ON-DEMAND VIRTUAL CASE STUDY

When Choosing a Higher-Rate Loan Can Lower the Cost of Capital and Trigger the Promote

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Watch the case study!

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Refinancing into a higher interest rate may sound counterintuitive—but in the right scenario, it can unlock significant value. 

In this 15-minute case study, we’ll break down how a mid-market CRE firm chose a 6.75% bridge loan to replace a costly 13% preferred equity obligation—a move that simplified their capital stack, returned cash to investors, and triggered the promote. 

Don’t miss this behind-the-scenes look at how smart capital structure decisions drive long-term performance. 

Key takeaways:

✓   Blended cost of capital is a more strategic metric than interest rate alone when evaluating refinancing.

✓   Refinancing into a higher-rate loan can lower the overall cost of capital if it removes expensive preferred equity.

✓   Capital stack simplicity and control over exit timing can be more valuable than short-term cashflow gains.

✓   Creative refinancing can unlock equity, preserve upside, and better align interests—even in a rising rate environment.

Meet the Speakers

Luke Fuller
Director, Capital Markets

Director of Capital Markets. 10+ years in debt structuring, interest rate risk management, and capital markets execution. Expertise: securitization, derivative hedging strategies, structured finance, and financial modeling. Focus: optimizing debt portfolios, mitigating market risk, and executing transactions across asset classes. Advises investors, private equity firms, and REITs on loan restructuring, yield curve analysis, and portfolio risk assessment. Formerly with Colliers

Ali Mashal
Senior Debt Analyst

Senior Analyst, Capital Markets. 12+ years in CRE finance, debt structuring, financial modeling, and market research. Expertise: CMBS, interest rate hedging, cash flow modeling, credit analysis, and risk assessment. Focus: supporting deal execution, debt optimization, and market forecasting. Conducts due diligence, scenario analysis, and ensures transactions align with client goals and market conditions. Previously worked in corporate banking and FX transactions, and in private wealth management at Morgan Stanley.

Let's Talk — Zero Pressure, Just Actionable Insights

Whether you're weighing a refinance, reviewing loan terms, or navigating market pressure, our team will provide a live, expert second opinion tailored to your situation. We can review the debt market outlook, assess hedging strategies, model cashflow and debt scenarios, identify ways to optimize your capital stack, or just answer any questions you may have. It’s free, focused, and built to give you clear next steps.

Choose your time