Case Study

Rent Roll Refinancings

This real estate holding company owned a mixed-use building that required major renovations and tenant acquisition. After previously partnering with GrowthLab on an operating business, the owners re-engaged us to support refinancing efforts aiming to recover renovation costs and better position the asset for long-term growth

Challenge

Post-Renovation Refinance, Rent Roll Development, and Financial Reporting Clarity

Industry

Real Estate

Services

• Accounting
• Banking Strategy
• Financial Reporting

A Renovated Building With Value to Unlock

This company is a real estate holding entity that we began working with through engagement with the owners, on one of their separate operating companies. The owners had purchased a building with both the anticipation of growth within their operating company, as well as the goal of enhancing the value of the building itself via upgrades and remodels. The building required major renovations and was in need of additional tenants to support the mortgage payments. The owners came to us following successful collaboration on their operating company to help with financial reporting and monthly accounting. After successful renovations, the owners were looking to refinance the building in order to recoup contractor costs and needed us to help develop rent rolls and aid in banking conversations.

Smart Setup, Clear Reporting, and Cap Rate Strategy

GrowthLab got this entity up and running on Quickbooks, while leveraging classes as well as bill pay software. Once historical cleanup and set up was completed, Growthlab worked with the management team to develop and then fine tune their rent rolls for the purpose of planning and refinancing potentials. As part of the rent roll process, GrowthLab did some research and analysis to understand local rent comps to drive cash flow, and therefore cap rates. In addition, we worked on setting up ongoing reporting for the higher purpose of understanding expenses, late payments from tenants, debt service covenants, etc.

Cap Rate Met, Cash Out Achieved, and Banking Relationship Strengthened

The refinance was successful: the owners secured the cap rate they targeted, pulled cash out of the property, and strengthened their bank relationship for future opportunities.

Ongoing collaboration continues with quarterly cash flow reviews, tax planning, and building strategy discussions, ensuring the property remains a strong, well-managed asset.

Advice for Other Business Leaders

When it comes to refinancing, numbers alone don’t close deals—clear reporting and lender-ready data do.

Make sure you have:

1. Updated and validated rent rolls
2. Transparent cash flow tracking
3. A team that understands how to navigate lender conversations
   

Final Thoughts

GrowthLab turned raw rent data and complex renovations into a clear financial story, helping the owners recapitalize their asset and build momentum for what’s next.