Introduction

The combination of planEASe with the Reporting Extension, and Graphics Extension can analyze commercial developments where a building (or buildings) is built, held and operated, and then sold (while not required, the Monthly Extension is of great help here as well). Simply go to Edit/Development Spending... to pop up the planEASe Development Spending Dialog, and enter as many development spending items as needed. Then fill in the Construction Draw and Permanent Loan specifications, and press OK. The permanent loan can automatically take out any or all of the draw loan balance, be a specified Debt Coverage Ratio, Loan to Value, or simply an amount you specify. Whichever loan amount you choose, the permanent loan may be fixed or variable rate, and can include several varieties of participation. Both the draw and permanent loans are (optionally) linked to the development spending items, and will change appropriately and automatically when you vary the development spending items in Basic, