This is a clause in a loan agreement or bond that puts a borrower in default if they default on another responsibility. Cross-default provisions protect the interest of the lenders and encourage repayment.
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Hangout Risk
The hangout risk, on the other hand, is the risk corresponding to the borrower's inability or ability to repay the loan. The hangout risk is an important consideration in investments with a single tenant, and it is established by...
Commitment
This is a promise, affirmation, or pledge found in an agreement. In real estate, a title commitment is a document that outlines the details about a property.
Floor Area Ratio
FAR for short, this is the ratio of the building's floor area in relation to the size of the land on which the property is located. It is expressed as a decimal number and is calculated by dividing the total area of the building...
Hybrid REIT
This is a REIT that combines the investment procedures of both equity and mortgage REITs.
Cash Out
When refinancing a present mortgage, cash out is the term used when receiving money back.
Development Spread
This measures the value added by taking on the lease-up and construction risk. The greater the development spread is, the more likely the development will be financially feasible. To calculate the development risk, take the...
Industrial-Business
This is a type of industrial development that comprises a group of buildings on a large plot of land.
Environmental Conditions
These are the factors and forces of a physical environment and its surroundings that influence or modify that environment in any way possible.
Development Yield
Also known as a project's yield on cost, development yield is a metric calculating the project's net operating income at stabilization divided by the total project cost. It can be used to evaluate whether or not it's worthwhile...
