Capital Stack
The capital stack is the complete structure of all capital sources funding a real estate investment, layered by seniority from senior debt at the bottom through mezzanine debt, preferred equity, and common equity at the top, with each layer carrying different risk-return profiles.
Capital Stack is a key concept that affects property valuation, financing decisions, and investment returns in the triple net lease market. Understanding Capital Stack helps investors make informed acquisition and management decisions.
Capital Stack directly influences how commercial properties are valued, financed, and traded. Changes in Capital Stack can impact cap rates, NOI calculations, and overall investment performance for net lease properties.
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General and for orientation only. How any of this applies to a specific property, lease or transaction is a question for your own advisors. Ask about a property.