their transaction goals.
By creating a loan package that guaranteed a strong first impression with lenders, providing lenders with clear, accurate information on the project and its potential challenges from the start, and fostering prompt communication throughout the process, Ms. Link equipped lenders with the necessary tools to bring their most competitive loan terms to the table. From these options, the borrower chose to move forward with a strong, relationship-oriented regional bank partner.
The lender chosen was able to maximize loan proceeds at a competitive fixed rate, allowed the borrower to take cash-out proceeds now vs. later, and required a low, flexible deposit relationship. All of these factors supported the borrower’s ability to take on additional projects and continue growing their income-producing real estate portfolio, which includes industrial, retail, office, and more.
For CRE Refinances, Dixon Link Capital’s Borrowers Cash In
Alignment between a lender’s credit box and a borrower’s transaction goals is key – with the latter being a consistently moving target. Whether it’s a refinance, development project, or property/business acquisition, Dixon Link Capital efficiently secures capital for borrowers through its strong lending relationships and deep understanding of each lender’s ever-evolving credit appetite.
Dixon Link Capital has the expertise, resources, and relationships to source creative, competitive financing solutions for commercial real estate developers, business owners, and investors throughout the Southeast. Click here to submit your loan scenario.
Dixon Link Capital is a commercial mortgage broker and capital advisory firm based in Jacksonville, Florida, specializing in commercial real estate.
