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Real Estate Financial Modeling Accelerator (Updated October 2024)

Prior to launching the Accelerator program, Michael and I fielded email after email requesting a more structured real estate financial modeling training program on the site. Over the years, we've covered hundreds of real estate modeling…

Continuing Care Retirement Communities (CCRC’s)

A senior living community that caters to a broad category of needs including independent and assisted living, and permanent skilled nursing care. CRC’s (also known as “life plan” communities) typically have high occupancy levels as they…

Construction-Perm Loan

Also referred to as a "Rollover Loan," a construction-perm loan is a loan that starts off as a construction loan and immediately converts into permanent debt financing once construction of the project is finalized and the property is stabilized. Putting…

Core – (investment strategy)

A real estate investment strategy categorized by low risk and commensurately low, stable returns. Core investment strategies typically involve longer hold periods, lower levels of leverage, and higher quality assets. Core investments are generally…

Contract Rent

Sometimes referred to as In-Place Rent, Contract Rent is the rent being charged/collected on existing leases at a property. In contrast to Market Rent, contract rent is not based on market conditions but rather is based on the lease contract…

Construction Financing

A short-term loan, typically with a floating interest rate, issued by a lender to finance the construction of a real estate project. The loan is paid out to the borrower in draws as construction progresses. After construction is complete…

Convenience or Strip Center

This retail subtype is characterized by having a row of stores, with on-site parking often found in the front of the stores. Open canopies may be used to connect store fronts of the tenants at the center. Average size may be 10,000 - 15,000…

Contingency Cost

An estimated amount set aside by the developer and/or the contractor in order to account for any unknown risks (added and unexpected costs) associated with the project. These costs are designed to cover unforeseen expenses which are not precisely…

Community Center (“Large Neighborhood Center”)

A community center is a retail subtype distinguished for its convenience-oriented offerings and general merchandise, wide range of clothing stores, and a higher variety of goods than Neighborhood Centers. Off-price retailers, supermarkets, and…

Cold Shell

Any building/rentable area that consists only of a bare, unimproved shell i.e. no interior finishes, HVAC, plumbing, lighting, elevators etc. Putting 'Cold Shell' in Context Liberty Urban Development LLC, a seasoned real estate developer,…

Co-tenancy Clause

Co-tenancy clauses appear in retail leases and generally grant the tenant reduced rent, lease termination rights, or other privileges if other tenants, typically anchor tenants, vacate in the shared retail center (e.g. a shopping mall or grocery-anchored…

Clawback Provision

A provision included in certain real estate partnership agreements, whereby a special distribution tier is included in the equity waterfall that allows for the limited partner (LP) to “clawback” cash flow previously distributed to the general…

Certified Commercial Investment Member

A commercial real estate designation issued by the CCIM Institute. The abbreviation CCIM stands for Certified Commercial Investment Member. To earn the CCIM designation, candidates must complete an education component, demonstrate experience…

Capital Expenditure

In real estate, an expenditure with a useful life greater than a year. Referred to colloquially as CapEx, Capital Expenditures are depreciated over their useful life (e.g. a $100,000 expenditure with 10-year useful life = $10,000 depreciation…

Cap Rate

The Cap Rate, or Capitalization Rate, is the percentage derived by dividing a stabilized asset’s annual Net Operating Income (NOI) by its market value. The Cap Rate is a commonly used metric in commercial real estate to estimate the value…

Civil Engineer

Civil engineers are responsible for supervising the design and construction of multiple types of infrastructure, including roads, sewage treatment systems, bridges, waterways and multiple other projects. Civil engineers must ensure that a project…