Glossary of commercial 
real estate terms

A legal and marketing book that WDIP creates to send to potential investors when WDIP is raising a fund. It details the investment strategy and provides an overview of the manager and track record, terms of the fund, and risks associated with investing in the fund.

A financial projection in commercial real estate that outlines expected income, expenses, and cash flow for a property, helping investors evaluate its potential profitability.

• Rental assistance is tied to specific properties or developments.
• Assistance is provided directly to the property owner or landlord.
• Eligible units within the property are designated for low-income individuals or families, usually earning no more than 30% of AMI.
• Rent is typically set at an affordable level based on the tenant’s income, with a portion subsidized by HUD. Rent is typically set at a market level based on submarket rent surveys. The tenant pays a calculated portion of their income, and the delta to the calculated rent is subsidized by HUD.
• Tenants must live in the designated units to receive the rental assistance.
• If ownership can demonstrate a good faith effort has been made to lease a vacant HAP unit, ownership may request reimbursement from HUD for the lost income.

Oversight of residential, commercial, and industrial properties, including maintenance and day-to-day operations.

When a property reaches a sustainable occupancy level (typically 90%+) and achieves target rent performance, signaling the end of the lease-up phase.

Technology solutions aimed at improving real estate operations, financing, and transactions.

An acquisition accounting process of assigning a fair value to all of the acquired assets and liabilities assumed by the target company.

A Freddie Mac product which is a mortgage-backed security issued by Freddie that is backed by collateral not originally underwritten by Freddie.

A location within an economically distressed community. These investments may be eligible for tax deferment or preferential tax treatment.

A company that owns, operates, or finances income-producing real estate and allows investors to earn returns through property investments without directly owning or managing the properties.

A nonprofit association addressing national policy issues that affect the commercial real estate industry.

A partnership model pooling funds from multiple investors to acquire or develop real estate.

A type of loan where the lender can pursue assets beyond the loan’s collateral if the borrower defaults. If a borrower defaults on a loan and the collateral used to secure the loan is not enough to cover the total that is still owed to the lender at the time, then the lender can have the right to seek additional personal collateral from the borrower to cover the difference.

Replacing an existing mortgage or loan with a new loan, often to take advantage of better interest rates, more favorable terms, to get cash out of an existing loan or when existing debt matures.

An initiative of the U.S. Department of Housing and Urban Development (HUD) that seeks to preserve and improve certain kinds of affordable housing subsidized by HUD. RAD can be financed with HUD, GSE, or other lenders.

A snapshot of a property’s current income, as reflected in signed and valid leases.

A valuation method estimating the cost to replace a property with a similar one of equal utility.

The remaining value of land after subtracting development and construction costs from the total project value.

Commercially zoned property used solely for the purpose of selling products. Examples include retail stores, malls, and shopping centers.

A process where sellers prepare for buyer inquiries by proactively identifying and addressing property issues.

The return on an investment after accounting for the risks involved, used to compare investment options.

The additional return investors require for taking on higher-risk investments.

Data tracking changes in property and violent crime rates in a neighborhood over time to inform decisions.

A transaction where a property owner sells their real estate to an investor and simultaneously leases it back, allowing the seller to free up capital while retaining operational control of the property.

Recent transaction data on similar properties used to estimate a property’s value and assess potential.