BLDGDeck Glossary

A condominium is a form of ownership where each unit is individually owned as real property, while common areas are owned collectively by all unit owners through an association.

A condop is a colloquial term for a residential cooperative located within a mixed-use condominium, giving the co-op board condominium-like flexibility for sublets and transfers.

A housing cooperative is a corporation that owns a building; residents own shares in the corporation and hold a proprietary lease for a specific unit rather than owning real property directly.

An HOA is a nonprofit entity that governs a planned community or subdivision, enforcing covenants and maintaining shared amenities funded by owner assessments.

The capitalization rate is a property's NOI divided by its market value or purchase price, expressed as a percentage, used to compare unlevered yields across properties.

Cash-on-cash return is annual pre-tax cash flow divided by the total cash invested, measuring the yield on the equity actually deployed in a deal.

The debt service coverage ratio is NOI divided by annual debt service (principal and interest), showing how many times operating income covers loan payments.

Loan-to-Value (LTV) is the ratio of loan balance to appraised property value, expressed as a percentage, used by lenders to size debt against collateral.

Net Operating Income (NOI) is a property's annual income from operations after operating expenses but before debt service, income taxes, depreciation, and capital expenditures.

Amortization is the scheduled repayment of a loan's principal over time through periodic payments, distinct from the loan's overall term.

A balloon payment is a large lump-sum principal payment due at the maturity of a loan that amortizes over a longer schedule than its term.

An interest-only period is a portion of a loan term during which the borrower pays only interest, without any scheduled principal amortization.

A prepayment penalty is a fee a borrower must pay to retire a loan before its scheduled maturity, protecting the lender's expected yield.

A concession is a temporary reduction in rent or added benefit (such as free months or a work allowance) offered to attract or retain a tenant.

In a gross lease the landlord pays most operating expenses (taxes, insurance, maintenance) out of the base rent, so the tenant pays a single all-inclusive amount.

A rent roll is a document listing every rentable unit in a property with current tenants, rent amounts, lease dates, and unit characteristics.

A triple net (NNN) lease requires the tenant to pay base rent plus the property's three main operating cost categories: real estate taxes, insurance, and maintenance.

The vacancy rate is the percentage of rentable units or square footage that is unoccupied at a point in time.

J-51 is a New York City property tax exemption and abatement program that rewards renovation of eligible residential buildings and can trigger temporary rent stabilization for benefiting units.

A Major Capital Improvement (MCI) is a building-wide capital project that qualifies for a rent-stabilized rent increase, subject to HCR approval and post-HSTPA caps.

A preferential rent is a rent charged to a rent-stabilized tenant that is below the legal registered rent, offered by the owner to attract or retain the tenant.

Rent stabilization is a New York regulatory regime limiting annual rent increases and providing lease renewal rights for eligible apartments, mostly in buildings of 6+ units built before 1974.

A Certificate of Occupancy is a document issued by a local building department stating a building's legal use, occupancy classification, and any special conditions.

A DOB violation is a citation from the NYC Department of Buildings for construction, mechanical, or facade code non-compliance.

A HPD violation is a citation issued by the NYC Department of Housing Preservation and Development for a housing maintenance code condition in a residential building.

Local Law 11 (formally the Facade Inspection Safety Program) requires periodic professional inspection and reporting on facades of NYC buildings taller than six stories.

An estoppel certificate is a signed statement from a tenant confirming key lease terms, rent status, deposits, and any landlord defaults, delivered to a buyer or lender.

A Phase I Environmental Site Assessment is a non-invasive investigation of a property's environmental condition to identify recognized environmental conditions (RECs).

A property survey is a drawing prepared by a licensed surveyor showing the boundaries, structures, encroachments, easements, and rights-of-way affecting a parcel of land.

A title report is a summary from a title insurance company describing the current owner of record and any liens, easements, or other encumbrances affecting a property's title.

A boiler is a central heating system component that heats water or generates steam distributed through pipes and radiators to warm a building.

HVAC (Heating, Ventilation, and Air Conditioning) refers to the mechanical systems that control indoor temperature, humidity, and air quality.

The roof is the building's top weather-protective assembly, typically composed of structural decking, insulation, waterproofing membrane, and flashings.

Capital expenditures are investments in long-lived building components (roof, boiler, elevator) that extend useful life or add value, distinct from routine operating expenses.

A reserve study is a professional analysis that inventories a property's capital components, estimates their remaining useful lives, and projects required reserve contributions.

A special assessment is a one-time or multi-installment charge levied by a condo or HOA on owners to fund a project that cannot be covered by regular reserves.

Internal Rate of Return (IRR) is the discount rate that makes the net present value of a series of cash flows equal to zero, expressed as an annualized percentage.

A pro forma is a forward-looking financial statement projecting a property's revenues, expenses, financing, and returns over a defined holding period.

Sensitivity analysis measures how projected outcomes (e.g., IRR, DSCR, cash flow) change as underlying assumptions such as rent growth, vacancy, or cap rates vary.

In real estate, underwriting is the process of analyzing a property's income, expenses, market, and risks to determine value, loan sizing, or investment viability.

The closing is the meeting or process where a real estate transaction is completed, funds are transferred, and title passes from seller to buyer.

Earnest money is a deposit the buyer provides at contract signing to demonstrate commitment and secure the property while diligence and financing proceed.

A purchase and sale contract is the binding agreement between buyer and seller that sets price, deposit, contingencies, closing date, and representations.

A board of managers is the elected governing body of a condominium association, responsible for maintaining common elements, enforcing bylaws, and managing finances.

Bylaws are the operational rules of a condo or co-op corporation, governing meetings, voting, board composition, and financial procedures.

A proprietary lease is the contract between a cooperative corporation and a shareholder that grants exclusive possession of a specific apartment.

Assessed value is the value assigned to a property by a local tax assessor for purposes of computing property taxes, often distinct from market value.

The mansion tax is a New York State transfer tax on residential purchases at or above $1,000,000, paid by the buyer at closing.

Real estate transfer taxes are state and local taxes imposed on the transfer of property, typically calculated on the sale price and paid by the seller.

A tax abatement is a reduction or exemption from property taxes granted by a government to encourage specific activities such as renovation or affordable housing.

A deck in BldgDeck is a project workspace for a specific building or transaction that holds documents, analyses, review items, and reports.

A decision snapshot is an immutable record of a deck's key inputs, scenarios, and calculations captured at a point in time to support formal decisions.

A review packet is a Kanban-style workspace within a deck for organizing review items, comments, and assignments related to a specific workflow or transaction.