Magic page - Part of a REIT's IPO prospectus whose use is waning as investors become more sophisticated. A magic page describes how a new REIT will accomplish its future expectations for funds from operations or funds available for distribution.
Maker - The party that creates or executes a promissory note and promises to pay the note when it becomes due.
Mark to market - The process of restating the cost or value of an original investment to an amount estimated to be the current market value.
Market capitalization - A measure of a company's value calculated by taking the current share price and multiplying it by the current number of outstanding shares.
Market liquidity risk - The potential that an institution cannot easily offset specific exposures, such as liquidity reserve investments, without incurring a loss because of inadequate market depth or market disruptions. One of the three primary components of liquidity risk along with liquidity contingency risk and mismatch liquidity risk.
Market rental rates - The rental income that a property most likely would command in the open market, indicated by the current rents asked and paid for comparable space Market Rents. Market rents can be lower or higher than the actual rents.
Market study - A study of current real estate trends to build a forecast of future demands for a certain type of real estate projects, including a square footage estimate that can be absorbed and rents that can be charged.
Market value - The highest price a property would command in a competitive and open market under all conditions requisite to a fair sale.
Marketable title - A property's title free from all encumbrances that can be readily marketed.
Master lease - A primary lease which controls any subsequent leases and may cover more property than the subsequent leases.
Master servicer - An institution that has the authority to act on a trustee's behalf for the good of security holders in collecting payments from a borrower, advancing funds in the event of payment delinquencies and, in the event of any payment default, taking the steps to foreclose on a property securing a loan.
Maturity date - The date when the final or total principal balance becomes due and payable.
Mechanic's lien - A claim created by the statutes of a state for the purpose of securing priority of payment of the value or price of work performed and or materials furnished in erecting, fixing, rehabilitating or improving a building or other structure that is attached to the land.
Meeting space - In hospitality locations such as hotels, motels, convention centers or restaurants, space that is available for the public to rent for various types of business or social gatherings.
Metes and bounds - The boundary lines of land with there terminal points and angles. The way of describing real property by listing the compass directions and distances of the boundaries, usually along with the co-ordinates used in the Government Survey System. "Bounds" means direction and "metes" means distance.
Mezzanine financing - Mezzanine financing is the middle layer of financing, such as funding from venture capital, in leveraged buy-outs or in preparation for an IPO. It is the capital structure that has senior secured debt above it and equity below it. Due to the higher risk in mezzanine financing, it is higher than senior debt and usually with a higher interest rate also.
Mid-rise - A building constructed four to eight stories above ground level. In a high-rise business district this may also define buildings extending up to 25 stories.
Mixed-use - The using of a building or project for more than one use, such as a building with a first floor for commercial use and a second floor for residential use.
Modern portfolio theory (MPT) - A way to calculate a portfolio of assets' risk and return introduced by Harry Markowitz in 1959. MPT is the current foundation for principles of diversifying investments, emphasizing the portfolio instead of the individual assets and how assets perform in relation to each other on the theory that investors may benefit from diversification when the returns of an asset class do not move in lock step.
Mortgage - A legal document by which an interest is created in real property due to the real property being used as security for the payment of a debt or performance of an contracted obligation.
Mortgage constant - The percentage that describes level payments made up of interest and principal that must be made every year of a mortgage to fully amortize a mortgage over the specified number of years.
Multi-Family Property Class A - Property that is above average in design, construction and finish which commands the highest rental rates and usually has a superior, very accessible or desirable location. Generally, maintained and managed professionally by a national or large regional management company.
Multi-Family Property Class B -Property frequently not possessing design and finish reflective of current standards and market preference, adequately constructed, generates average rental rates, and the size of the units is usually greater than current standards. Generally, maintained and managed by a national or regional management company.
Multi-Family Property Class C - Property that affords functional housing, shows signs of deferred maintenance, command below average rental rates, and is usually located in less desirable neighborhoods. Tenant occupation is less stable than Class A or B properties. Generally, maintained and managed by a small, local property management company or the owner.
