Glossary of Commercial Real Estate Terms (LA) Leasing Assumptions (RR) Rent Roll (UI) Underwriter Info 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 is 12 basis points higher than that produced by the 30/360 interest calculation. < 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 oddsized 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 guage 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 (Property) If the Loan Purpose is Construction, identifies the anticipated completion date of construction. Appearance (Building) Used to describe the 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. Application Fee (Loan Quote) 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 (Property) 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 (Property) Identifies the date of value on the last appraisal made on the property. Appraisal Fee (Loan Quote) A quoted or estimate fee to cover the cost of the appraisal required by the lender to obtain a mortgage. Appraised Value (Property) Identifies the indicated value or <fair> 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 (Loan Quote) 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 (UI) 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 (RR) 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 (Loan) The name of the borrower/sponsor. Borrower Net Worth (Loan) 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 (Loan) 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 (Building) The overall appearance and marketability as it relates to typical market standards. Options 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 (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 (Building) A dining area where meals are served and consummed. CAM & Utilities (RR) 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. (IE) 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 (UI) A guideline that suggests a capitalization rate for the proposed loan. This guideline is based on numerous factors including property type, loan amount, and numerous physical, financial and tenancy factors identified in the proposed loan. Unless manually adjusted by the Originator or Lender, this guideline is used as the default value to calculate loan results. 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. 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 (Property) 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. Vacant Space (RR) Identifies whether the leased area is vacant. If checked, this leased area will be counted 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 (Building) 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 (Building) 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 (RR) Identifies the method by which the tenant is responsible for payment or reimbursement of Common Area Maintenance (CAM) and utility charges. Community Shopping Center (Building) 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 (Building) 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 (RR) Actual rent as specified in a rental or lease agreement, as opposed to actual market or economic rent. Options include $/Yr., $/SF/Yr., $/SF/Mo. Different 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 (Property) 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 (Building) 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 (Property) 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 (Building) Parking spaces under a roof or other structure designated to the specific property and/or building. Credit Rated (RR) Identifies whether the tenant is an investment grade tenant with a BBB- rating or higher. Credit Report Fee (Loan Quote) 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 (UI) 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 (Property) 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 (Property) If the Loan Purpose is Refinance, identifies the date on which the property was acquired. Date of Last Sale (Property) 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 (UI) 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. Departmental Revenue (IE)(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 (Building) Identifies the type and level of the dock facilities. Options include Dock Height, At Grade, Both or Don't Know. Ease of Ingress/Egress (Property) 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 (IE) 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 (Building) Gated access that secures the entrances and exits to a property. Elevatored Identifies that the building is serviced by an elevator. Engineering Fee (Loan Quote) 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 (Building) A moving stairway consisting of steps attached to a continuously circulating belt. Est. Market Rent (RR) 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 (Building) 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 (Building) Identifies the number of exercise rooms on the property. Existing Loan Balance (Property) If the Loan Purpose is Refinance, identifies the remaining principal loan balance of the existing note to be refinanced. Expense Growth Rate (UI) A guideline that suggests the expense growth rate for the proposed loan. An expense growth rate is used to calculate (or "gross up") projected operating expenses when for the purpose of underwriting the income and expense cash flows; this number reflects the percentage by which the cost of each expense item are projected to increase over the following year. Unless manually adjusted by the Originator or Lender, this guideline is used as the default value to calculate loan results. Expense Reimbursements (IE) 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. (IE) 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 (UI)(Hotel) (Hotel) A guideline that suggests the minimum required reserves for furniture, fixtures and equipment (FF&E) for the proposed loan. This guideline is based 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. (IE)(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 (Loan) 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 (Loan) 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 (UI) Identifies the loan Final Note Rate that is being quoted. Final U/W (IE) see Final Underwritten Final Underwritten (IE) Income and/or expense items that have been adjusted positively or negatively to reflect a projected, or normalized, income stream. Also called "normalized underwritten." Final Underwritten is calculated automatically based on information contained in the loan file. 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 Exp. (IE)(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 (IE)(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 (Building)(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 (IE)(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 (Building)(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 (Building) 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; completed by the lender. 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 (RR) Identifies whether any or all units are furnished. General & Administrative (IE) 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 (Building) 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 (RR) 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 (Property) A lease on undeveloped land or a lease covering the land but not improvements. Usually a net lease. 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 (Property) 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 (IE) 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 (Building)(Hotel) In hotels, the area(s) through which guests gain access to sleeping rooms, 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. 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 (Property) Identifies whether the property has nearby highway access. Generally, nearby when relating to highway or interstate access means within 1 mile. Highway Visibility (Property) 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 (Building) 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. Subtypes include Full Service - Luxury, Full Service - Upscale, Full Service - Midscale, Full Service - Extended Stay, Limited Service - Midscale, Limited Service - Economy, Limited Service - Budget, Limited Service - Extended Stay. HVAC (Building) Heating, ventilation, air conditioning. The percentage coverage of heating, ventilating, and air-conditioning system (HVAC) in a building. Improvement Cost (Property) 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 (Property) 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 Subsidized (Building) 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 (Loan Quote) 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 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 (RR) Identifies the method by which the tenant is responsible for payment or reimbursement of Insurance. Interest Accrual Method (UI) 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 (UI) Identifies the interest rate calculation used to determine the loan results. 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 (UI) 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 (UI) 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. Options include No Rounding and Nearest 1/8th. Interest Rate Spread (UI) 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 (Property) If the Loan Purpose is Refinance, identifies the interest rate type of the existing mortgage note. Janitorial (IE) A line item expense representing the expenses for janitorial and cleaning expenses. Junior Debt (Loan Quote) A mortgage that is subordinate to the claims of a prior lien or mortgage; a second mortgage. Land Area (Property) The total land area included with the property; expressed in acres. One acre equals 43,560 square feet. Last Sale Price (Property) Identifies the sale price or other legal consideration at the last sale of the property. Laundry Rooms (Building) Identifies the number of laundry facilities located on the property. Laundry/Vending Income (IE) 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 (RR) 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 (RR) 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 (RR) The date on which the lease encumbrance begins; may be the date of physical occupancy as indicated in the lease. Leased Area (RR) 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 (LA) 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 either in full upon lease agreement execution or in increments during the lease term. Leasing Commission - Renewal (LA) 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 either in full upon lease renewal or in increments during the lease term. Leasing Commissions (IE) 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 either in full upon lease agreement execution or in increments during the lease term. Legal Fee (Loan Quote) 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. A Lender Override will override the calculations used to normalize the line item. Letter of Interest (Report) A 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 (Building)(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 (Building) 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 Amount (Loan Quote) Identifies the loan amount that is being quoted. Loan Amount (Loan) Identifies the requested loan amount. Loan Assumption (Loan Quote) 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 (Property) If the Loan Purpose is Refinance, identifies the date on which the existing mortgage note expires or is called. Loan Name (Loan) 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. "6308 South Street" or "Triangle Mall"). Loan Purpose (Loan) The purpose of the loan request. Options include Purchase, Refinance or Construction. Loan Term (Loan Quote) Identifies the loan term that is being quoted. Loan Term (UI) 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 Type (UI) Identifies the requested loan type; options include Fixed or Variable. Loan-to-Value Ratio (UI) 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. 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 $2,000 per month and currently the market is getting $2,300 per month on similar properties, the loss to lease is $300 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; often 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 (IE)(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 |