Valuation Term
Cap Rate
Cap rate explained for Westside apartment owners reviewing valuation and buyer underwriting.
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Westside Multifamily Glossary
Plain-English definitions for valuation, rent control, escrow, financing, and sale-process terms that matter in Westside multifamily transactions.
Valuation Term
GRM
Gross rent multiplier explained for apartment owners reviewing price against income.
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Broker Opinion of Value
Broker Opinion of Value explained for apartment owners deciding whether to sell, refinance, exchange, or hold.
Read Glossary TermSale Preparation Term
Rent Roll
Rent roll explained for apartment owners preparing for valuation, buyer review, or sale.
Read Glossary TermRent Control Term
Santa Monica Rent Control
Santa Monica rent control explained for apartment owners reviewing valuation and sale strategy.
Read Glossary TermValuation Term
Price Per Unit
Price per unit explained for apartment owners comparing Westside multifamily sales.
Read Glossary TermEscrow Term
Estoppel Certificate
Estoppel certificates explained for apartment owners preparing for buyer due diligence.
Read Glossary TermValuation Term
Loss to Lease
Loss to lease explained for apartment owners reviewing rent upside and buyer underwriting.
Read Glossary TermRent Control Term
RSO
LA Rent Stabilization Ordinance explained for apartment owners reviewing value and sale strategy.
Read Glossary TermRent Rules Term
AB 1482
AB 1482 explained for California apartment owners reviewing rent rules and sale planning.
Read Glossary TermRent Control Term
Costa-Hawkins
Costa-Hawkins explained in general terms for apartment owners reviewing rent control and valuation.
Read Glossary TermTransfer Tax Term
Measure ULA
Measure ULA explained for Los Angeles apartment owners reviewing sale planning and transfer tax exposure.
Read Glossary TermTransfer Tax Term
Measure GS
Measure GS explained for Santa Monica apartment owners reviewing sale planning.
Read Glossary TermSale Planning Term
Tenant Buyout
Tenant buyouts explained in general terms for apartment sale planning and valuation.
Read Glossary TermRent Control Term
Vacancy Decontrol
Vacancy decontrol explained for rent-controlled apartment valuation and buyer underwriting.
Read Glossary TermFinancing Term
Debt Service Coverage Ratio
DSCR explained for multifamily owners reviewing financing, buyer underwriting, and sale feasibility.
Read Glossary TermFinancing Term
Loan Assumption
Loan assumption explained for apartment owners reviewing existing debt and sale options.
Read Glossary TermDeal Structure Term
Seller Financing
Seller financing explained for apartment owners reviewing deal structure and buyer pool options.
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Price Per Square Foot
Price per square foot is a sale metric that divides price by building square footage. It can help compare assets, but it should not replace income-based valuation for apartment buildings.
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Cash-on-Cash Return
Cash-on-cash return measures annual pre-tax cash flow against cash invested. Buyers use it to screen income, debt, and return expectations.
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Soft-Story Retrofit
A soft-story retrofit is seismic strengthening for buildings with vulnerable open parking or ground-floor conditions. It can affect cost, diligence, insurance, and buyer confidence.
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Seismic Retrofit
A seismic retrofit is structural work intended to improve earthquake performance. Buyers review notices, permits, completion, cost, and remaining obligations.
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Culver City Rent Control
Culver City rent control refers to local rules that may affect rent increases, tenant protections, and buyer underwriting for apartment buildings in the city.
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Just Cause Eviction
Just cause eviction rules limit when certain tenancies may be terminated. Owners should review property-specific rules with counsel before relying on assumptions.
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1031 Exchange
A 1031 exchange is a tax-deferral strategy for qualifying investment property sales. Owners must coordinate timing and rules with tax advisors and a qualified intermediary.
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Qualified Intermediary
A qualified intermediary is the independent party used in many 1031 exchanges to hold exchange funds and help coordinate required deadlines.
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Boot
Boot is value received in a 1031 exchange that may not qualify for tax deferral. Owners should discuss possible boot with a CPA or tax advisor.
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Depreciation Recapture
How prior depreciation affects taxable gain on an apartment sale, and why unrecaptured Section 1250 gain is not a flat tax on your sale price.
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Supplemental Property Tax
Supplemental property tax is an additional property tax bill that may follow a reassessment event. Buyers and sellers should understand it during planning.
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ADUs Definition
Accessory dwelling units can create potential additional rental income, but buyers review zoning, cost, access, parking, rent rules, and execution risk.
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Transit Oriented Communities Definition
Transit Oriented Communities rules can affect development potential near qualifying transit. Buyers review site specifics before assigning value to TOC upside.
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Zoning
Zoning controls what can be built or used on a property. In multifamily sales, zoning can affect development potential, ADU feasibility, and buyer strategy.
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NOI
Net operating income is income after operating expenses and before debt service, income taxes, depreciation, and capital costs. Buyers use NOI heavily in valuation.
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Operating Expenses
Operating expenses are the recurring costs of running an apartment building. Buyers review them to estimate NOI and pricing.
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Market Rent
Market rent is the rent a unit may achieve in current conditions. In regulated buildings, market rent is not always immediately achievable.
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Legal Rent
Legal rent is the rent permitted under the applicable lease and rent-control framework. It should be verified before buyers rely on upside.
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Pro Forma
A pro forma is a forward-looking income and expense estimate. Buyers compare it against actual financials and the realism of the assumptions.
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Vacancy Factor
Vacancy factor is an underwriting allowance for lost rent from vacancy or collection risk. It can affect NOI and value.
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Assumable Loan
An assumable loan may let a buyer take over existing debt if the lender and documents allow it. Terms, consent, and costs matter.
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Capital Improvements
Capital improvements are larger property investments such as roofs, systems, seismic work, or unit upgrades. Documentation can affect buyer confidence.
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