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    State CRE Guide

    New York Commercial Real Estate Loans: MRT, CEMA & C-PACE

    What changes for a commercial property loan in New York: a 2.8% NYC mortgage recording tax, CEMA refinancing, transfer taxes, court foreclosure and C-PACE.

    By BestLoanUSA Updated 3 min read

    New York at a glance for commercial property loans
    WhatNew York
    Mortgage recording tax — New York City 2.8% of a commercial mortgage of $500,000 or more; 2.05% below $500,000 (city and state combined). [1]
    Refinancing with a CEMA When the existing mortgage is assigned to the new lender and consolidated, tax is due only on the new money, not the unpaid balance. [2]
    State real estate transfer tax 0.4% of the price; 0.65% on New York City commercial and multifamily sales of $2 million or more. [3]
    NYC real property transfer tax (commercial) 1.425% of a price up to $500,000; 2.625% above $500,000. [4]
    Foreclosure process Judicial. The lender must bring a foreclosure action in court. [5]
    C-PACE law and programs Municipalities opt in. EIC Open C-PACE covers member municipalities outside NYC; NYC C-PACE is administered by NYCEEC. [6]
    C-PACE volume $292.7 million across 35 projects, all-time through 2024 — before most of New York City's activity. [7]

    Checked 2026-09-29; sources are listed at the end of the page. Rates and rules change — your title company and closing attorney confirm the figures for a specific deal.

    Financing a property in New York? Compare lenders for your deal →

    A commercial property loan in New York uses the same programs as anywhere else — SBA 504, DSCR loans, bridge loans, bank, CMBS and life-company permanent loans. What makes New York different is the tax on recording the mortgage, the way refinances are structured to reduce it, the transfer taxes on a sale, and a court-supervised foreclosure process. In New York City these costs are large enough to change which deal makes sense.

    The mortgage recording tax

    New York taxes a mortgage when it is recorded. In New York City, the combined city and state rate on a commercial mortgage of $500,000 or more is 2.8%; below $500,000 it is 2.05%. Outside the city the rate is lower and depends on the county, so confirm it with your title company.

    Example: a $1,400,000 commercial mortgage in New York City. Recording tax: $1,400,000 × 2.8% = $39,200, due at closing, on top of title insurance, lender fees and legal costs. On the same loan in Texas there is no mortgage tax; in Florida, the stamps and intangible tax would be $7,700.

    CEMA: refinancing without paying the tax twice

    If you replace a loan with a new one, the new mortgage is taxed on its full amount. New York law offers a way around that: a consolidation, extension and modification agreement (CEMA). The existing mortgage is assigned to the new lender and consolidated with a new mortgage for any additional amount, and recording tax is due only on that new money.

    Example: you owe $1,200,000 and refinance into a $1,400,000 loan. With a CEMA, recording tax applies to the $200,000 of new money instead of the full $1,400,000. The current lender has to cooperate by assigning its mortgage, and not every lender will, so ask both lenders early. The refinance break-even calculator shows how much the tax saving shortens the payback on a refinance.

    Transfer taxes on a sale

    When a property changes hands, New York State charges a transfer tax of 0.4% of the price, rising to 0.65% for New York City commercial and multifamily sales of $2 million or more. The city adds its own real property transfer tax: 1.425% for commercial sales up to $500,000 and 2.625% above.

    Example: a $2,000,000 commercial building in New York City. State transfer tax: $2,000,000 × 0.65% = $13,000. City transfer tax: $2,000,000 × 2.625% = $52,500. Together $65,500 — before the $39,200 recording tax on a $1,400,000 loan. Transfer taxes are generally paid by the seller, but they shape the price, and the buyer's own recording tax is paid on the loan.

