Loan Size Example

$3 Million Strip Center Refinance in Phoenix

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $3 million strip center refinance in Phoenix typically fits a small unanchored or weakly-anchored multi-tenant retail property of 10,000 to 25,000 square feet. Most $3M Phoenix strip center refis fund through bank balance sheet or specialty retail lenders given the unanchored retail lender contraction since 2020.

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Capital Stack

What a $3M Strip Center Refinance Capital Stack Looks Like

$3M Phoenix strip center refinances typically fund as bank balance sheet or specialty retail debt at 60 to 70 percent LTV.

Capital Source	Rate / Cost	Size / LTV	Notes
Specialty retail bank	7.95 to 9.25%	$3M / 60 to 70% LTV	Stabilized strip center
Bank balance sheet	7.85 to 9.45%	$3M / 60 to 70% LTV	Recourse typical
CMBS conduit	7.85 to 8.85%	$3M / 60 to 70% LTV	Some conduits at $3M minimum
DSCR / private	8.50 to 10.50%	$3M / 65 to 75% LTV	Smaller deals

Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.

Sponsor Profile

Who Closes a $3M Strip Center Refinance Deal

Typical $3M Phoenix strip center refinance sponsors are private capital retail investors with 2 to 8 properties. Sponsor active leasing capability matters substantially given small tenant turnover.

From the CLS CRE Pipeline

A Real $3M Example

On a $3.4M strip center refinance in suburban Phoenix (16,000 sq ft, 12 tenants), the sponsor refinanced an expiring bank loan into a specialty retail bank at 8.45 percent fixed 5-year, 65 percent LTV ($2.2M), with active lease-up plan for two vacant suites.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$3M Strip Center Refinance Phoenix FAQ

Unanchored retail cap rates expanded post-2020 reflecting life co retreat, e-commerce pressure, and lender selectivity. Strip centers in growing Sun Belt markets remain financeable but with tighter underwriting.

Phoenix has one of the strongest population growth profiles in the country, supporting retail demand. Market demographics and traffic count support stabilized retail.

For owner-occupied retail (where the borrower's business is one of the tenants), SBA 504 finances at 90 percent LTC. Pure investor strip centers are not SBA-eligible.