JG Capital

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-M-

Maintenance - An expense line item that represents all expenses for the general repairs and maintenance of the building including common areas and general upkeep. Includes both in-house payroll and contracted services. Repairs and maintenance expense includes payroll, elevator, HVAC, electrical and plumbing, structural/roof, trash removal, and other repairs and maintenance expense items.

Mall - Regional - A Retail property subtype in which the property is an enclosed shopping center with multiple retail tenants which draws from a large trade area of 12 or more miles and is occupied by two or more department stores connected by a group of in-line retail stores; typical gross building area ranges from 400,000 to 1 million square feet.

Mall - Super Regional - A Retail property subtype in which the property is an enclosed shopping center with multiple retail tenants which draws from a large trade area of 12 or more miles and is occupied by four or more anchor tenants; typical gross building area ranges from 750,000 to 2 million square feet and is situated on 85+ acres of land.

Management Fees - A line item expense that represents the sum paid for management services; a variable operating expense. Management services may be contracted for or provided by the property owner. Management expenses may include supervision, on-site offices or apartments for resident managers, telephone service, clerical help, legal or accounting services, printing and postage, and advertising. Management fees may occasionally be included among recoverable operating expenses.

Manufacturing - An Industrial property subtype in which the property is occupied by one or more tenants and the property is utilized for manufacturing purposes.

Market Rent - The amount for which the competitive rental market indicates property should rent. Also referred to as "economic rent." Generally, contract lease rates are "marked to market" if contract rent is greater than or less than market rent.

Masonry General Building Exterior - Identifies the general property exterior to be constructed of stone, brick, tile, cement, concrete or similar materials.

Master Servicer - Required to service mortgage loans collateralizing a CMBS on behalf of, and for the benefit of, certificate holders. Responsibilities vary according to the servicing agreement. Common responsibilities include a) collection of mortgage payments and delivery of the funds to the trustee; b) advancement of any late payments to the trustee; c) provision of mortgage performance reports to bond holders; and d) transfer of all loans that become non-performing to the special servicer.

Max. Amortization - The maximum number of periodic installments (expressed in years) over which repayment of a mortgage debt is calculated; a portion of each payment consists of a blend of interest and amortization of principal. For example, if a loan has a 25 year amortization schedule and a 10 year term, a balloon payment of the outstanding principal will be due at the end of the tenth year.

Max. Loan to Cost - The ratio between the principal amount of the mortgage balance, at origination or thereafter, to the current value (or cost of construction if a construction loan) of the underlying real estate collateral. 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.

Maximum Occupancy - (Hotel only) A guideline that suggests the maximum allowable annual occupancy percentage, based on the ratio of total occupied rooms to total available rooms, for the proposed loan.
Medical Office - An Office property subtype in which the property is occupied by one or more tenants and the property is utilized for medical office purposes (e.g. physician/dentist offices, medical laboratory, outpatient clinic, etc.).

Medicare/Medicaid - Income from patient beds occupied by Medicare/Medicaid sponsored healthcare patients.

Medium 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.

Meeting Rooms - In hotels, meeting rooms are designated rooms where private functions or events are held.

Mid-Rise Apts - A Multifamily subtype; a four- or more story apartment building or development; typically elevator-serviced.

Military Housing - A Multifamily subtype; a multifamily or multi-unit dwelling primarily occupied by military personnel; leases often contain a clause which allows the tenant to terminate the lease without penalty if and when the tenant is transferred to another location.

Military Housing - Identifies whether the property is occupied by military personnel. In commercial underwriting, properties that are occupied by military personnel may experience variations of vacancy and rental income. 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. Demographically, areas exhibiting poor occupancies, low rents, plant or military base closings, or low sales may result in lower appraised values.

Min Loan Size - Identifies the minimum requested loan amount a member lender is willing to accept.

Min. DSCR - Identifies the minimum debt service coverage ratio (DSCR) a member lender is willing to accept.

Min. DSCR - A guideline that suggests the minimum allowable debt service coverage ratio (DSCR) for the proposed loan. This guideline is based on numerous factors including property type, loan amount, proposed loan to value, and numerous physical, financial and tenancy factors identified in the proposed loan.

Min. DSCR - Minimum debt service coverage ratio. The minimum ratio of effective annual net operating income to annual principal and/or interest payments. Also called "debt service coverage (DSC)" and typically written as 1.25x, where x represents the number of times the annual debt service must be exceeded to achieve the target DSCR; a constraint to maximum loan amount. Both Lenders and Investors calculate this ratio to assist them in determining the likelihood of the property generating enough income to pay the mortgage payments. From the lender's viewpoint, the higher the ratio, the better.

Min. Management Fee - A guideline that suggests the minimum required property management fee reserve for the proposed loan. This guideline is based on numerous factors including property type, loan amount, proposed loan to value and debt service coverage, and numerous physical, financial and tenancy factors identified in the proposed loan.

