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Commercial Terms A - M
10 pads Unit Density
Refers to the number of mobile home pads as being 10 pads per acre; represented by density of land coverage.
10 Yr US Treasury
An index rate; a published interest rate (or interpolation of rates) usually corresponding to
the current yield of a US Treasury note or bond, Prime Rate, LIBOR, etc. The Final Note
Rate is typically equal to the sum of the index rate plus the spread. Index rate yields are
typically published in daily papers by financial information services (e.g. Wall Street
Journal, Bloomberg).
100% Sprinklered
Identifies whether all areas of the building are sprinklered; a sprinkler system is typically
an automatic fire-suppression system with an audible alarm and that disperses an area
with water or fire retardant from overhead sprinklers when excessive heat and/or smoke
is detected. Fire systems are typically wet, dry or chemical systems.
30/360
An interest rate accrual method in which the interest calculation assumes that all 12
months of a calendar year have 30 days and uses a 360-day year. An Actual/360 interest
calculation charges interest for all 365 calendar days using a 360-day year. Therefore,
borrowers pay 5 days less interest than under Actual/360. The Actual/360 interest
calculation produces an effective interest rate that
< 10 pads Unit Density
Refers to the number of mobile home pads as being less than 10 pads per acre;
represented by density of land coverage.
> 10 pads Unit Density
Refers to the number of mobile home pads as being greater than 10 pads per acre;
represented by density of land coverage.
Above Average
Refers to a superior overall appearance and marketability of the property as it relates to
other comparable properties in the market or submarket; factors include actual and
effective age, structural and aesthetic appeal, physical condition, functional utility, etc.
Acre
A measure of land equal to 43,560 square feet, 4,840 square yards or 160 square rods. A
square parcel of land measuring 208.71 feet on each side contains one acre. There are
640 acres in a "section" of land.
Actual 360
An interest rate accrual method in which interest calculation charges interest for all 365
calendar days using a 360-day year. A 30/360 interest calculation assumes that all 12
months of a calendar year have 30 days and uses a 360-day year. Therefore, borrowers
pay 5 days more interest than under 30/360. The Actual/360 interest calculation produces
an effective interest rate that is 12 basis points higher than that produced by the 30/360
interest calculation.
Actual 365
An interest accrual method in which the annual interest will be divided by a 365 day year,
and the interest for each interest period will be the interest for the actual number of days
in that period. The number of days in the year for periodic calculation is usually one of
three choices: 1) actual days in the year (365 or 366 for leap years), 2) always 365 days,
or 3) always 360 days (based on 12 x 30-day months). Each interest basis reflects a
choice for computing the number of days in the interest period and the number of days in
the year in which interest is paid. Municipal and corporate bonds use the 30/360 basis,
and government bonds use Actual/Actual. T-bill discounts are calculated on an
actual/360 basis. Many variable rate municipal bonds are based on Actual/Actual or
Actual/365.
Actual/Actual
An interest accrual method in which the annual interest will be divided by a 365 or 366
day year, and the interest for each interest period will be the interest for the actual
number of days in that period.
Adequate - Ease of Ingress/Egress
Refers to a good degree of capacity to enter and exit a property.
Adequate Truck Turnaround
Refers to a good degree of capacity and ability for tractor-trailers to maneuver on the
property; based on the size and shape of the land. For example, an odd-shaped or odd sized
parcel of land may be appropriate for an office but may provide limited functionality
for industrial loading and delivery.
ADO - Average Daily Occupancy
A ratio, expressed as a percentage, that shows the average number of paid guests for
each room sold; calculated by dividing number of paid room guests by number of rooms
sold. Measures management's ability to effectively operate and promote the lodging
facilities.
ADR - Average Daily Rate
A hotel rate used to evaluate the average daily rate of a hotel inclusive of vacancy and
seasonality; the average rate charged by a hotel for one (1) room for one (1) day; arrived
at by dividing the total room revenue by the actual rooms occupied. A measurement used
to gauge the financial competitiveness of the market for similar properties, facilities
and/or guest rooms.
Advertising & Marketing
An expense line item that includes expenses for advertising, promotion, sales, and
publicity managers, secretaries and clerks and all related printing, stationary, artwork,
magazine space, broadcasting, and postage related to marketing.
All Exterior Guest Corridors
Identifies that all of the corridor area(s) through which guests gain access to sleeping
rooms are exterior (e.g. walkways that are subject to weather conditions.
All Interior Guest Corridors
Identifies that all of the corridor area(s) through which guests gain access to sleeping
rooms are interior and enclosed (e.g. walkways that are not subject to weather
conditions).
All Paved - Road Surfaces
Identifies all of the road surfaces as being paved with macadam, concrete, cement or
other similar surfacing.
Amortization
Identifies the loan amortization that is being quoted (in years); the period of time over
which principal and interest payments are scheduled. For example, a loan with a 10-year
term and a 25-year amortization will have a balloon payment at the end of 10 years. Also,
the maximum number of periodic installments (expressed in years) over which repayment
of a mortgage debt is calculated; a portion of each payment consists of a blend of interest
and amortization of principal.
Anchor
Identifies whether the tenant is an anchor tenant. An anchor tenant is a well-known
commercial business such as a national chain store, regional department store or
Fortune 500 company strategically placed in a shopping center or other commercial
building.
Annual Rent
Identifies the total annual rent, or base rent, paid by the tenant to the lessor.
Anticipated Closing Date
If the Loan Purpose is Purchase, identifies the anticipated or desired closing date of the
sale transaction.
Anticipated Completion Date
If the Loan Purpose is Construction, identifies the anticipated completion date of
construction.
Application Fee
A fee or schedule of fees charged by a lender at the time of loan application. This fee
may include the cost of an appraisal, credit report, processing fee or other closing costs
which are incurred during the process or the fee may be in addition to other charges.
Appraisal
An estimate of the value of a property, made by a qualified professional called an
appraiser; results in the estimated market value of the property.
Appraisal Date
Identifies the date of value on the last appraisal made on the property.
Appraisal Fee
A quoted or estimate fee to cover the cost of the appraisal required by the lender to
obtain a mortgage.
Appraised Value
Identifies the indicated value or market value based on the last appraisal made on
the property.
Asking Rent
Rental rate offered by the landlord to a prospective tenant; see Est. Market Rent.
Assisted Living
A Healthcare subtype; provides apartment-style accommodations where services focus
on providing assistance with daily living activities. These facilities are designed to bridge
the gap between independent living and nursing home care, and provide a higher level of
services for their residents including meals, housekeeping, medication assistance,
laundry, and regular checks-ins.
Assumption Fee
A fee, paid a borrower or lender, for the paperwork and processing of records necessary
to approve and document a new debtor.
At Grade
Identifies the height or elevation of the primary loading docks on the building; at grade
refers to a door level with the ground at the foundation of a building.
Available Funds
All funds available or collected, including prepayments, servicer, advances , etc.
Available Funds Cap
Limited amount of interest payable to certificate holders to the extent of interest accrued
on a group/pool of mortgage loans.
Average
Refers to an average or similar overall appearance and marketability of the property as it
relates to other comparable properties in the market or submarket; factors include actual
and effective age, structural and aesthetic appeal, physical condition, functional utility,
etc.
Avg. Lease Term
The average term (or length) of all leases encumbering the collateral property, expressed
in years.
Avg. Quality Metal General Building Exterior
Identifies the general property exterior to be constructed of average quality metal or
prefabricated metal.
Bankruptcy
Identifies whether a borrowing entity has filed for bankruptcy in the past. Bankruptcy -
court proceedings to relieve the debts of an individual or business unable to pay its
creditors. An individual, firm, or corporation who, through a court proceeding, is relieved
from the payment of all debts. Bankruptcy may be declared under one of several
chapters of the federal bankruptcy code.
Base Month
The month in which the instrument begins; in a lease, base month is the month in which
the lease starts. In a mortgage note, base month is the month in which the mortgage note
is executed.
Base Rent
The minimum stipulated rental rate in a lease agreement before adjustments for lease
concessions (if any); also the minimum fixed guaranteed rent in a commercial property
lease; separate from any overages or additional rental fees.
Base Year
The year in which the instrument begins; in a lease, base year is the year in which the
lease starts. In a mortgage note, base year is the year in which the mortgage note is
executed.
Below Average
Refers to an inferior overall appearance and marketability of the property as it relates to
other comparable properties in the market or submarket; factors include actual and
effective age, structural and aesthetic appeal, physical condition, functional utility, etc.
Blanket Loan
Refers to a mortgage that covers more than one parcel of real estate owned by the
mortgagor.
