Commercial property owners in Henderson are entering one of the most favorable refinance environments in years. With permanent loan rates declining from their 2023 peaks and Henderson property values continuing to appreciate on the strength of population growth, rent increases, and strong absorption, the combination creates a compelling opportunity to lower debt service, extract equity, or restructure loan terms for improved cash flow.
Whether you purchased a Henderson apartment building with a bridge loan that needs permanent take-out, own a retail center with a maturing balloon payment, or hold an industrial property that has appreciated significantly and want to extract equity for new investments, the Henderson commercial refinance market offers programs designed for each scenario. This guide covers every refinance option available for Henderson commercial properties, from agency multifamily programs to DSCR refinances that require no personal income documentation.
Need Financing for This Project?
Stop searching bank by bank. Get matched with 6,000+ vetted lenders competing for your deal.
What Types of Commercial Refinance Loans Are Available in Henderson?
Henderson commercial property owners can access the full spectrum of refinance programs, with the optimal choice depending on the property type, current occupancy, desired proceeds, and the borrower's documentation preferences.
Agency refinance loans through Fannie Mae and Freddie Mac offer the lowest available rates for stabilized Henderson multifamily properties. Rates of 5.25% to 6.25% with up to 80% LTV for rate-and-term refinances and 75% LTV for cash-out refinances make agency programs the gold standard for apartment property refinancing. Non-recourse structures, terms of 5 to 30 years, and 30-year amortization provide the most borrower-friendly terms in the market. The requirement is stabilized occupancy of 90% or above for at least 90 days prior to closing.
Conventional commercial refinances from banks and life insurance companies serve all Henderson commercial property types, including retail, office, industrial, and mixed-use. Rates of 5.75% to 7.25% with 75% LTV and terms of 5 to 10 years provide competitive permanent financing for stabilized properties. Visit our permanent loan programs for details on conventional refinance options.
CMBS and conduit refinances offer non-recourse financing for larger Henderson commercial properties at rates of 6.00% to 7.50% with 70% to 75% LTV. These programs work well for investors who want to eliminate personal liability on their Henderson property debt while locking in competitive fixed rates.
SBA 504 refinance loans allow Henderson business owners to refinance existing commercial mortgages on owner-occupied properties into the SBA 504 program's favorable terms. With up to 90% LTV, a below-market fixed rate on the SBA portion for 20 to 25 years, and eligibility for cash-out to cover eligible business expenses, SBA 504 refinancing provides owner-occupants with the most advantageous long-term debt structure.
DSCR refinance loans qualify Henderson property owners based on the property's income rather than personal income documentation. Rates of 7.00% to 9.00% with up to 75% LTV and 30-year terms provide long-term fixed-rate financing without tax returns or income verification. DSCR refinances are particularly valuable for Henderson investors with multiple properties or complex tax situations. Use our DSCR calculator to evaluate your property.
Bridge refinances at 8.50% to 11.00% serve Henderson properties in transition that need to replace a maturing loan but do not yet qualify for permanent financing. These short-term refinances provide 12 to 36 months of additional time to complete renovations, lease-up, or other stabilization activities before transitioning to permanent debt.
When Does It Make Sense to Refinance a Henderson Commercial Property?
The decision to refinance a Henderson commercial property involves analyzing several financial factors to determine whether the benefits outweigh the costs.
Rate reduction opportunity is the primary refinance driver. If your current Henderson commercial property loan carries a rate that is 100 or more basis points above today's market rates, refinancing can generate significant monthly savings. On a $3 million Henderson apartment loan, reducing the rate from 7.50% to 5.75% saves approximately $4,375 per month in debt service, or $52,500 annually. This savings compounds over the loan term and directly improves the property's cash-on-cash return.
Loan maturity management is a critical refinance trigger. Henderson commercial property loans with balloon payments approaching maturity within the next 12 to 24 months need refinance planning now. Waiting until the last 60 to 90 days before maturity creates urgency that limits negotiating leverage and may force the borrower into less favorable terms. Proactive refinance planning six to twelve months before maturity ensures access to the best available programs and rates.
Bridge-to-permanent transition represents the most common refinance transaction in Henderson. Property owners who acquired value-add properties with bridge loans at 8.5% to 11.5% and have since completed renovations and achieved stabilized occupancy are positioned to refinance into permanent financing at rates that are 300 to 500 basis points lower. This transition is the planned exit strategy for every bridge loan and should be initiated as soon as stabilization milestones are met.
Equity extraction through cash-out refinancing allows Henderson property owners to access the appreciation their properties have gained. With Henderson commercial property values increasing approximately 8% to 15% over the past three years across most property types, owners who purchased three or more years ago may have significant equity available for extraction. Cash-out proceeds can fund new Henderson property acquisitions, capital improvements, portfolio diversification, or debt retirement on other properties.
Term restructuring addresses situations where the existing loan terms no longer match the investor's strategy. Converting from a variable rate to a fixed rate, extending the amortization period to reduce monthly payments, or switching from recourse to non-recourse debt through a CMBS refinance are all valid refinance motivations independent of rate considerations.
