Refinance
Refinancing replaces an existing commercial mortgage with a new loan — to lower the rate, extend the term ahead of a balloon, or pull out equity (a cash-out refinance). Lenders size the new loan on current NOI, current market value, and prevailing rates, so a property's refinance capacity changes with the market.
The classic refinance trap: a loan originated in a low-rate environment reaches maturity when rates are higher, and the same NOI now supports a smaller loan. The difference must come from the owner's pocket.
In New York, a CEMA (Consolidation, Extension and Modification Agreement) can carry the existing mortgage tax basis into the new loan, saving most of the mortgage recording tax on the refinanced amount.