Borrower Affiliated
Identifies whether the tenant is affiliated or related to the borrower. Often, the rental rate
per square foot (or unit) paid the borrower-affiliated tenants may be less than or greater
than market rent; in which case, an underwriter might consider increasing or decreasing
the underwritten rent to normalize the income generated by the tenant (also referred to as
"mark to market").
Borrower Name
The name of the borrower/sponsor.
Borrower Net Worth
The value of all assets, including cash, less total liabilities. For underwriting purposes,
this is used as a guideline to indicate creditworthiness and financial strength. The net
worth of a business is represented by the amount that its assets exceed liabilities.
Borrower Type
The legal structure of the borrower/sponsor; options include Individual, Corporation,
Limited Liability Company (LLC), Trust, Limited or General Partnership, or Other.
Both - Dock Level
Identifies the height or elevation of the primary loading docks on the building; includes
both "dock height" and "at grade" levels.
Bridge Loan
Short-term mortgage financing that is in place between the termination of one loan and
the beginning of another loan. Also, a form of interim loan, generally made between a
short term loan and a permanent (long term) loan, when the borrower needs to have
more time before taking the long term financing.
Building Appearance and Marketability
The overall appearance and marketability as it relates to typical market standards. Options generally include below average, average, or above average.
Building Type
Determines the primary building type; options include Office, Multifamily, Mobile Home
Park, Retail, Industrial, Healthcare, Self Storage, Hotel, and Mixed Use.
Business or Vacation Primary Guest Types
Identifies that the hotel rooms are predominately occupied by business and/or vacation
travelers.
Business Primary Guest Types
Identifies that the hotel rooms are predominately occupied by business guests.
Business/Economy Primary Guest Types
Identifies that the hotel rooms are predominately occupied by business and/or economy
guests.
Butler-Type Building
A pre-engineered metal building typically used for light industrial purposes; characterized
by pre-engineered metal walls and/or wood pole barn construction.
Cafeterias
A dining area where meals are served and eaten.
CAM & Utilities
Common Area Maintenance (CAM); Operational expenses related to the utilities and
maintenance of retail and office properties; under a Triple-Net lease the Tenant is
required to reimburse the Landlord for their proportionate amount (based on square
footage) of this expense.
Cap Ex.
An expense line item that includes expenses for anticipated capital expenditures required
to maintain a building and future capital improvements of major building systems (e.g.
HVAC, parking lot, carpets, roof, etc.). Replacement reserves are typically calculated on
a per unit basis (e.g. multifamily - per unit; office, retail, industrial - per square foot; etc.).
Capitalization Rate
A guideline provided by a Lender that suggests a capitalization rate for the proposed
loan. A Lender bases this guideline on numerous factors including property type, loan
amount, and numerous physical, financial and tenancy factors identified in the proposed
loan. The cap rate is the rate of return on net operating income considered acceptable
for an investor and used to determine the capitalized value. This rate should provide a
return on, as well as a return of, capital; also known as "cap rate". Also, the ratio of
the annual NOI to the property price (or value). The formula is: Value = annual Income
divided by the capitalization Rate (V=I/R). For example, if a property generates $100,000
of net operating income and the capitalization rate is 10.0%, then the capitalized value of
the income stream is $1,000,000. Conversely, if a property generated $100,000 of net
 operating income and was sold for $1,000,000, then the sales cap rate is 10.0%. Cap
rates are determined by various methods including market driven (derived from comparable
sales), band of investment technique (mortgage equity analysis), Ellwood formula, Akerson format, etc.
Cash Flow
Amount of money a building generates after debt service.
CBD Office
An Office subtype characterized by its location in a Central Business District (CBD); the
downtown section of a city, generally consisting of retail, office, hotel, entertainment, and
government land uses with some high-density housing.
Central Business District
Central Business District (CBD); the downtown section of a city, generally consisting of
retail, office, hotel, entertainment, and government land uses with some high–density
housing.
Change Status
Changes the Loan Status.
Check if Vacant Space
Identifies whether the leased area is vacant. Lenders generally will account for this
leased area as net rental area and will multiply the estimated market rent times the
vacant area when calculating the Potential Gross Income (PGI).
Class A
A property classification for properties that are above average in terms of design,
construction and finish; command the highest rental rates; have a superior location, in
terms of desirability and/or accessibility; generally are professionally managed by
national or large regional management companies.
Class A Office Surrounding land Use
Identifies the general land use of the surrounding and/or adjacent properties in
comparison to the collateral property. A Class A Office property classification refers to
properties that are above average in terms of design, construction and finish; command
the highest rental rates; have a superior location, in terms of desirability and/or
accessibility; generally are professionally managed by national or large regional
management companies.
Class B
A property classification for properties that frequently do not possess design and finish
reflective of current standards and preferences; construction is adequate; command
average rental rates; generally are well maintained by national or regional management
companies; unit sizes are usually larger than current standards.
Class B Office Surrounding land Use
Identifies the general land use of the surrounding and/or adjacent properties in
comparison to the collateral property. A Class B Office property classification refers to
properties that frequently do not possess design and finish reflective of current standards
and preferences; construction is adequate; command average rental rates; generally are
well maintained by national or regional management companies; unit sizes are usually
larger than current standards.
Class C
A property classification for properties that provide adequate functionality, exhibit some
level of deferred maintenance; command below average rental rates; usually located in
less desirable areas; generally managed by smaller, local property management
companies; tenants provide a less stable income stream to property owners than Class A
and B tenants.
Class C Office Surrounding land Use
Identifies the general land use of the surrounding and/or adjacent properties in
comparison to the collateral property. A Class A Office property classification refers to
properties that provide adequate functionality, exhibit some level of deferred
maintenance; command below average rental rates; usually located in less desirable
areas; generally managed by smaller, local property management companies; tenants
provide a less stable income stream to property owners than Class A and B tenants.
Clear Ceiling Height
The dominant or typical vertical measurement from the floor of the structure to the bottom
of the lowest overhead beam (under beam); expressed in feet. Also referred to as “clear
headway” or “clearance.”
Clubhouses
Identifies the number of clubhouses located on the property.
Co-op
A Multifamily subtype; characterized by its method of multiple ownership in which a
corporation or business trust entity holds title to a property, (usually an apartment
complex) and grants occupancy rights to shareholder tenants through proprietary leases.
Also called a "cooperative."
Common Area Maintenance
Identifies the method by which the tenant is responsible for payment or reimbursement of
Common Area Maintenance (CAM) and utility charges.
Community Shopping Center
Open shopping center of 100,000 - 400,000 square feet. Tenants: Supermarket and/or
department or discount store.
Conduit
The financial intermediary that sponsors the conduit between the lender(s) originating
loans and the ultimate investor. The conduit makes or purchases loans from third party
correspondents under standardized terms, underwriting and documents and then, when
sufficient volume has been obtained, pools the loans for sale to investors in the CMBS
market.
Congregate Care
A Healthcare subtype; similar to independent living, but features a community
environment, with one or more meals per day prepared and served in a community dining
room. Many other services and amenities may be provided such as transportation, pools,
a convenience store, bank, barber/beauty shop, resident laundry, housekeeping, and
security.
Construction
An event resulting in the construction, renovation or rehabilitation of real estate. The  purpose
 for which the loan request is being completed; options include Purchase, Refinance, Construction.
Construction Costs
If the Loan Purpose is Construction, identifies the total cost of construction (including all
hard costs and soft costs and land acquisition cost, if applicable).
Construction Loan
A short term loan to pay for the construction of commercial buildings. These loans
typically provide periodic disbursements to the builder as each stage of the building is
completed. When construction is completed a take–out or permanent loan is used to pay
off the construction loan.
Contract Rent
Actual rent as specified in a rental or lease agreement, as opposed to actual market or
economic rent. Contract Rent may differ from Market Rent which is the rental income
 that a property is likely to command in the under current market conditions. Market rent,
also referred to as economic rent, may be either higher or lower than contract rent.
Corner Located
Identifies whether the property is has frontage on one or more streets or is otherwise
located on a corner or street intersection. For certain properties, corner location may
increase the overall appeal and marketability of the property (e.g. hotel, high-scale retail,
self-storage, etc.).
Corporate Housing
Identifies whether the multifamily property is occupied by corporate tenants. In multifamily
underwriting, clauses may be included in leases that allow the tenant to terminate the
lease without penalty if and when the tenant is transferred to another location.
Corporation
A borrowing entity structured as a group of people granted a charter legally recognizing
them as a separate entity having its own rights, powers, privileges and liabilities distinct
and separate from those of its members.
Costs Documented
If the Loan Purpose is Refinance, identifies whether the cost of the improvements (e.g.
renovations, capital improvements) made to the property following the acquisition can be
documented; usually supported by invoices or work receipts.