Min. Occupancy - Identifies the minimum physical property occupancy a member lender is willing to accept.

Min. Repl. Res. - A guideline that suggests the minimum required replacement reserves (or capital expenditures) for the proposed loan. This guideline is based on numerous factors including property type, loan amount, proposed loan to value and debt service coverage, and numerous physical, financial and tenancy factors identified in the proposed loan. Replacement reserves are various account(s) maintained (typically by the Lender) to provide funds for anticipated expenditures required to maintain a building. A reserve account usually is required by a lender in the form of an escrow to pay upcoming taxes and insurance costs. A replacement reserve is usually an amount set aside from net operating income to pay for the eventual wearing out of short–lived assets; monthly deposits that a lender may require a borrower to a reserve in an account, along with principal and interest payments for 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.).

Min. TI/LC Costs - A guideline that suggests the minimum required reserves for tenant improvement and leasing commission replacement reserves (TILC) for the proposed loan. This guideline is based on numerous factors including property type, loan amount, proposed loan to value and debt service coverage, and numerous physical, financial and tenancy factors identified in the proposed loan. Tenant Improvements refers to the expense to physically improve the property to attract new tenants to new or vacated space which may include new improvements or remodeling. May be paid by tenant, lessor, or both. Typically, tenants are provided with a market rate TI allowance ($/sq. ft.) that the owner will contribute towards improvements. The tenant must pay for amounts above the TI allowance desired by the tenant. A Leasing Commission is an amount, usually a percentage of the total lease transaction, earned by a real estate broker or leasing agent for his services. Combined, the annual projected cost of tenant improvements and leasing commissions (TILC's) are deducted from the net operating income prior to determining the net cash flow available for debt service coverage.

Min. Vacancy Reserve - A guideline that suggests the minimum required vacancy and collection loss reserve for the proposed loan. This guideline is based on numerous factors including property type, loan amount, proposed loan to value and debt service coverage, and numerous physical, financial and tenancy factors identified in the proposed loan. The vacancy and collection loss rate is the percentage of all units or space that is unoccupied, not rented or from which there is no rental income. On a pro-forma income statement a projected vacancy rate is used to estimate the vacancy allowance (both physical and economic), which is deducted from potential gross income to derive effective gross income.

Minimum DSCR Threshold - The Minimum DSC Threshold sets the minimum ratio of effective annual net cash flow to annual debt service utilized when calculating tenant improvement and leasing commission costs. This threshold is utilized to analyze projected annual cash flow deficiencies resulting from TI & LC expenditures over the loan term. Generally, a minimum threshold margin of 1.10x is desired. Lenders use this ratio to assist them in determining the likelihood of a negative cash flow event as a result of TI & LC costs during the term of the loan. See TI/LC Stress DSCR.

Mixed Use - A general property type or building type classification characterized by its multiple uses; a real estate development that contains two or more different uses all intended to be harmonious and complementary (e.g. a high-rise building with retail shops on the first two floors, office space on floors three through ten, apartments on the next ten floors, and a restaurant on the top floor). Building types available for mixed-use analysis include office, retail, industrial, multifamily and healthcare. Hotel and self-storage properties are analyzed as single-purpose properties.

Mixed Use Surrounding land Use - Identifies the general land use of the surrounding and/or adjacent properties in comparison to the collateral property. Mixed-use includes properties that contain two or more different uses all intended to be harmonious and complementary (e.g. a high-rise building with retail shops on the first two floors, office space on floors three through ten, apartments on the next ten floors, and a restaurant on the top floor).

Mobile Home Park - A general property type or building type classification characterized by its usage as a mobile home park. Subtypes include MHP 1 Star, MHP 2 Star, MHP 3 Star, MHP 4 Star, MHP 5 Star, Other.

Mobile Home Units for Sale - Identifies the percentage of mobile home units available for sale on the collateral property.

Mod. Gross - Lease structure under which the landlord and tenant pay different or allocated expenses; a lease in which the landlord receives stipulated rent and the payment of the property’s operating expenses are divided between the lessor and lessee via specified terms in the lease; also called Net-Net (Double Net), depending on the degree to which the tenant or landlord are responsible for operating costs.

Mod. Gross Reimbursement Structure - A lease structure in which the lessor is responsible for a portion of the costs of maintaining the property; typically, the tenant pays the other percentage of the costs.

Mortgagee - The lender in a mortgage transaction.

Mortgagor - The borrower in a mortgage transaction who pledges property as a security for a debt.

Multi-family Property - Class A - Properties 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; and generally are professionally managed by national or large regional management companies.

Multi-family Property - Class B - Properties 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; and unit sizes are usually larger than current standards.

Multi-family Property - Class C - Properties provide functional housing; 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.

Multifamily - A general property type or building type classification characterized by its usage for multifamily residential purposes. Subtypes include Low-Rise Garden Apartments, Mid-Rise Apartments, High-Rise Apartments, Student Housing, Military Housing, Townhouse style, Co-op, Other.