It would normally be applied regardless of how the loan was paid off (either refi or sale). Some commercial loans are assumable - and if the terms are decent enough - you might be able to get around it that way. Prepays are often declining over the years - so look into your agreement as to how it works. If it makes sense to just wait a few months until the next anniversary to save another $20k, for example, you'll have to determine if that makes enough sense.
Otherwise, weigh out your opportunity costs for where else your money might be utilized to determine if it makes sense to hold on just for the purpose of saving the prepayment penalty money. If its a defeasance clause - all bets are off. Can get pretty hefty of the fees, which is why a lot of sellers require that the buyer takes it over. Look into your details - and/or have a number cruncher such as myself help you figure out your best option! I'm happy to help if you want to reach out to me.
Good luck to you!
Julia Ragland - KW Commercial
Aug 19, 2015