Covered Parking Spaces
Parking spaces under a roof or other structure designated to the specific property and/or
building.
Credit Rated
Identifies whether the tenant is an investment grade tenant with a BBB- rating or higher.
Credit Report Fee
A fee charged to obtain a credit report on the borrower or borrowing entity. A credit report
is an evaluation of a person's capacity (or history) of debt repayment. Generally available
for individuals from a local retail credit association; for publicly held companies by such
firms as Dunn & Bradstreet; and for bonds by such firms as Moody's, Standard & Poor’s,
and Fitch's.
Current Index Yield
The corresponding yield of a published interest rate, such as the Prime Rate, LIBOR,
Treasury Bill / Treasury Note rate, 11th District COFI, etc. Lenders use indexes to
establish interest rates charged on mortgages or to compare investment returns. A final
note rate typically includes an Index Yield plus a Spread.
Current Interest Rate
If the Loan Purpose is Refinance, identifies the current interest rate of the existing
mortgage note.
Current Year
The current calendar year in which the analysis takes place; generally a partial year that
results in a year-to-date representation.
Dark Space
Vacated retail space. Tenant may be still paying rent but "induced" smaller tenants may
exercise right to cancel leases with the major tenant goes "dark".
Date Acquired
If the Loan Purpose is Refinance, identifies the date on which the property was acquired.
Date of Last Sale
Identifies the date of the last sale or legal conveyance of the property.
Debt Coverage Ratio
Measures a mortgaged property's ability to cover monthly payments defined as the ratio
of net operating income over the mortgage payments. A DCR, or DSCR (debt service
coverage ratio), of less than 1.0 means that there is insufficient cash flow generated by
the property to cover required debt payments.
Debt Service Coverage Ratio
Measures a mortgaged property's ability to cover monthly payments defined as the ratio
of net operating income over the mortgage payments. A DSCR of less than 1.0 means
that there is insufficient cash flow generated by the property to cover required debt
payments. DSCR is calculated by taking the Net Operating Income and dividing it by the
 Debt Service.
Departmental Revenue (Hotel)
The total revenue from hotel operations that includes revenues from Food & Beverage,
Telephone, Other Departmental Revenue and Other Income.
Direct Billed Expense Reimbursement
Identifies that the cost of the associated item is directly billed to the lessee; different from
a tenant reimbursement.
Dirt/Gravel - Road Surfaces
Identifies the road surfaces as being dirt or gravel surfaced, and not paved with
macadam, concrete, cement of other similar surfacing.
Discount Margin
The difference between the price of a security and the face amount of the security.
Discount Rate
The rate applied to each year’s cash flow from a building to determine the net present
value (NPV) of a series of cash flows.
Dock Height
Identifies the height or elevation of the primary loading docks on the building; dock height
loading docks facilitate the transfer of products or materials directly from a building to a
vehicle (usually a truck or tractor trailer); dock height platforms typically allow a forklift to
drive from the building directly on to a vehicle; often with dock levelers to provide a flush
level surface.
Dock Level
Identifies the type and level of the dock facilities. Options generally include Dock
Height, At Grade, Both or Don't Know.
Ease of Ingress/Egress
Ingress - entrance; egress - exit; capacity of Ingress/Egress relates to the
capacity and convenience of the entrance(s) and exit(s) of a property.
Effective Gross Income
Term used for an income-producing property, derived from the potential gross income,
less a vacancy factor and a collection loss amount.
Electronic Gate Access
Gated access that secures the entrances and exits to a property.
Elevatored
Identifies that the building is serviced by an elevator.
Engineering Fee
A quoted or estimate fee to cover the cost of the engineering report or property inspection
required by the lender to obtain a mortgage.
Escalator
A moving stairway consisting of steps attached to a continuously circulating belt.
Est. Market Rent
The amount for which the competitive rental market indicates property should rent. Also
referred to as "economic rent." Generally, contract lease rates are "marked to market" if
contract rent is greater than or less than market rent.
Est. Market Vacancy
The overall percentage of all units or space that is unoccupied or not rented in a market
or sub-market. On a proforma income statement a projected vacancy rate is used to
estimate the vacancy allowance, which is deducted from potential gross income to derive
effective gross income.
Excess Interest/Spread
Interest received from repayments that is greater than the interest on the certificates. It is
defined as the difference between the interest paid on the mortgage loans (net of
servicing fees) and the interest accrued on the certificates.
Exercise Rooms
Identifies the number of exercise rooms located on the property.
Existing Loan Balance
If the Loan Purpose is Refinance, identifies the remaining principal loan balance of the
existing note to be refinanced.
Expense Matrix
see MBA Coding Matrix in Table of Contents
Expense Reimbursements
Income received from the tenant as a reimbursement of expenses paid by the landlord. In
a lease, an expense reimbursement clause stipulates that some or all of the operating
expenses paid by the landlord are recoverable (reimburseable) from the tenant; also
called expense recoveries, reimburseables, billables or pass-throughs. Recoverable
expenses are deducted as expenses and (offsetting) recoveries are treated as separate
revenue items in income and expense statements.
Extended Stay Primary Guest Types
Identifies that the hotel rooms are predominately occupied by long-term guests (usually
one week or greater).
Extraordinary Capital Exp.
Actual major capital expenditures that were not anticipated; these expenses are typically
non-recurring expenses and are generally normalized to zero.
Fannie Mae
Federal National Mortgage Association; commonly known as "Fannie Mae", the FNMA is
the largest buyer of existing mortgages. The Federal National Mortgage Association was
originally organized by the federal government in 1938 to purchase FHA-insured
mortgages. The association was reorganized in 1968 as a quasi-private corporation
whose entire ownership is private. Fannie Mae raises capital by issuing corporate stock
which is actively traded on the New York Stock Exchange and by selling mortgages out
of its portfolio to various investors.
Federal National Mortgage Association
Federal National Mortgage Association; commonly known as "Fannie Mae", the FNMA is
the largest buyer of existing mortgages. The Federal National Mortgage Association was
originally organized by the federal government in 1938 to purchase FHA-insured
mortgages. The association was reorganized in 1968 as a quasi-private corporation
whose entire ownership is private. Fannie Mae raises capital by issuing corporate stock
which is actively traded on the New York Stock Exchange and by selling mortgages out
of its portfolio to various investors.
FF&E (Hotel)
(Hotel) A guideline provided by a Lender that suggests the minimum required reserves
for furniture, fixtures and equipment (FF&E) for the proposed loan. A Lender bases this
guideline on numerous factors including property type, loan amount, proposed loan to
value and debt service coverage, and numerous physical, financial and occupancy
factors identified in the proposed loan.
FF&E / Cap. Ex.(Hotel)
Furniture, fixtures and equipment; an expense line item in hotel properties that represents
a reserve to fund the replacement of furniture, fixtures and equipment; commonly referred
to as FF&E.
FICO Score
A credit bureau risk score produced from models developed by Fair, Isaac and Company,
Inc.; commonly known as FICO scores. Fair, Isaac credit bureau scores are used by
lenders and others to assess the credit risk of prospective borrowers or existing
customers, in order to help make credit and marketing decisions. These scores are
derived solely from the information available on credit bureau reports. Credit bureau
scores are often called "FICO scores" because most credit bureau scores used in the US
are produced from software developed by Fair, Isaac and Company (FICO). FICO scores
are presently provided to lenders by the three major credit reporting agencies: Equifax,
Experian and Trans Union.
Filed Bankruptcy
Identifies whether a borrowing entity has filed for bankruptcy in the past. Bankruptcy -
court proceedings to relieve the debts of an individual or business unable to pay its
creditors. An individual, firm, or corporation who, through a court proceeding, is relieved
from the payment of all debts. Bankruptcy may be declared under one of several
chapters of the federal bankruptcy code.
Final Note Rate
Identifies the loan Final Note Rate that is being quoted.
Fitness Center (Building)
A room or area in which exercise and other fitness-related equipment is used (e.g. weight
room, Nautilus center).
Fixed Rate
A mortgage with an interest rate that remains constant for the life of the loan.
Flex Space
An Industrial property subtype in which the property is occupied by one or more tenants
and the property is utilized for industrial/office purposes. A Flex space property is typically
a one or two story building with little or no common areas, high ceilings, loan-bearing
floors and loading dock facilities; usually configured to allow a small amount of office
space in combination with light assembly or warehouse/distribution uses.
Floor-to-Area Ratio
The relationship between the total amount of floor space in a multi-story building and the
base of that building. FARs are dictated by zoning laws and vary from one neighborhood
to another, in effect stipulating the maximum number of stories a building may have.
FNMA/DUS Financing
A loan program through a lender designated by Fannie Mae who originates, underwrites,
closes, and services Fannie Mae approved multifamily mortgage loans.
