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What are hotel management agreements?

Under a hotel management agreement (HMA), a hotel chain or independent management company operates a hotel business on behalf of the business owner for a fee.  It is typically heav…


What are fixtures?

A fixture is originally an item of personal property that has become permanently affixed or attached to real estate such that it is considered to be an integral part of the propert…


What are facilities services?

Facility services are those services organized and rendered by facilities managers that focus on the buildings and the property infrastructure that support the core business of the…


What are crowdlending platforms?

Any credit activity facilitated by an online electronic platform that matches loans with lender interest is variably called “crowdlending”, “loan-based crowdfunding”, “P2P lending”…


What are CRE syndicated and club lending?

Syndicated lending is multilateral lending that is originated, arranged and structured by one or more commercial or investment banks and marketed to a group (“syndicate”) of underw…


What are CRE loan underwriting criteria?

For commercial real estate loans, the income-generating capacity of the property to support the loan must be carefully analyzed and fully understand.  The underwriting of CRE loans…


What are commercial real estate mortgages?

Real property is permanent, nonmovable property, such as buildings, land and permanent improvements to land, including the interests, benefits and rights inherent in the ownership…


What are building codes?

A building code is the set of rules that specifies the standards for buildings and other structures within a jurisdiction as established by the responsible government authority.  A…


How is the operator involved prior to hotel opening?

The business case is used by a property developer to solicit interest from prospective project participants – lenders, operators and investors.  The decision to participate in hote…


How is sustainable development measured?

Development generally has a significant environmental, social or economic impact on all stakeholders.  Various tools are used to measure the impacts for project participants as wel…


How is residential real estate classified?

A single-family residence (SFR) is a free-standing residential structure consisting of one unit that is usually occupied by one household or family.  Most single-family homes are b…


How is real estate investment finance subordinated?

Real estate investment finance commonly uses structural subordination (senior/mezzanine structure), where each obligor is increasingly removed from the properties. A single-currenc…


How is real estate classified?

There is no industry standard for classifying property and sub-property types.  The two leading organizations in the US real estate investment industry – the National Council of Re…


How is project sustainable feasibility assessed?

Developers adopt sustainability strategies to identify opportunities to benefit from improved environmental, social and governance (ESG) performance.  ESG analyses include financia…


How is commercial real estate investment financing structured?

The LMA REF Document is commonly used for investing in commercial real estate in the UK and other European markets.  It serves as the standard for bilateral and syndicated transact…


How is commercial real estate investment finance secured?

Credit assessment of real estate investment facilities is based primarily on the loan-to-value of the properties and the net operating income that the properties generate. Special…


How is commercial real estate financed?

Commercial real estate finance is provided by banks and other investors to finance the development of property and the investment in developed property, to refinance and restructur…


How is commercial real estate classified?

Commercial real estate can be classified in various ways, according to its purpose, the quality of leased space, nature of multifamily structure or investment purpose.  CRE can als…


How is a project’s feasibility assessed?

The financial feasibility study (FFS) determines if or confirms that a project is potentially profitable, it including financial and scenario analysis and an investment appraisal. …


How are real estate leases regulated?

Residential real estate and rental agreements are generally governed under a separate body of statutory law to commercial leases.  Landlord-tenant residential statutes attempt to p…


How are property managers commonly compensated?

The most common business models by which property managers are paid are: Percentage of rent – The most commonly used model in the residential market where the property manager leas…


How are project opportunities defined?

The first step in the property development process is opportunity definition.  This is when potentially rewarding alternative concepts are identified and explored, followed by sele…


How are development projects justified?

The business case justifies a project’s undertaking for the project’s stakeholders.  Business justification is usually based on the estimated cost of development and implementation…


How are commercial real estate leases commonly structured?

A commercial real estate lease agreement is a contract to rent or lease commercial real estate.  A commercial real estate lease agreement requires negotiation of the length of tena…


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