MODEL DESIGN
How to Build a Ground-Up Development Pro Forma
Overview
ARTICLE IN PROGRESS
We're writing a deep engineering essay on DV-001. How we built it, the design choices behind it, and how to use it. The model itself is live and available today.
DV-001 is the development pro forma that holds the entire deal on one timeline. Land closing, monthly construction draws with hard and soft cost segmentation, capitalized interest reserve, lease-up integrated with construction completion, and stabilized exit. Development spread and yield on cost are paired outputs because either alone is misleading.
Planned Sections
When the full piece is published, it will cover:
- The development problem: land closing through stabilization on one timeline.
- Design choice: monthly construction draws with hard/soft cost segmentation.
- Design choice: capitalized interest reserve sizing.
- Design choice: lease-up integrated with construction completion.
- Design choice: development spread and yield on cost as paired outputs.
- How to use the model across multifamily and commercial development.
For an example of the engineering-essay format this article will follow, see how we engineered AQ-141, the Multifamily Opportunistic Pro Forma Model.
About the Model
DV-001 is an Institutional-tier, cross-asset ground-up development pro forma. Monthly draws with hard/soft cost split, capitalized interest, integrated lease-up. Built for REPE developers running multifamily or commercial ground-up plays.