Food & Beverage Expense (Hotel)
An expense line item for hotel properties. Food expenses represent the expenses related
to food revenue, including functional areas such as breakfast, lunch and dinner
restaurants, room service, carry out, lounge food, sundry/merchandise, banquet food and
kitchen. This item includes food cost of sales, salaries and wages, payroll taxes and
benefits, and other related expenses such as advertising, china/glass/silver, cleaning
supplies, contract cleaning/labor, decorations, entertainment, equipment rental,
glass/plastic supplies, guest satisfaction/supplies/transportation, happy hour appetizers,
in-room entertainment, kitchen fuel, laundry allocation, licenses, linen, menus,
miscellaneous, napkins, office supplies, operating supplies, over/(short), paper supplies,
preparation supplies, printed supplies, promotion, telephone admin., training materials,
uniforms, etc. Beverage expenses represent the expenses related to beverage revenue
(bar and banquet bar), including beverage cost of sales, salaries and wages, payroll
taxes and benefits, and other related expenses such as advertising, Cable TV,
china/glass/silver, cleaning supplies, contract cleaning/labor, decorations, entertainment,
equipment rental, glass/plastic supplies, guest satisfaction/supplies/transportation, happy
hour appetizers, in-room entertainment, laundry allocation, licenses, linen, menus,
miscellaneous, napkins, office supplies, operating supplies, over/(short), paper supplies,
printed supplies, promotion, telephone admin., training materials, uniforms, etc.
Food & Beverage Revenues (Hotel)
A revenue line item for hotel properties. Food & Beverage revenues represent the income
from functional areas such as breakfast, lunch and dinner restaurants, room service,
carry out, lounge food, sundry/merchandise, banquet food and kitchen and all beverage
revenue (bar and banquet bar).
Food and Beverage
In hotel operations, when the food and beverage department is managed independently
from the general hotel operations.
Foreclosure
The process by which a mortgagee (lender) takes back a property on which the
mortgagor (borrower) has defaulted. A servicer may take over a property from a borrower
on behalf of a lender. A property usually goes into the process of foreclosure if payments
are more than 90 days past due.
Franchise Affiliated (Hotel)
(Hotel) A franchise agreement allows the hotel to operate under a particular brand name
and assures the hotel will be competently managed. Most hotels rely on their franchise
agreement to give the property a brand name, to identify and define the service the hotel
sells, and to produce a large percentage of its reservations. Franchises, or flags, include
Holiday Inn, Marriott, Hilton, Comfort Inn, etc.
Franchise Fees (Hotel)
An expense line item representing the undistributed expenses (fees) related to the
franchise including royalties, national advertising, and administration of frequent guest
stay or similar programs. These fees can include part of an initial purchase requirement
plus an ongoing percentage of gross sales of the business.
Franchise Name (Hotel)
(Hotel) The name of the franchise (e.g. Holiday Inn, Marriott, Hilton, Comfort Inn, etc.)
Freddie Mac
Federal Home Loan Mortgage Corporation.
Free Standing Retail
A Retail property subtype in which the property is occupied by one tenant and the
property is utilized for retail purposes; fast-food franchises and high-scale retail stores are
often free-standing buildings; sometimes called "big-box"; typical gross building area
ranges from 2,000 to 100,000 square feet.
Freight Elevator
An elevator used to carry freight, typically separate from a passenger elevator. Elevators
should be adequate in terms of speed, load capacity, safety, number, and they should be
able to meet peak period demands. Appraisers judge the adequacy of elevators using
established standards (e.g. one elevator per 25,000-40,000 square feet of GBA). Elevator
service impacts the overall functionality of the property.
Full Recourse
Identifies whether the lender accepts full-recourse loan requests from the LendingApps
matching engine; completed by the lender. This entry can be modified by the lender at
any time from the Lender Administration screen.
Full Service - Luxury Hotel
A Full Service Hotel property subtype typically has a full array of services available to the
traveler. The extent of these amenities varies, depending on the type of the hotel/motel
(star rating, etc.), particular chain, etc. However, at a bare minimum, the property should
offer: on-site restaurant or dining facilities; meeting or banquet rooms; swimming pool;
and 24-hour lobby/front desk. Other amenities frequently found in full-service facilities
include: business centers; one or more retail shops to serve guests; more extensive
health clubs; and transportation to and from airports or other nearby destinations. Floor
plans of the guest rooms vary the most of any type of hotel property, from basic guest
rooms, to "junior" suites, to larger suites suitable for VIP parties. This type of property is
usually the most susceptible to profitability pressure, due to the fact that there are
relatively high operating costs, due to the full service nature of the property, while the
same time there is pressure on revenues, due to the fact that the property often
competes with limited service properties in close proximity, which can charge lower room
rates. This subtype typically ranges from 500-room resorts to 300-room all-suite hotels.
Luxury hotels would include Crowne Plaza, Doubletree, Embassy Suites, Hilton, Hyatt,
Marriott, Omni, Radisson, Residence Inns, Sheraton, Stouffer Hotels, Sonesta and
Westin, in addition to a wide array of well-known independent hotels.
Full Service - Midscale Hotel
A Full Service Hotel property subtype typically has a full array of services available to the
traveler. The extent of these amenities varies, depending on the type of the hotel/motel
(star rating, etc.), particular chain, etc. However, at a bare minimum, the property should
offer: on-site restaurant or dining facilities; meeting or banquet rooms; swimming pool;
and 24-hour lobby/front desk. Other amenities frequently found in full-service facilities
include: business centers; one or more retail shops to serve guests; more extensive
health clubs; and transportation to and from airports or other nearby destinations. Floor
plans of the guest rooms vary the most of any type of hotel property, from basic guest
rooms, to "junior" suites, to larger suites suitable for VIP parties. This type of property is
usually the most susceptible to profitability pressure, due to the fact that there are
relatively high operating costs, due to the full service nature of the property, while the
same time there is pressure on revenues, due to the fact that the property often
competes with limited service properties in close proximity, which can charge lower room
rates. This subtype typically ranges from 200-room resorts to 100-room all-suite hotels.
Mid scale hotels would include hotel types from 250-room airport locations to 100-room
roadside franchise properties. Such properties may include Best Western, Clarion, Days
Inn, Holiday Inn, Howard Johnson, Marriott Courtyard, Park Inn, Quality Inn, Rodeway
Inn and Ramada Inn, as well as quality independent hotels.
Full Service - Resort Hotel
A Full Service Hotel property subtype typically has a full array of services available to the
traveler. The extent of these amenities varies, depending on the type of the hotel/motel
(star rating, etc.), particular chain, etc. However, at a bare minimum, the property should
offer: on-site restaurant or dining facilities; meeting or banquet rooms; swimming pool;
and 24-hour lobby/front desk. Other amenities frequently found in full-service facilities
include: business centers; one or more retail shops to serve guests; more extensive
health clubs; and transportation to and from airports or other nearby destinations. Floor
plans of the guest rooms vary the most of any type of hotel property, from basic guest
rooms, to "junior" suites, to larger suites suitable for VIP parties. This type of property is
usually the most susceptible to profitability pressure, due to the fact that there are
relatively high operating costs, due to the full service nature of the property, while the
same time there is pressure on revenues, due to the fact that the property often
competes with limited service properties in close proximity, which can charge lower room
rates. This subtype typically ranges from 500-room resorts to 300-room all-suite hotels.
Resort hotel properties are characterized as properties that are the destination and/or
attraction themselves for travelers. People come to a resort for the resort itself and often
for no other purpose. Usually set in locations of significant natural beauty or with other
nearby dominant attractions, resorts feature the amenities of a full-service hotel property,
often with additional amenities such as various sports facilities and/or swimming pools,
manicured grounds and landscaping, special and/or premium entertainment offerings and
guest activities of various types. There are usually adequate facilities for meetings and/or
conferences, as many business functions are often held at resorts. Resorts are often
clustered in close proximity to other resorts. While operating costs tend to be high at most
resort properties, room revenues are usually less susceptible to pressure, due to the
destination characteristics of the property and the lower sensitivity to price among most of
the property's customers.
Full Service Lease
Lease structure under which the landlord pays all building expenses. Also called a Gross
Lease.
Furnished Units
Identifies whether any or all units are furnished.
General & Administrative
A line item expense that includes expenses incurred in property operation. The items in
this category depend on the nature of the real estate, but usually include payroll
expenses to all employees whose services are essential to property operation and
management, but whose salaries are not included in other specific expense categories.
