JG Capital

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Land Area - The total land area included with the property; expressed in acres. One acre equals 43,560 square feet.

Laundry/Vending Income - 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 Options - 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.

Leased Area - 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.

Legal Fee - A quoted or estimate fee to cover the cost of the legal services required by the lender to obtain a mortgage.

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.

Level 'A' Deficiency - 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.

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 - 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 Assumption - 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 - If the Loan Purpose is Refinance, identifies the date on which the existing mortgage note expires or is called.

Loan Purpose - The purpose of the loan request. Options include Purchase, Refinance or Construction.

Loan Term - Identifies the loan term that is being quoted.

Loan Term - 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 - Identifies the requested loan type; options include Fixed or Variable.

Loan-to-Value Ratio - 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 $1,000 per month and currently the market is getting $1,100 per month on similar properties, the loss to lease is $100 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; usually 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.