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Commercial real estate capital moves through documents and parties that rarely get explained in plain terms. Here readers learn how sponsors and equity partners shape and test a deal.

Readers can settle practical questions. They can see how debt service coverage differs from debt yield and loan to value, and which ratio a lender presses hardest. They can learn what a private placement memorandum typically contains and how an operating agreement sets the waterfall between common and preferred equity. Family offices can check how a sponsor’s rent roll and trailing financials hold up under review. Capital raisers can match a deal to senior debt or a joint venture. Each answer names the parties and papers involved.

• Banks and regulation
  How banks lend on commercial property, how regulators supervise them and what that means for borrowers.
• Brokerage and capital markets
  How brokers, capital markets advisors and intermediaries find buyers, lenders & equity for a deal.
• Development and entitlements
  How a development moves from land and approvals to financing, construction & lease-up.
• Funds and private equity
  How real estate funds are structured, what they charge and how managers and investors share results.
• Institutional capital
  How pensions, insurers & other large investors allocate to real estate and what they require of managers.
• Lending and credit
  How lenders size, price & structure commercial mortgages, and how borrowers qualify.
• Property sectors
  How each commercial property sector earns income and what lenders check on each one.
• Proptech and operations
  How technology and day to day operations change the numbers a property produces.
• REITs
  How public and private REITs work, how they are valued and how they compare with private funds.
• Securitization
  How commercial mortgages are pooled into bonds, who buys the pieces and what happens in a workout.
• Sponsors and operators
  How operators run properties and platforms, and what investors learn from their structure and track record.
• Valuation and transactions
  How commercial property is valued, how rates and cap rates move prices and how deals close.
• Glossary
  Plain definitions of the terms used in commercial real estate lending, equity, funds & valuation.

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