Also includes fees paid for any professional services contracted for or incurred in
property operation, and any other general administrative expenses incurred in property
operation. The salaries of property managers, rent of offices, office and general
expenses, and costs for non-custodial personnel and the services needed to operate the
property are also included. For Hotels - Administrative & General (Undistributed) Includes
all of the managerial and operational expenses that cannot be attributed to a particular
department. Components include: salaries and wages, payroll taxes, and payroll benefits.
Other administrative and general expenses include: accounting services, armored car,
audit/tax preparation, bad debt, bank service charges, computer services,
conference/meeting expense, corporate office expense, other commissions, consulting
services, contract labor, credit card charge backs and commissions, discounts, donations
and contributions, dues and subscriptions, education assistance, employee relations,
entertainment and meals, equipment rent, general insurance, laundry allocation, legal,
licenses, losses and damages, miscellaneous expense, office supplies, operating
supplies, over/short, pager rental, partnership office expense, payroll processing fees,
penalties, piped-in music, postage and shipping, postage-express delivery, printed
supplies, professional services, provision for doubtful accounts, recruiting, relocation,
returned checks, sales and use tax, security services, special awards, telephone
administrative, training materials, travel, travel meals and lodging, and uniforms.
Ginnie Mae
Government National Mortgage Association.
Good Quality Metal General Building Exterior
Identifies the general property exterior to be constructed of good quality metal with a
detailed finish or appearance.
Govt Primary Guest Types
Identifies that the hotel rooms are predominately occupied by government employees.
Grocery Anchored Retail
A Retail property subtype in which the property is occupied by one or more tenants
including a grocery anchor tenant and the property is utilized for retail purposes.
Gross Building Area
The total building area; referred to as GBA; generally excluding all rental area plus any
common areas (e.g. elevators, hallways, stairways, etc.).
Gross Leasable Area
The area for which tenants pay rent; referred to as GLA.
Gross Lease
Lease structure under which the landlord pays all building expenses. Also called a Full
Service Lease.
Gross Reimbursement Structure
A lease structure in which the lessor is responsible for all costs of maintaining the
property. Opposite of net lease, where the tenant pays these costs.
Ground Lease
A lease on undeveloped land or a lease covering the land but not improvements. Usually
a net lease. In LoanSizer it identifies whether the property is encumbered by a ground
lease. Ground leases may be subordinated or unsubordinated. Subordinated Ground
lease - A lease in which rights of the lessor of the ground are junior to the rights of the
holder of the first mortgage. Unsubordiated Ground lease - A lease in which rights of the
lessor of the ground are senior to the rights of the holder of the first mortgage.
Ground Lease Expiration Date
Identifies the expiration of a ground lease encumbering or otherwise relating to the
property (expressed as a date). Ground leases may be subordinated or unsubordinated.
Ground Rent
A line item expense that represents the rent paid for the right to use and occupy land
according to the terms of a ground lease; the portion of the total rent allocated to the
underlying land. Rent paid for land in accordance with the terms of a ground lease.
Guest Corridors (Hotel)
In hotels, the area(s) through which guests gain access to sleeping rooms. In LoanSizer,
options include All Interior, All Exterior, Mostly Interior, Mostly Exterior.
Health Care
A general property type or building type classification characterized by its usage for
healthcare purposes. In LoanSizer, subtypes include Nursing Home, Congregate Care,
Assisted Living, Other.
Heavy Industrial
An Industrial property subtype in which the property is occupied by one or more tenants
and the property is utilized for heavy industrial purposes (e.g. heavy manufacturing,
petroleum products, cement, junk yards, auto junk yards, rock crushing plant, steel
fabrication, etc.).
Heavy Industrial Surrounding land Use
Identifies the general land use of the surrounding and/or adjacent properties in
comparison to the collateral property. Heavy Industrial refers to an Industrial property
subtype in which the property is occupied by one or more tenants and the property is
utilized for heavy industrial purposes (e.g. heavy manufacturing, petroleum products,
cement, junk yards, auto junk yards, rock crushing plant, steel fabrication, etc.).
High Traffic
A count of the number of vehicles moving past a location during a period of time; usually
expressed as "Average Daily Traffic" (ADT) and characterized as High, Medium or Low.
High-Rise Apts
A Multifamily subtype; a five- or more story apartment building or development; typically
elevator-serviced.
Higher Scale Residential Surrounding land Use
Identifies the general land use of the surrounding and/or adjacent properties in
comparison to the collateral property. Higher Scale Retail includes retail properties with a
higher-scale use as compared to the collateral property (e.g. a regional mall would be a
higher-scale use as compared to a neighborhood strip center).
Higher Scale Retail Surrounding land Use
Identifies the general land use of the surrounding and/or adjacent properties in
comparison to the collateral property. Higher Scale Retail refers to retail properties with a
higher-scale use as compared to the collateral property (e.g. a regional mall would be a
higher-scale use as compared to a neighborhood strip center).
Highway Access
Identifies whether the property has nearby highway access. Generally, nearby when
relating to highway or interstate access means within 1 mile.
Highway Visibility
Identifies whether the property is visible from a highway or interstate. For certain
properties, highway or interstate visibility may increase the overall appeal and
marketability of the property (e.g. hotel, high-scale retail, self-storage, etc.).
Hospital Distance
The distance (in miles) from a hospital or urgent care facility.
Hotel
A general property type or building type classification characterized by its usage as a
hotel.
HVAC
Heating, ventilation, air conditioning. In LoanSizer, the percentage coverage of heating,
ventilating, and air-conditioning system (HVAC) in a building.
I/E Notes
Notations or comments made by the originator and/or lender to detail, explain, or
otherwise comment on a specific income/expense line item.
Improvement Cost
If the Loan Purpose is Refinance, identifies the cost of the improvements (e.g.
renovations, capital improvements) made to the property following the acquisition.
Improvements Made
If the Loan Purpose is Refinance, identifies the whether improvements (e.g. renovations,
capital improvements) were made to the property following the acquisition.
Inadequate - Ease of Ingress/Egress
Refers to a less than adequate degree of capacity to enter and exit a property.
Inadequate Truck Turnaround
Refers to a less than adequate degree of capacity and ability for tractor-trailers to
maneuver on the property; based on the size and shape of the land. For example, an
odd-shaped or odd-sized parcel of land may be appropriate for an office but may provide
limited functionality for industrial loading and delivery.
Included Expense Reimbursement
Identifies that the cost of the associated item is include in the base rent.
Income / Expense Statement 
This gives a detailed account of all income, rents and other income, as well as all
of the expenses associated with the property.
Income Subsidized
Identifies whether any of the income to the property is subsidized; rents that are partly
paid by the government (e.g. Section 8 residential subsidies).
Increase of Base Yr. Expense Reimbursement
Identifies that any cost of the associated item over the base year is paid by the lessee.
The base year is the year upon which a direct expense escalation of rent is based.
Index Rate
Identifies the loan Index Rate that is being quoted.
Individual
A borrowing entity such as a person and may include a borrower plus a co-borrower or
co-borrowers.
Industrial
A general property type or building type classification characterized by its usage for
industrial purposes. Subtypes may include Warehouse Single-Tenant,
Warehouse Multi-Tenant, Manufacturing, Research & Development, Flex Space, Light
Industrial, Heavy Industrial, Other.
Industrial Park Surrounding land Use
Identifies the general land use of the surrounding and/or adjacent properties in
comparison to the collateral property. An industrial park is a development designed for
specific industrial business types, which provides required appurtenances including
public utilities, streets, railroad sidings, auto parking, and water and sewage facilities.
Industrial Property
A property used for light or heavy manufacturing or warehouse space. Property type also
includes office/warehouse.
Industrial Surrounding land Use
Identifies the general land use of the surrounding and/or adjacent properties in
comparison to the collateral property. Industrial uses include Warehouse Single-Tenant,
Warehouse Multi-Tenant, Manufacturing, Research & Development, Flex Space, Light
Industrial, Heavy Industrial, Other.
Industrial Tenant Type
Characterizes the tenant type based on usage of the leased area; Industrial usage
generally includes most uses involving industrial purposes, such as factories,
manufacturing, research and development.
Industrial w/Office Tenant Type
Characterizes the tenant type based on a combination of uses of the leased area.
Institutional Property
A property used by special institutions, such as a university, hospital or a government
agency. Institutional properties may be similar to other property types; however, they are
designed for a specific purpose and are difficult to adapt to other uses.
Insurance
Identifies the method by which the tenant is responsible for payment or reimbursement of
Insurance.
Interest Accrual Method
The method by which interest is calculated through the loan term; options include Actual
360, Annual 365, 30/360, and Actual/Actual.
Interest Calculation Method
Identifies the interest rate calculation used to determine the loan results. In LoanSizer,
options include 30/360, Actual/360.
