The rate (speed) at which vacant space is either leased (to tenants) or sold (to buyers) in the marketplace. This rate is usually expressed in square feet per year, or in the case of multi-family housing, in the number of units occupied per year.
A clause in your mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons, including default or violation of loan covenants. The most common reasons for accelerating a loan are if the borrower defaults on the loan or transfers title to another individual without informing the lender.
Acquisition and Development Loan (A&D Loan)
A loan for the purchase and preparation of raw land for development. Usually a construction loan or land sale is the source of repayment.
Adjustable Rate Mortgage (ARM)
A type of real estate loan in which either the interest rate charged or the length of the loan, or both, can change. This type of loan forces the Borrower to absorb the uncertainty of changes in interest rates during the life of the loan. All ARM loans are tied to some index such as government securities. Also called variable rate mortgages.
The date the interest rate changes on an adjustable-rate mortgage.
The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.
A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.
A shopping center with an anchor tenant.
A well-known commercial retail business such as a national chain store or regional department store (AAA Tenant) strategically placed in a shopping center so as to generate the most customers for all of the stores located in the shopping center.
Annual Loan Constant
The ratio of the annual debt payment on a loan to the original amount borrowed. The loan constant is also referred to as a mortgage constant.
Annual Percentage Rate (APR)
This is not the note rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. It works sort of like this, but not exactly, so only use this as a guideline: deduct the closing costs from your loan amount, then using your actual loan payment, calculate what the interest rate would be on this amount instead of your actual loan amount. You will come up with a number close to the APR. Because you are using the same payment on a smaller amount, the APR is always higher than the actual not rate on your loan.
A demonstrative narrative report of a specific market’s economic condition and an assessment of property value performed by a member of the American Institute of Real Estate Appraisers. The property’s value is derived using three (3) separate methods of valuation including replacement cost approach, sales comparison approach and income approach. For commercial real estate transactions that require an appraisal an M.A.I. certified appraisal is required. See M.A.I.
The increase in the value of a property due to changes in market conditions, inflation, or other causes.
The simultaneous buying and selling of any securities, including mortgages, mortgage backed securities or futures contracts in different market places, for the purpose of realizing a profit from different prices.
The valuation placed on property by a public tax assessor for purposes of taxation.
The placing of a value on property for the purpose of taxation.
A public official who establishes the value of a property for taxation purposes.
Items of value owned by an individual. Assets that can be quickly converted into cash are considered "liquid assets." These include bank accounts, stocks, bonds, mutual funds, and so on. Other assets include real estate, personal property, and debts owed to an individual by others.
When ownership of your mortgage is transferred from one company or individual to another, it is called an assignment.
A mortgage that can be assumed by the buyer when a property is sold. Usually, the borrower must "qualify" in order to assume the loan.
The term applied when a buyer assumes the seller’s mortgage.
A tenant’s formal agreement to be a tenant of a new landlord.
Average Daily Rate (ADR)
The average rate charged by a hotel for one (1) room for one (1) day; arrived at by dividing the actual historical total room revenue by the actual rooms occupied.
It is a way to look at the term of a loan or bond that accounts for principal pay-downs. If a loan is interest only with a full balloon at the end, the average life will equal the maturity. If there is amortization, principal is being paid over the life of the loan, decreasing the balloon payment and the average life. This number is then used to find the treasury that is equal to or greater than the remaining term.