Commercial Mortgage Glossary


A | B | C | D | E

A
AAA Tenant
This refers to tenant with a top credit rating. This type of tenant is often critical to a developer's ability to arrange both construction and permanent mortgage financing for a major commercial project, such as a shopping center or office building. The more AAA Tenants you have, percentage-wise, the better your commercial loan rate will be.
B[top]
Balloon Mortgage
Loan that features artificially low payments for a while-usually 3 to 5 years, with a large lump sum payment due at the end of the term. In mortgages, these loans feature level monthly payments that will fully amortize it over a specified period, but then there's a balloon payment that's due at an earlier time. Balloon mortgages are typically used by investors for property they expect to hold for only 3-5 years. When homeowners use them, they plan to refinance when the balloon comes due.
C[top]
CAM
Common Area Maintenance. Charges for maintaining the common areas of a building, apartment complex, or condo development. Usually assessed monthly, quarterly, or annually.
D[top]
Debt Service
Payments made on a commercial loan or real estate loan. Used to compute cash flow-debt service is subtracted from rents received from real estate investment property.
E[top]
Earnest Money
A sum of money or other consideration give by a prospective purchaser to the seller as evidence of good faith along with an offer to purchase rights in real property. Often non-refundable, or with strict conditions on refunds.
 

Contact Caffrey & Company

11225 College Blvd., Suite 125
Overland Park, KS 66210
Telephone: (913) 402-7077
Mike@Caffreyloans.com

 

Current Rates (08/16/2017)

  • Apartments 4.18%
  • Mobile Home Park 4.18%
  • Anchored Retail 4.41%
  • Non-Anchored Center 4.71%
  • Single Tenant Retail 4.31%
  • Office 4.71%
  • Industrial 4.36%
  • Self-Storage 4.51%
  • Medical Office 4.26%
  • Hotel 4.61%
  • Owner Occupied 4.26%
  • Land 6.76%
  • Other 5.01%

Rates are based on a $2 million loan, 25 year amortization, 10 year fixed rate term. For apartment complexes, a 30 year amortization is available.

 

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Sample Transactions

Casa Royal Apartments
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$995,000

 

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