Interest Only Strip
When a mortgage interest rate exceeds the interest rate paid on the security backed by
the mortgage, the excess interest is "stripped" and sold as an I/O strip; referred to as I/O
Strip. The "strip" is usually described in the (notional) amount of the original security
classes it was stripped from and then sold for pennies on the dollar basis. These are very
volatile securities. As an example, if several loans prepay earlier than expected there
many not be an interest stream to pay the interest on the "strips".
Interest Paid vs. Interest Impacted
An important clause in the CMBS structure that determines how and when losses are
allocated (e.g. are losses allocated before principal is paid or after principal is paid?).
This clause impacts the yield of the lowest class of certificate holders.
Interest Rate Cap
Limits the interest rate or the interest rate adjustment to a specified maximum. This
protects the borrower from increasing interest rates.
Interest Rate Index
A published interest rate, such as the Prime Rate, LIBOR, Treasury Bill / Treasury Note
rate, 11th District COFI, etc. Lenders use indexes to establish interest rates charged on
mortgages or to compare investment returns. A final note rate typically includes an Index
Yield plus a Spread.
Interest Rate Rounding
The method of rounding the components of or the final note interest rate; the rounding
method returns a rounded interest rate; rounding is typically to the nearest 1/8th of one
percent.
Interest Rate Spread
The number of basis points over a base rate index; the difference between the rate at
which money can be borrowed and the rate at which it is loaned. A final note rate typically
includes an Index Yield plus a Spread.
Interest Rate Type
If the Loan Purpose is Refinance, identifies the interest rate type of the existing mortgage
note.
Janitorial
A line item expense representing the expenses for janitorial and cleaning expenses.
Junior Debt
A mortgage that is subordinate to the claims of a prior lien or mortgage; a second
mortgage.
Joint Venture
Often abbreviated JV, is an entity formed between two or more parties to undertake economic activity together. The parties agree to create a new entity by both contributing equity and they then share in the revenue, expenses and control of the enterprise. The venture can be for one specific project only, or a continuing business relationship.
Land Area
The total land area included with the property; expressed in acres. One acre equals
43,560 square feet.
Last Sale Price
Identifies the sale price or other legal consideration at the last sale of the property.
Laundry Rooms
Identifies the number of laundry facilities located on the property.
Laundry/Vending Income
Income from laundry and/or vending operations on the property.
Lease Assignment
An agreement between the commercial property owner and the lender that assigns lease
payments directly to the lender. Otherwise, lease payments would be to the owner who
would then forward mortgage payments to the lender. In a CMBS, lease payments would
go directly to the servicer. A form of credit enhancement.
Lease Expire
Identifies the date on which the lease ends or expires, excluding any lease options or
other conditions that allow an escape from the lease encumbrance.
Lease Options
Identifies whether any lease renewal options are included in the lease agreement. A
renewal option allows the tenant to extend the lease for one or more prescribed periods
of time and are frequently in short- and long-term leases. Renewal options are binding on
the lessor, but allow the tenant to reach a decision in light of circumstances prevailing at
the time of the renewal. Thus, they are generally considered favorable to the tenant, not
the lessor.
Lease Start
The date on which the lease encumbrance begins; may be the date of physical
occupancy as indicated in the lease.
Leased Area
Identifies the total net leased area of the tenant; the total area encumbered by the lease
agreement as indicated in a lease or lease abstract; expressed as square feet.
Leasehold Improvements
The cost of improvements for a leased property,. often paid by the tenant.
Leasing Commission - New
A fee paid by the property owner or the tenant to a real estate broker or leasing agent for
services rendered; typically paid by a property owner for attracting and securing a new
tenant. Usually calculated as a percentage (1% to 6%) of the entire lease payments, paid
in increments during the lease term.
Leasing Commission - Renewal
A fee paid by the property owner or the tenant to a real estate broker or leasing agent for
services rendered; typically paid by a property owner at the time of a lease renewal.
Usually calculated as a percentage (1% to 6%) of the entire lease payments, paid in
increments during the lease term.
Leasing Commissions
A line item expense that represents a fee(s) paid by the property owner or the tenant to a
real estate broker or leasing agent for services rendered; typically paid by a property
owner for attracting and securing a new tenant. Usually calculated as a percentage (1%
to 6%) of the entire lease payments, paid in increments during the lease term.
Legal Fee
A quoted or estimate fee to cover the cost of the legal services required by the lender to
obtain a mortgage.
Lender Name
The company name of the Lender.
Lender Overrides
Manual positive and/or negative overrides made to the income and/or expenses by the
lender/underwriter; used to normalize or adjust a particular income or expense line item.
In LoanSizer, an Lender Override will override the calculations used to normalize the line
item.
Letter of Interest
A LoanSizer report populated with loan information used by loan originators to provide a
preliminary loan quote or expression of interest to a borrower; also referred to as an
"Expression of Interest."
Level 'A' Deficiency (Healthcare)
Level "A" is a classification, deficiency or violation relating to nursing homes that creates
a condition relating to the operation and maintenance of a nursing home that presents a
substantial probability that death or serious mental or physical harm to a resident may
occur as a result of the deficiency.
Light Industrial
An Industrial property subtype in which the property is occupied by one or more tenants
and the property is utilized for light industrial purposes (e.g. warehouse, light assembly,
public utility plants, wholesale, motor vehicle assembly or repair, heavy equipment
garages, distribution centers, mini-warehouses for storage, etc.).
Light Industrial Surrounding land Use
Identifies the general land use of the surrounding and/or adjacent properties in
comparison to the collateral property. Light Industrial refers to an Industrial property
subtype in which the property is occupied by one or more tenants and the property is
utilized for light industrial purposes (e.g. warehouse, light assembly, public utility plants,
wholesale, motor vehicle assembly or repair, heavy equipment garages, distribution
centers, mini-warehouses for storage, etc.).
Limited or General Partnership
A borrowing entity structured as a partnership in which there is at least one partner who
is passive and limits liability to the amount invested, and at least one partner whose
liability extends beyond monetary investment.
Limited Service - Economy Hotel
A Limited Service Hotel property subtype is typically characterized by standardized
accommodations, little or no extra services available to guests and a discounted price.
Frequently, these properties are part of a limited-service division of a major hotel chain.
They offer a value-conscious alternative to full-service hotels for travelers not needing
restaurants, etc. Limited-service hotels have experienced tremendous growth over the
past 10 years.This would include franchise hotels such as Comfort Inn, Hampton Inns,
Homewood Suites, Holiday Inn Express, La Quinta Motor Inn, Shoney's, Budgetel Inns,
Econo Lodge, Fairfield Inn, Knights Inn, Nendels, Red Carpet Inn, Red Roof Inns, Sleep
Inns, Super 8 Motels, Travelodge, Friendship Inns and Motel 6, in addition to numerous
independent properties in this market.
Limited Service - Extended Stay Hotel
A Limited Service Hotel property subtype is typically characterized by standardized
accommodations, little or no extra services available to guests and a discounted price.
Frequently, these properties are part of a limited-service division of a major hotel chain.
They offer a value-conscious alternative to full-service hotels for travelers not needing
restaurants, etc. Limited-service hotels have experienced tremendous growth over the
past 10 years.Extended stay properties offer basic accommodations catering primarily to
long-term guests (one week or greater). They usually are basic in nature, offer few, if any,
amenities, and are promoted on the basis of price, functionality and convenience. Most
properties of this type offer only one floor plan, usually a kitchenette-type unit, and a
telephone and television in the rooms. The properties also feature a long-term rate
(weekly and/or monthly), and are often utilized by long-term employees in the area,
people relocating to the area, or others needing longer-term accommodations at a
reasonable price. Operating costs tend to be lower with this type of property, due to the
limited services provided, and the semi-residential nature of the property.
Limited Service - Midscale Hotel
A Limited Service Hotel property subtype is typically characterized by standardized
accommodations, little or no extra services available to guests and a discounted price.
Frequently, these properties are part of a limited-service division of a major hotel chain.
They offer a value-conscious alternative to full-service hotels for travelers not needing
restaurants, etc. Limited-service hotels have experienced tremendous growth over the
past 10 years.Mid scale hotels would include hotel types from 250-room airport locations
to 100-room roadside franchise properties. Such properties may include Best Western,
Clarion, Days Inn, Holiday Inn, Howard Johnson, Marriott Courtyard, Park Inn, Quality
Inn, Rodeway Inn and Ramada Inn, as well as quality independent hotels.
LLC
Limited Liability Company; a borrowing entity structured as a company wherein the
restriction of one's potential losses to the amount invested. The absence of personal
liability. Provided to stockholders in a corporation and limited partners of a limited
partnership.