How Much Can Henderson Property Owners Save by Refinancing?
The potential savings from refinancing a Henderson commercial property depend on the rate differential, loan balance, and remaining term. The current rate environment creates meaningful savings opportunities for properties financed during the 2022 to 2023 rate peak.
Consider a Henderson apartment building owner who financed a $5 million acquisition with a bridge loan at 10.0% interest-only. Monthly interest payments total $41,667. After completing renovations and stabilizing occupancy at 94%, the owner refinances into an agency loan at 5.50% with a 30-year amortization. The new monthly payment of approximately $28,389 (principal and interest) represents savings of $13,278 per month, or approximately $159,333 annually. Over a 10-year hold period, the cumulative savings exceed $1.5 million while the owner also builds equity through principal amortization.
A Henderson retail center owner with a $2 million conventional loan at 7.50% paying approximately $14,583 per month (interest-only) can refinance into a new conventional loan at 6.00% with a 25-year amortization. The new payment of approximately $12,876 saves $1,707 per month while also beginning to pay down principal.
An industrial property owner in West Henderson with a $3 million bank loan at 8.00% originated in 2023 can refinance into a conventional loan at 6.25% when the rate lock or adjustment period allows. Monthly savings of approximately $4,375 on interest plus the shift from a five-year balloon to a longer-term structure improves both cash flow and risk management.
How Does Cash-Out Refinancing Work for Henderson Properties?
Cash-out refinancing allows Henderson commercial property owners to extract equity from appreciated properties without selling, providing capital for new investments, improvements, or other financial objectives.
The mechanics are straightforward. The new loan amount exceeds the existing mortgage balance, and the difference between the new loan and the payoff of the existing loan is distributed to the borrower as cash. Most Henderson cash-out refinance programs allow maximum LTV of 70% to 75%, compared to 75% to 80% for rate-and-term refinances.
Consider a Henderson apartment building purchased for $3.5 million three years ago with a $2.6 million mortgage. The property now appraises at $4.2 million due to Henderson's appreciation and the owner's rent increases. A cash-out refinance at 75% LTV provides a new loan of $3.15 million. After paying off the existing $2.45 million balance (reduced from $2.6 million through amortization), the owner receives approximately $700,000 in cash proceeds.
The $700,000 in extracted equity can be deployed into a new Henderson property acquisition, funding the down payment on a $2.8 million property at 25% down. This capital recycling strategy allows Henderson investors to grow their portfolios using the equity created through property appreciation and debt paydown, without selling properties or contributing additional personal capital.
Seasoning requirements apply to most cash-out refinance programs. Lenders typically require the property to have been owned for 6 to 12 months before allowing cash-out refinancing. This prevents rapid-cycle transactions where properties are purchased, immediately refinanced at inflated values, and the cash proceeds extracted. Henderson properties that have been held for 12 or more months face the fewest restrictions on cash-out proceeds.
What Prepayment Considerations Affect Henderson Refinance Decisions?
Prepayment penalties on existing Henderson commercial loans can significantly impact the financial analysis of refinancing and must be factored into the decision.
Yield maintenance is the most restrictive prepayment structure, common in CMBS and agency loans. Yield maintenance requires the borrower to compensate the lender for the present value of the interest rate differential between the existing loan rate and current treasury yields over the remaining loan term. In a declining rate environment, yield maintenance penalties can be substantial, sometimes exceeding 5% to 10% of the loan balance. However, when current rates are above the existing loan rate (an unusual situation), yield maintenance can produce low or even zero prepayment penalties.
Step-down prepayment penalties, common in bank and debt fund loans, decline on a predetermined schedule. A typical structure might be 5% in year one, 4% in year two, 3% in year three, 2% in year four, and 1% in year five. Henderson property owners with step-down penalties should time their refinance to coincide with a penalty reduction that makes the transaction economically viable.
Defeasance, used in some CMBS loans, requires the borrower to purchase a portfolio of government securities that replicate the remaining cash flows of the existing loan. The cost depends on the interest rate environment and remaining loan term. Defeasance is complex and expensive but allows the borrower to release the property from the existing lien.
Open periods in commercial loans allow prepayment without penalty during specific windows, typically the last 90 to 180 days of the loan term. Henderson property owners approaching their open period can refinance without prepayment cost.
The break-even analysis compares the total prepayment penalty cost against the present value of the interest savings from refinancing. If a Henderson property owner faces a $75,000 prepayment penalty but will save $4,000 per month by refinancing, the break-even period is approximately 19 months. If the remaining planned hold period exceeds the break-even period, the refinance makes financial sense despite the penalty.
How Does Henderson Property Appreciation Support Refinancing?
Henderson's strong market fundamentals have driven property appreciation across all commercial property types, creating refinance opportunities that did not exist when properties were originally financed.
Multifamily property values in Henderson have increased approximately 10% to 15% over the past three years, driven by rent growth of 3% to 5% annually, declining vacancy, and strong investor demand for Henderson apartment assets. A property valued at $4.0 million at purchase may now appraise at $4.4 million to $4.6 million, providing additional equity for cash-out refinancing or improved LTV positioning for rate-and-term refinancing.
