What term refers to the financial structure of most commercial real estate investments?

The term "Capital Stack" refers to the financial structure of most commercial real estate investments. It describes the varying levels of capital that contribute to a real estate project, outlining where different types of funds originate within the project’s financing. The Capital Stack typically includes various layers of financing, such as senior debt, mezzanine debt, preferred equity, and common equity. Each layer carries different risk profiles and returns, which allows investors to understand the hierarchy and seniority of claims on the project's cash flows and assets.

In commercial real estate, understanding the Capital Stack is crucial for assessing risk and structuring investments effectively. It helps investors and stakeholders analyze how returns are generated at each level, including how profits are distributed among different equity holders and creditors. The other terms listed, while related to real estate finance, do not encapsulate the full breadth of financial structure like the Capital Stack does.