ON-DEMAND VIRTUAL CASE STUDY

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

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. 
 

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.

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

Meet the Speakers:

Luke Fuller
Director, Capital Markets

Ali Mashal
Senior Debt Analyst

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.