At its core, condo deconversion involves selling an entire condominium building in a single transaction to a real estate investor. The investor then converts the property into rental units.
Forced appreciation in real estate is a strategy used by savvy investors to enhance the value and equity of their properties.
The DCR is calculated by dividing the net operating income (NOI) of a property by its annual debt service requirements.
ADR reflects the average revenue earned per occupied room over a specific time frame. It offers valuable insights into pricing strategies and revenue potential.
The parking ratio is calculated by dividing the total number of parking spaces by the total leasable or rentable square footage, then multiplying by 1,000.
This clause sets a cap on the operating expenses that a landlord covers. Usually, the cap is based on expenses from a predetermined base year.
An encumbrance is any claim or restriction on a property that affects the owner's ability to fully control or sell it.
Deeds are legal documents that transfer ownership of property. Each provides varying levels of protection and assurance to the parties involved.
A marketable title is one that is clear of significant encumbrances, making it acceptable to a reasonable buyer without fearing future legal claims against the property.
