Restaurant Property Refinance: An $800,000 Cash-Out Loan on a Free and Clear Retail Property in Indian Wells, CA
In short
A long-time owner who built a restaurant and bar in Indian Wells, California, and has operated it for more than 30 years held the property free and clear, with the vast majority of his net worth tied up in the real estate. He wanted to put some of that equity to work as working capital for the business. Rubicon Mortgage Fund, LLC provided an $800,000 cash-out refinance secured by the retail property, underwriting the loan to the strength of the real estate, its prime location, and its decades of community presence.
Loan highlights
Rubicon Mortgage Fund, LLC funded an $800,000 cash-out refinance on a free and clear restaurant and bar property in Indian Wells, California. The 9,148-square-foot retail building sits on 0.77 acres. The loan provides working capital for the business, and the borrower plans to refinance with a conventional lender as the exit. The transaction came to Rubicon Mortgage Fund, LLC as a broker referral through the California Mortgage Association (CMA).
The property: a community fixture in a AAA location
The property is a 9,148-square-foot retail building on 0.77 acres in a AAA location in Indian Wells, one of the most affluent communities in the Coachella Valley. The city is known for its resort and golf destinations and draws a large population of retirees and seasonal residents with significant spending power.
The owner built the restaurant and bar himself and has served this community for more than 30 years. It is a well-loved local spot known for good food and live music, with bands playing regularly in the space. When Rubicon Mortgage Fund, LLC visited the site on a weekday, the restaurant was full.
The building is turnkey. No renovations were needed, and the business is fully dialed in. For an asset-based lender, that combination of a prime location, a proven operating history, and a well-maintained property creates a strong foundation for a loan.
The goal: putting decades of equity to work
Over three decades, the owner paid off the property entirely. Nearly all of his net worth was held in the building, which left him with significant equity but limited liquidity.
A cash-out refinance on a free and clear property lets an owner borrow against that equity without selling the asset. The owner kept full ownership of the property he built and gained working capital to support the operation of the business.
The borrower’s broker was connected to Rubicon Mortgage Fund, LLC through the California Mortgage Association (CMA), a statewide organization of private lenders, brokers, and real estate finance professionals.
The approach: asset-based underwriting for a restaurant property refinance
Cash-out refinances on single-tenant restaurant and retail properties often fall outside conventional lending guidelines, which tend to be structured around purchase financing and standardized property types. A restaurant and bar is a specialized asset, and a cash-out request adds another layer of review.
Rubicon Mortgage Fund, LLC is an asset-based lender, so the loan decision centered on the real estate. The property sits in a AAA location in an affluent, established resort community. It has more than 30 years of continuous operation behind it, the building is turnkey with no deferred work, and it was held free and clear with no existing liens.
With underwriting, legal, and servicing handled in-house, Rubicon Mortgage Fund, LLC offered the owner a streamlined process and certainty of execution from application through closing.
The exit strategy
The loan is short-term by design. The borrower plans to refinance with a conventional lender, using the Rubicon Mortgage Fund, LLC loan to access working capital now while positioning for long-term financing.
Why this structure worked
Asset-based underwriting allowed Rubicon Mortgage Fund, LLC to evaluate the loan on the property’s location, condition, and history. With no existing debt on the property, the lien position was simple. A restaurant and bar is a specialized asset, and it is a property type Rubicon Mortgage Fund, LLC is comfortable financing. Underwriting, legal, and servicing under one roof supported a streamlined close, and the borrower’s planned refinance with a conventional lender gave the loan a defined exit.
Frequently asked questions
Can you refinance a restaurant property?
Yes. Owners of restaurant and bar properties can refinance to pull equity out of the real estate. Asset-based lenders such as Rubicon Mortgage Fund, LLC evaluate the property’s location, condition, and income history when underwriting these loans.
What is a cash-out refinance on a free and clear property?
A cash-out refinance on a free and clear property is a new loan placed on real estate that has no existing mortgage. Because there is no prior lien to pay off, the loan proceeds go to the owner, who can use them for purposes such as working capital, investment, or other business needs.
Why would a property owner take cash out instead of selling?
A cash-out refinance lets an owner access equity while keeping the property. This is common for long-term owners whose wealth is concentrated in a single building and who want liquidity without giving up the asset.
Why can a cash-out refinance on a restaurant be harder to finance?
Restaurant and bar properties are specialized assets, and cash-out requests often involve additional review under conventional lending guidelines. Asset-based lenders that underwrite primarily to the real estate can offer a more streamlined path for these transactions.
Does Rubicon Mortgage Fund, LLC lend in the Coachella Valley?
Yes. Rubicon Mortgage Fund, LLC provides asset-based commercial real estate loans throughout California, including Indian Wells and the greater Coachella Valley.
What are Rubicon Mortgage Fund, LLC's loan terms?
Rubicon Mortgage Fund, LLC offers loan amounts from $500K to $15M, LTV up to 65%, terms from 6 to 24 months, interest-only payments starting at 8.5% fixed, and fees starting at 1.0%.
Work with Rubicon Mortgage Fund, LLC
Rubicon Mortgage Fund, LLC is a Lafayette, California-based private money lender providing short-term, asset-based commercial real estate financing. With in-house underwriting, servicing, and legal, Rubicon Mortgage Fund, LLC works with borrowers and brokers on cash-out refinances, specialty properties, and complex transactions across California.
Own a free and clear commercial property and want to put your equity to work? Contact our team to discuss your scenario.
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