-C-

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 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. 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".

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.

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 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 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.

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.”

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 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. 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.

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.

Credit Rated - Identifies whether the tenant is an investment grade tenant with a BBB- rating or higher.

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.

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