Loading Docks
A platform or platforms at which trucks or trains load or unload cargo.
Loan Amortization
Indicates the requested Loan Amortization (in years); the period of time over which
principal and interest payments are scheduled. For example, a loan with a 10-year term
and a 25-year amortization will have a balloon payment at the end of 10 years.
Loan Assumption
The act of taking over the previous borrower's obligation of a mortgage note.
Assumptions may be advantageous if the terms of the mortgage are advantageous and
they are not changed by the lender when the mortgage is assumed.
Loan Maturity Date
If the Loan Purpose is Refinance, identifies the date on which the existing mortgage note
expires or is called.
Loan Name
Identifies the loan name that is shown on the Main Loan List; an easily recognizable or
descriptive name; typically a street address or property name (e.g. "100 Main Street" or
"Commerce Center Mall").
Loan Term
Indicates the requested Loan Term (in years). The period of time over which the loan is
repaid (e.g. a loan with a 10-year term and a 25-year amortization will have a balloon
payment at the end of 10 years).
Loan-to-Value Ratio
The ratio between the principal amount of the mortgage balance, at origination or
thereafter, to the current value of the underlying real estate collateral; referred to as LTV.
The ratio is commonly expressed to a potential borrower as the percentage of value a
lending institution is willing to finance. The ratio is dynamic and varies by lending
institution, property type, geographic location, property size, among other things.
Lock-Box Provision
The trustee is given control over the gross revenues of the underlying properties in a
CMBS. Property owners only have claim to cash flows net of expenses. Expenses
include debt service, taxes, insurance and other operating expenses.
Lockout
A Lockout is simply a specified period of time during which prepayments are prohibited.
 For example, a typical loan with a balloon in ten years may have a lockout that expires
in 3 years. Any prepayments made will not decrease the amount of interest due during
the lockout period.
Loss to Lease
The difference between the market rental rate for a property and the rent being paid for a
similar property. It is an indicator of the changing market conditions. For example, if a
property was leased for a one-year term at $1,000 per month and currently the market is
getting $1,100 per month on similar properties, the loss to lease is $100 per month. Also
called Free To Lease Difference.
Low Traffic
A count of the number of vehicles moving past a location during a period of time; usually
expressed as "Average Daily Traffic" (ADT) and characterized as High, Medium or Low.
Low-Rise Garden Apts
A Multifamily subtype; a one-, two- or three-story apartment building or development with
5 or more apartments characterized by a garden-like setting and its location in a town or
unincorporated developed area in a close proximity to a city. Suburbs, largely residential,
are often dependent on the city for employment and support services; generally
characterized by low-density development relative to the city; usually one to three story
structures in a suburban or rural-urban fringe development.
Lower Scale Residential Surrounding land Use
Identifies the general land use of the surrounding and/or adjacent properties in
comparison to the collateral property. Lower Scale Retail includes retail properties with a
lower-scale use as compared to the collateral property (e.g. a neighborhood strip center
would be a lower-scale use as compared to a regional mall).
Lower Scale Retail Surrounding land Use
Identifies the general land use of the surrounding and/or adjacent properties in
comparison to the collateral property. Lower Scale Retail refers to retail properties with a
lower-scale use as compared to the collateral property (e.g. a neighborhood strip center
would be a lower-scale use as compared to a regional mall).
Maintenance (Hotel)
An expense line item that represents all expenses for the general repairs and
maintenance of the building including common areas and general upkeep. Includes both
in-house payroll and contracted services. Repairs and maintenance expense includes
payroll, elevator, HVAC, electrical and plumbing, structural/roof, trash removal, and other
repairs and maintenance expense items.
Mall - Regional
A Retail property subtype in which the property is an enclosed shopping center with
multiple retail tenants which draws from a large trade area of 12 or more miles and is
occupied by two or more department stores connected by a group of in-line retail stores;
typical gross building area ranges from 400,000 to 1 million square feet.
Mall - Super Regional
A Retail property subtype in which the property is an enclosed shopping center with
multiple retail tenants which draws from a large trade area of 12 or more miles and is
occupied by four or more anchor tenants; typical gross building area ranges from 750,000
to 2 million square feet and is situated on 85+ acres of land.
Management
Identifies the method by which the tenant is responsible for payment or reimbursement of
Property Management Fees.
Management Fees
A line item expense that represents the sum paid for management services; a variable
operating expense. Management services may be contracted for or provided by the
property owner. Management expenses may include supervision, on-site offices or
apartments for resident managers, telephone service, clerical help, legal or accounting
services, printing and postage, and advertising. Management fees may occasionally be
included among recoverable operating expenses.
Manufacturing
An Industrial property subtype in which the property is occupied by one or more tenants
and the property is utilized for manufacturing purposes.
Market Rent
The amount for which the competitive rental market indicates property should rent. Also
referred to as "economic rent." Generally, contract lease rates are "marked to market" if
contract rent is greater than or less than market rent.
Masonry General Building Exterior
Identifies the general property exterior to be constructed of stone, brick, tile, cement,
concrete or similar materials.
Master Servicer
Required to service mortgage loans collateralizing a CMBS on behalf of, and for the
benefit of, certificate holders. Responsibilities vary according to the servicing agreement.
Common responsibilities include a) collection of mortgage payments and delivery of the
funds to the trustee; b) advancement of any late payments to the trustee; c) provision of
mortgage performance reports to bond holders; and d) transfer of all loans that become
non-performing to the special servicer.
Max Loan Size
Identifies the maximum requested loan amount a member lender is willing to accept from
the LendingApps matching engine; completed by the lender. This entry can be modified
by the lender at any time from the Lender Administration screen.
Max. Amortization
The maximum number of periodic installments (expressed in years) over which
repayment of a mortgage debt is calculated; a portion of each payment consists of a
blend of interest and amortization of principal. For example, if a loan has a 25 year
amortization schedule and a 10 year term, a balloon payment of the outstanding principal
will be due at the end of the tenth year.
Max. Loan to Cost
The ratio between the principal amount of the mortgage balance, at origination or
thereafter, to the current value (or cost of construction if a construction loan) of the
underlying real estate collateral. The ratio is commonly expressed to a potential borrower
as the percentage of value a lending institution is willing to finance. The ratio is dynamic
and varies by lending institution, property type, geographic location, property size, among
other things.
Maximum Loan
Displays the maximum calculated loan based on the net cash flow subject to the
underwriting parameters indicated in the loan file.
Maximum Occupancy (Hotel)
(Hotel only) A guideline that suggests the maximum allowable
annual occupancy percentage, based on the ratio of total occupied rooms to total
available rooms, for the proposed loan. Unless manually adjusted by the Originator or
Lender, Lenders usually use this guideline as the default value to calculate the maximum
room revenue.
Meals Income (Healthcare)
Income from food preparation and/or kitchen operations associated with healthcare
facilities.
Medical Office
An Office property subtype in which the property is occupied by one or more tenants and
the property is utilized for medical office purposes (e.g. physician/dentist offices, medical
laboratory, outpatient clinic, etc.).
Medical Office Surrounding land Use
Identifies the general land use of the surrounding and/or adjacent properties in
comparison to the collateral property. A Medical Office property classification refers to a
property that is occupied by one or more tenants and the property is utilized for medical
office purposes (e.g. physician/dentist offices, medical laboratory, outpatient clinic, etc.).
Medicare/Medicaid (Healthcare)
Income from patient beds occupied by Medicare/Medicaid sponsored healthcare patients.
Medium Traffic
A count of the number of vehicles moving past a location during a period of time; usually
expressed as "Average Daily Traffic" (ADT) and characterized as High, Medium or Low.
Mezzanine Financing
A hybrid of debt and equity financing. Mezzanine financing is typically used to finance the expansion of existing companies, and it is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. It is generally subordinated to debt provided by senior lenders such as banks and venture capital companies.  Since mezzanine financing is usually provided to the borrower very quickly with little due diligence on the part of the lender and little or no collateral on the part of the borrower, this type of financing is aggressively priced with the lender seeking a return in the 20%-30% range.
MHP 3 Star
A 4-Star MHP subtype is typically characterized by attractive accommodations and offers
some amenities and services; generally occupied by a mix of doublewide and singlewide
units in good condition.
MHP 4 Star
A 4-Star MHP subtype is typically characterized by high quality of accommodations,
amenities and services and located in good neighborhoods; occupied primarily by
doublewide homes in good condition, skirted and have concrete patios or raised porches
with commercial steps, along paved streets; if older, these parks may have been
regarded as 5 Star parks at one time.
