If the sponsor and investor receive the same preferred return, paid simultaneously, the pref is a "Pari-Passu" Preferred Return.

A Permanent Agency Loan is defined as a loan on a piece of commercial property that has a term of at least five years and some amortization. Most commercial permanent loans are amortized over 25 years.

The Physical Occupancy Rate is the percentage of available rental space that is occupied by paying tenants. To find the occupancy rate for a particular month, take the number of units rented, divided by the number available to be rented, times 100.

A Preferred Return is a profit distribution structure in which proceeds are distributed to one class of equity before another until a specific rate of return on the initial investment is reached.

A Prepayment Penalty is an additional fee some lenders charge if you pay off your loan early.

The Price Per Unit refers to the price per apartment as it relates to the sum total of the multifamily investment. In other words, the number of units divided by the total investment.

The Pro forma statement presents expected results to investors and assesses the potential earnings using specific projections or presumptions.

The Profit and Loss Statement details the revenues and expenses during a time period. This statement indicates how the revenues are transformed into net income or net profit.

The Property Management Fee is a fee paid for day-to-day professional property management services in connection with the properties.