    Judicial foreclosure

    A New York lender can't sell a defaulted property on its own; it must bring a foreclosure action in court under Article 13 of the Real Property Actions and Proceedings Law. The process is slower and more expensive for the lender than a non-judicial state such as Texas, and lenders reflect that in how they size and structure loans — conservative LTV, close attention to DSCR, and guaranties. A non-recourse loan limits the lender to the property, with carve-outs; read them before you sign.

    C-PACE in New York

    New York's PACE law (Article 5-L of the General Municipal Law) lets municipalities secure financing for energy improvements with a benefit assessment on the property. Two programs operate, and neither is statewide by default. Outside New York City, EIC Open C-PACE, run by the non-profit Energy Improvement Corporation, finances only in municipalities that have joined it. In the five boroughs, NYC C-PACE is administered by NYCEEC for the City.

    The C-PACE Alliance's 2024 data counts $292.7 million across 35 New York projects since the programs began. That figure understates the market today: most of New York City's activity came after 2024. Because the assessment ranks ahead of the mortgage, C-PACE programs require the existing mortgage lender's consent. C-PACE Desk, a BestLoanUSA site, keeps New York program details current.

    Where to start

    Choose the program — SBA 504 for an owner-occupied building, a DSCR loan or permanent loan for an income property, a bridge loan for a transition — and model the recording and transfer taxes with the rest of the closing costs. For business financing that isn't tied to real estate, the New York business loan guide covers SBA offices and lenders by region.

    Ready to compare? Start a commercial real estate loan request — one application, compared across our lender network.

    💡 BestLoanUSA compares bank, SBA, DSCR and bridge lenders for New York commercial property. See how it works — no hard credit pull to start.

    Sources: NYC Department of Finance, Mortgage Recording Tax and Real Property Transfer Tax reports; N.Y. Tax Law §§255, 1402; N.Y. RPAPL art. 13; N.Y. General Municipal Law art. 5-L (NYSERDA); C-PACE Alliance, 2024 National C-PACE Program Volume Data (via C-PACE Desk, checked 2026-09-07).

    The bottom line

    In New York the taxes can be the largest closing cost on a commercial deal — in the city, the mortgage recording tax alone is 2.8% of a loan of $500,000 or more. Before you choose a lender, ask whether the existing mortgage can be assigned and consolidated under a CEMA, and put the recording and transfer taxes into the deal model on day one.

    Commercial property by metro area in New York

    The state rules above apply everywhere in New York. These are the local ones — county and city taxes, building mandates and programs — that change the numbers in its largest markets.

    New York City the five boroughs

    Local Law 97
    Most buildings over 25,000 sq ft must stay under annual greenhouse-gas limits; each metric ton over the limit costs $268 in penalties. Lenders and buyers now underwrite a building’s LL97 exposure. [8]
    C-PACE
    NYC Accelerator PACE (Local Law 96 of 2019), run by NYCEEC, can finance up to 100% of qualifying energy and LL97 compliance work, repaid through the property tax bill. [9]
    Facade inspections
    Buildings taller than six stories need a facade inspection every five years (Local Law 11); conditions rated unsafe must be repaired within 90 days of filing. [10]
    Commercial Rent Tax
    Tenants in Manhattan south of 96th Street paying $250,000 or more a year in rent owe an effective 3.9% of base rent — a cost that shapes achievable rents and net-lease underwriting. [11]

    Full New York City commercial real estate loan guide →

    Long Island Nassau and Suffolk counties

    Mortgage recording tax
    1.05% of the loan: both counties are in the MTA commuter district, where the special additional tax is 0.30% instead of the 0.25% charged upstate. [12]
    Peconic transfer tax
    Sales in East Hampton, Riverhead, Shelter Island, Southampton and Southold pay a 2% Community Preservation Fund tax (2.5% outside Riverhead since a 2022 housing-fund vote), paid by the buyer on top of the state tax. [13]
    IDA incentives
    The Nassau County IDA can grant approved projects a partial mortgage recording tax exemption, sales tax exemption on construction materials, and a PILOT property-tax schedule. [14]