MHP 5 Star
A 5-Star MHP subtype is typically characterized by excellent and deluxe
accommodations including a wide range of amenities and services; homes are usually
set back from curbed, paved streets, enhanced with sidewalks, streetlights and signs,
and landscaping; well-located in a desirable neighborhood and accessible to retail and
community services; occupied primarily by late model, doublewide and modular homes in
excellent condition; off-street parking is usually available for up to 2 cars per home and
most offer uniform commercial carports.
Mid-Rise Apts
A Multifamily subtype; a four- or more story apartment building or development; typically
elevator-serviced.
Military Housing
A Multifamily subtype; a multifamily or multi-unit dwelling primarily occupied by military
personnel; leases often contain a clause which allows the tenant to terminate the lease
without penalty if and when the tenant is transferred to another location.
Military Housing
Identifies whether the property is occupied by military personnel. In commercial
underwriting, properties that are occupied by military personnel may experience
variations of vacancy and rental income. In multifamily underwriting, clauses may be
included in leases that allow the tenant to terminate the lease without penalty if and when
the tenant is transferred to another location. Demographically, areas exhibiting poor
occupancies, low rents, plant or military base closings, or low sales may result in lower
appraised values.
Minimum DSCR (Suggested)
A guideline that suggests the minimum allowable debt service
coverage ratio (DSCR) for the proposed loan. Lenders base this guideline on
numerous factors including property type, loan amount, proposed loan to value, and
numerous physical, financial and tenancy factors identified in the proposed loan.
Minimum DSCR
Minimum debt service coverage ratio. The minimum ratio of effective annual net
operating income to annual principal and/or interest payments. Also called "debt service
coverage (DSC)" and typically written as 1.25x, where x represents the number of times
the annual debt service must be exceeded to achieve the target DSCR; a constraint to
maximum loan amount. Both Lenders and Investors calculate this ratio to assist them in
determining the likelihood of the property generating enough income to pay the mortgage
payments. From the lender's viewpoint, the higher the ratio, the better.
Minimum Management Fee
A guideline provided by a Lender that suggests the minimum required property
management fee reserve for the proposed loan. Lenders base this guideline on
numerous factors including property type, loan amount, proposed loan to value and debt
service coverage, and numerous physical, financial and tenancy factors identified in the
proposed loan.
Minimum Replacement Reserve
A guideline provided by Lenders that suggest the minimum required replacement
reserves (or capital expenditures) for the proposed loan. A Lender bases this guideline
on numerous factors including property type, loan amount, proposed loan to value and
debt service coverage, and numerous physical, financial and tenancy factors identified in
the proposed loan.. Replacement reserves are various account(s) maintained (typically by
the Lender) to provide funds for anticipated expenditures required to maintain a building.
A reserve account usually is required by a lender in the form of an escrow to pay upcoming
taxes and insurance costs. A replacement reserve is usually an amount set aside from net
operating income to pay for the eventual wearing out of short–lived assets; monthly deposits
that a lender may require a borrower to a reserve in an account, along with principal and
interest payments for future capital improvements of major building systems (e.g. HVAC,
parking lot, carpets, roof, etc.). Replacement reserves are typically calculated on a per unit
 basis (e.g. multifamily - per unit; office, retail, industrial - per square foot; etc.).
Minimum Tenant Improvements/Leasing Commission Costs
A guideline provided by a Lender that suggests the minimum required reserves for
tenant improvement and leasing commission replacement reserves (TILC) for the
proposed loan. Lenders base this guideline on numerous factors including property
type, loan amount, proposed loan to value and debt service coverage, and numerous
physical, financial and tenancy factors identified in the proposed loan. Tenant
 Improvements refers to the expense to physically improve the property to attract
new tenants to new or vacated space which may include new improvements or remodeling.
 May be paid by tenant, lessor, or both. Typically, tenants are provided with a market rate TI
allowance ($/sq. ft.) that the owner will contribute towards improvements. The tenant must
 pay for amounts above the TI allowance desired by the tenant. A Leasing Commission is an
amount, usually a percentage of the total lease transaction, earned by a real estate broker
 or leasing agent for his services. Combined, the annual projected cost of tenant improvements
and leasing commissions (TILC's) are deducted from the net operating income prior to
determining the net cash flow available for debt service coverage.
Minimum Vacancy Reserve
A guideline provided by a Lender that suggests the minimum required vacancy and
collection loss reserve for the proposed loan. Lenders base this guideline on
numerous factors including property type, loan amount, proposed loan to value and debt
service coverage, and numerous physical, financial and tenancy factors identified in the
proposed loan. The vacancy and collection loss rate is the percentage of all units or space that
 is unoccupied, not rented or from which there is no rental income. On a pro-forma income
statement a projected vacancy rate is used to estimate the vacancy allowance (both physical
 and economic), which is deducted from potential gross income to derive effective gross income.
Minimum DSCR Threshold
The Minimum DSC Threshold sets the minimum ratio of effective annual net cash flow to
annual debt service utilized when calculating tenant improvement and leasing
commission costs. This threshold is utilized to analyze projected annual cash flow
deficiencies resulting from TI & LC expenditures over the loan term. Generally, a
minimum threshold margin of 1.10x is desired. Lenders use this ratio to assist them in
determining the likelihood of a negative cash flow event as a result of TI & LC costs
during the term of the loan. See TI/LC Stress DSCR.
Mixed Use
A general property type or building type classification characterized by its multiple uses; a
real estate development that contains two or more different uses all intended to be
harmonious and complementary (e.g. a high-rise building with retail shops on the first two
floors, office space on floors three through ten, apartments on the next ten floors, and a
restaurant on the top floor). In LoanSizer, building types available for mixed-use analysis
include office, retail, industrial, multifamily and healthcare. Hotel and self-storage
properties are analyzed as single-purpose properties.
Mixed Use Surrounding land Use
Identifies the general land use of the surrounding and/or adjacent properties in
comparison to the collateral property. Mixed-use includes properties that contain two or
more different uses all intended to be harmonious and complementary (e.g. a high-rise
building with retail shops on the first two floors, office space on floors three through ten,
apartments on the next ten floors, and a restaurant on the top floor).
Mobile Home Park
A general property type or building type classification characterized by its usage as a
mobile home park. Subtypes mat include MHP 1 Star, MHP 2 Star, MHP 3 Star,
MHP 4 Star, MHP 5 Star, Other.
Mobile Home Units for Sale
Identifies the percentage of mobile home units available for sale on the collateral
property.
Modified Gross
Lease structure under which the landlord and tenant pay different or allocated expenses;
a lease in which the landlord receives stipulated rent and the payment of the property’s
operating expenses are divided between the lessor and lessee via specified terms in the
lease; also called Net-Net (Double Net), depending on the degree to which the tenant or
landlord are responsible for operating costs.
Modified Gross Reimbursement Structure
A lease structure in which the lessor is responsible for a portion of the costs of
maintaining the property; typically, the tenant pays the other percentage of the costs.
Mortgagee
The lender in a mortgage transaction.
The borrower in a mortgage transaction who pledges property as a security for a debt.
Mostly Exterior Guest Corridors
Identifies that most, not all, of the corridor area(s) through which guests gain access to
sleeping rooms are exterior (e.g. walkways that are subject to weather conditions.
Mostly Interior Guest Corridors
Identifies that most, not all, of the corridor area(s) through which guests gain access to
sleeping rooms are interior and enclosed (e.g. walkways that are not subject to weather
conditions).
Mostly Paved - Road Surfaces
Identifies most of the road surfaces as being paved with macadam, concrete, cement or
other similar surfacing.
Multi-family Property
A general property type or building type classification characterized by its usage for
multifamily residential purposes. Subtypes may include Low-Rise Garden
Apartments, Mid-Rise Apartments, High-Rise Apartments, Student Housing, Military
Housing, Townhouse style, Co-op, Other.
Multi-family Property - Class A
Properties are above average in terms of design, construction and finish; command the
highest rental rates; have a superior location in terms of desirability and/or accessibility;
and generally are professionally managed by national or large regional management
companies.
Multi-family Property - Class B
Properties frequently do not possess design and finish reflective of current standards and
preferences; construction is adequate; command average rental rates; generally are well maintained
by national or regional management companies; and unit sizes are usually
larger than current standards.
Multi-family Property - Class C
Properties provide functional housing; exhibit some level of deferred maintenance;
command below average rental rates; usually located in less desirable areas; generally
managed by smaller, local property management companies; tenants provide a less
stable income stream to property owners than Class A and B tenants.
Multifamily
A general property type or building type classification characterized by its usage for
multifamily residential purposes. Subtypes may include Low-Rise Garden
Apartments, Mid-Rise Apartments, High-Rise Apartments, Student Housing, Military
Housing, Townhouse style, Co-op, Other.

 

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236A Sand Hill Cove Rd, Narragansett, RI  02882
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