Industrial property values in the West Henderson corridor have appreciated strongly, driven by the explosion of logistics and manufacturing demand. Properties purchased before the corridor's major development phase may have seen value increases of 15% to 25%. The rent growth from $0.85 per square foot to $1.05 or more per square foot directly increases NOI and property value.
Retail property values in Henderson have been more selective, with grocery-anchored and well-tenanted centers appreciating while properties with vacancy or weak tenant mixes have been flat or declining. Medical office properties have seen the strongest appreciation in the office sector, with values increasing 10% to 15% as demand from Henderson's growing healthcare infrastructure expands.
This appreciation trend means Henderson property owners can often refinance at higher LTV dollar amounts while maintaining the same or lower LTV percentage, accessing more capital without increasing leverage risk.
Use our commercial mortgage calculator to model refinance scenarios for your Henderson property.
What Is the Henderson Refinance Process Timeline?
Understanding the refinance timeline helps Henderson property owners plan their transitions and avoid maturity date pressure on existing loans.
The complete Henderson commercial refinance process typically takes 45 to 75 days from application to closing for permanent loan programs. Bridge refinances can close in 14 to 21 days. DSCR refinances typically close in 21 to 30 days.
Week one through two involves loan analysis, lender selection, and application submission. During this phase, the borrower compiles current rent rolls, operating statements, existing loan documents, and borrower financials. Multiple lender quotes are obtained and compared.
Week three through six covers appraisal and underwriting. The new commercial appraisal using current Henderson market comparables is the critical path item, typically taking three to four weeks. Simultaneously, the lender reviews the submitted documentation, orders title work, and begins underwriting analysis.
Week six through eight covers final approval and closing. The lender issues final commitment with any remaining conditions, title and legal review is completed, closing documents are prepared, and the new loan funds. The existing lender is paid off and their lien released.
For Henderson property owners with approaching loan maturities, initiating the refinance process at least 90 to 120 days before the maturity date is strongly recommended. This timeline provides sufficient buffer for appraisal delays, underwriting questions, and any required property improvements.
Frequently Asked Questions About Commercial Refinancing in Henderson
How much does it cost to refinance a Henderson commercial property?
Refinancing costs for Henderson commercial properties typically range from 1.5% to 3.5% of the new loan amount. This includes origination fees (0.5% to 1.5%), commercial appraisal ($3,500 to $8,000), title insurance and escrow fees, legal review ($5,000 to $10,000), and Clark County recording fees. Any applicable prepayment penalty on the existing loan must be added to determine total refinance cost. The break-even analysis should demonstrate that monthly savings exceed the amortized cost of refinancing within a reasonable timeframe.
Can I refinance a Henderson property with a prepayment penalty?
Yes, Henderson property owners can refinance despite prepayment penalties on their existing loans. The analysis requires comparing the penalty amount against the present value of the interest savings from the new lower-rate loan. If a $50,000 prepayment penalty is offset by $5,000 per month in interest savings, the break-even period is 10 months. Properties with significant rate reduction opportunities often justify absorbing the prepayment penalty.
What is the minimum credit score for a Henderson commercial refinance?
Conventional commercial refinance programs typically require credit scores of 680 to 720. Agency multifamily programs require 660 or higher. DSCR refinance programs accept scores as low as 660, with the most competitive terms available for scores above 720. Hard money and bridge refinances may accept scores below 620 at higher rates and lower leverage.
Can I do a cash-out refinance on a Henderson property I bought recently?
Most cash-out refinance programs require a seasoning period of 6 to 12 months from the original purchase date. This means you must have owned the Henderson property for at least 6 months before extracting equity through a cash-out refinance. Some DSCR programs offer reduced seasoning periods of 3 to 6 months. Rate-and-term refinances (no cash out) generally have no seasoning requirement.
How do I know if refinancing makes sense for my Henderson property?
Refinancing makes sense when the monthly savings from a lower rate exceed the amortized cost of refinancing within your planned hold period, when you need to replace a maturing balloon payment, when you want to extract equity for new investments, or when restructuring the loan terms better aligns with your investment strategy. As a general rule, a rate reduction of 100 basis points or more on a loan you plan to hold for three or more years almost always justifies refinancing costs.
Can I refinance from a bridge loan to a permanent loan in Henderson?
Yes, bridge-to-permanent refinancing is the most common refinance transaction in Henderson. Once your property achieves stabilized occupancy (typically 85% to 90% or higher) and demonstrates stable income for 90 days, you can refinance from bridge rates of 8.5% to 11.5% into permanent rates of 5.25% to 7.50% depending on the property type and program. This rate reduction typically saves 35% to 45% on monthly debt service. Plan your permanent refinance application before the bridge loan maturity date to avoid extension fees.
Contact Clearhouse Lending to discuss refinance options for your Henderson commercial property and receive a free rate comparison showing your potential savings with current market programs.