    Westchester Westchester County

    Mortgage recording tax
    1.30% of the loan in Westchester outside Yonkers; 1.80% inside Yonkers, which adds its own city tax. [15]
    Yonkers transfer tax
    Yonkers charges its own 1.5% transfer tax on sales over $25,000, paid by the seller before the deed is recorded, on top of the 0.4% state tax. [16]

    Buffalo Erie County

    Mortgage recording tax
    1% of the loan: Erie County is outside the MTA commuter district, so it pays the upstate rate rather than the 1.05% charged downstate. [17]
    IDA incentives
    The Erie County IDA can grant approved projects a 0.75% savings on the mortgage recording tax, a sales tax exemption on construction materials, and a limited-term PILOT abatement. [18]

    Commercial loan rates and terms in New York

    Rates and leverage come from the lender, the property and the borrower, so they are the same national ranges in New York as elsewhere — what changes here are the closing costs and rules in the table above. Typical terms as of September 2026:

    ProgramRateMax LTV / LTCTerm
    Bank / credit union 6.5–8% 65–75% (80% multifamily) 5–10 yr
    SBA 504 6.25–7.25% Up to 90% 10–25 yr
    SBA 7(a) 8.5–11.5% Up to 90% Up to 25 yr
    DSCR 6.75–8.75% Up to 75–80% 5–30 yr
    CMBS 7–8% Up to 75% 5–10 yr
    Bridge 6.25–8.25% 65–80% 12–36 mo
    Construction 6.75–10.5% 65–80% LTC 12–24 mo

    How each range is built: commercial real estate loan rates by type.

    New York commercial real estate loan FAQ

    What are commercial mortgage rates in New York?

    Commercial lenders price a loan on the property and the borrower rather than the state, so New York rates follow national ranges: about 6.5–8% for a bank loan, 6.25–7.25% for SBA 504, 6.75–8.75% for a DSCR loan and 6.25–8.25% for a bank or debt-fund bridge loan (benchmarks as of September 2026).

    How much down payment do I need for a commercial property in New York?

    Typically 25–35% for a bank loan and 20–25% for a DSCR loan. An owner-occupied building can qualify for SBA 504 with 10% down (15% for a business under two years old or a special-purpose building, 20% if both).

    What is the mortgage recording tax on a commercial loan in New York City?

    2.8% of a commercial mortgage of $500,000 or more, and 2.05% below $500,000 (city and state combined). Outside the city the rate is lower and depends on the county.

    What is a CEMA?

    A consolidation, extension and modification agreement. When a refinance assigns the existing mortgage to the new lender and consolidates it, recording tax is due only on the new money, not the unpaid balance (N.Y. Tax Law §255).

    What transfer taxes apply to a commercial sale in New York City?

    New York State charges 0.4% of the price (0.65% on NYC commercial sales of $2 million or more), and the city adds 1.425% up to $500,000 or 2.625% above.

    Sources

    1. NYC Dept. of Finance, MRT report
    2. N.Y. Tax Law §255
    3. N.Y. Tax Law §1402
    4. NYC Dept. of Finance, RPTT report
    5. N.Y. RPAPL art. 13
    6. N.Y. Gen. Mun. Law art. 5-L — NYSERDA
    7. C-PACE Alliance 2024 data, via C-PACE Desk
    8. NYC Dept. of Buildings — LL97
    9. NYC Accelerator — PACE Financing
    10. NYC Dept. of Buildings — Facade Inspection & Safety Program
    11. NYC Dept. of Finance — Commercial Rent Tax
    12. NYS Dept. of Taxation — Mortgage recording tax
    13. Town of Southampton — CPF FAQ
    14. Nassau County IDA — Incentives
    15. Westchester County Clerk — Fees and Taxes
    16. City of Yonkers — Real Estate Transfer Tax
    17. Erie County Clerk — Land Record Fees
    18. Erie County IDA — Tax Incentives

    Checked 2026-09-29.

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