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NAREIT (National Association of Real Estate Investment Trusts)
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The national, not-for-profit trade organization that represents the real estate investment trust industry
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NCREIF (National Council of Real Estate Investment Fiduciaries)
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An association of real estate professionals who serve on working committees, sponsor research articles, seminars and symposiums, and produce the NCREIF Property Index
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NCREIF Property Index (NPI)
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The index reports quarterly and annual returns consisting of income and appreciation components. The index is based on data collected from the voting members of NCREIF. Specific property-type subindices include apartment, office, retail, industrial and hotel; regional subindices include West, East, South and Midwest.
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Negative amortization
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The accrual feature found in numerous participating debt structures that allows an investor to pay, for an initial period of time, an interest rate below the contract rate stated in loan documents.
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Negative amortization
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Occurs when a borrower's monthly payment is too small to cover both the principal and interest of a loan, so the outstanding balance of the loan actually grows larger with each payment. Many adjustable rate mortgages are susceptible to this.
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NEGATIVE PLEDGE
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A “Negative Pledge” co-op loan is a loan which exceeds the financing limit permitted or recognized by a co-op corporation. Because the co-op board does not approve or recognize any portion of the loan which exceeds the board’s financing limit, the lender’s rights, in the event of a default, are severely limited with respect to the unrecognized portion of the loan. Essentially, the bank’s rights against the stock and proprietary lease, in the event of a default, are subordinate to the co-op corporation’s rights to collect back maintenance and control the sale of the apartment. Consequently, only the most sophisticated banks are able to analyze and underwrite these negative pledge loans…for very well qualified borrowers.
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Net asset value (NAV)
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The value of an individual asset or portfolio of real estate properties net of leveraging or joint venture interests
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Net asset value per share
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The current value of a REIT's assets divided by shares outstanding
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Net assets
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Total assets less total liabilities on a market-value basis
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Net cash flow
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Generally determined by net income plus depreciation less principal payments on long-term mortgages
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Net cash flow
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Income from an investment property after expenses such as principal, interest, taxes and insurance are subtracted.
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Net investment in real estate
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Gross investment in real estate less the outstanding debt balance
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Net investment income
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The income or loss of a portfolio or entity resulting after deducting all expenses, including portfolio and asset management fees, but before realized and unrealized gains and losses on investments
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Net operating income (NOI)
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A before-tax computation of gross revenue less operating expenses and an allowance for anticipated vacancy. It is a key indicator of financial strength.
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Net present value (NPV)
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Net present value usually is employed to evaluate the relative merits of two or more investment alternatives. It is calculated as the sum of the total present value of incremental future cash flows plus the present value of estimated proceeds from sale. Whenever the net present value is greater than zero, an investment opportunity generally is considered to have merit.
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Net purchase price
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Gross purchase price less associated debt financing
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Net real estate investment value
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The market value of all real estate less property-level debt
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Net returns
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Returns to investors net of fees to advisers or managers
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Net sales proceeds
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Proceeds from the sale of an asset or part of an asset less brokerage commissions, closing costs and market expenses
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Net square footage
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The space required for a function or staff position
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Net worth
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The worth of a person or company based on the difference between total assets and liabilities.
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New Windows
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When a building replaces its windows. The monies for this type of capital expenditure comes from either the building's reserve fund, a building wide assessment or a maintenance increase. A building will change its windows for a variety of reasons. These include noise abatement, aesthetics, and the ability to keep out silt from the city traffic.
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No Board Approval
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This terminology can refer to two situations: The first is when a prospective purchaser of an apartment does not have to go through the scrutiny of a board approval process when purchasing a co-operative apartment. The second situation is when a prospective renter does not have to go through the board approval process when renting an apartment from a co-operative owner.
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No-cash-out refinance
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When the amount of the new mortgage covers the remaining balance of the first loan plus closing costs and any liens, and yields no more than 1 percent of the new loan's principal in cash.
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No-documentation loan
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A loan application that does not require verification of income or assets and is generally based on a combination of strong credit with a large down payment.
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Nominal yield
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The yield to investors before adjustments for fees, inflation or risk
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Non-assumption clause
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A loan provision that prohibits the transfer of a mortgage to another borrower without lender approval.
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Non-compete clause
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A clause that can be inserted into a lease specifying that the business of the tenant is exclusive in the property and that no other tenant operating the same or similar type of business can occupy space in the building. This clause benefits service-oriented businesses desiring exclusive access to the building's population.
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Non-conforming loan
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A non-conforming loan is any loan that doesn't meet the qualifications or is too large to be purchased by Fannie Mae or Freddie Mac.
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Non-discretionary funds
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Funds allocated to an investment manager requiring the investor's approval on each transaction
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Non-investment-grade CMBS
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Securities rated "BB" or "B," also referred to as high-yield CMBS
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Non-liquid asset
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An asset such as a house that is not easily turned into cash. Also called a “Fixed Asset”.
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Non-performing loan
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A loan that is unable to meet its contractual principal and interest payments
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Non-recourse debt
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A loan that, in the event of a default by the borrower, limits the lender's remedies to a foreclosure of the mortgage, realization on its assignment of leases and rents, and acquisition of the real estate
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Nonrecurring closing costs
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Fees that are only payable once such as appraisal, loan points, credit report, title insurance and home inspection.
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Note
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A legal document that requires a borrower to repay a mortgage at a certain interest rate over a specified period of time.
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Note rate
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The interest rate specified in a mortgage note.
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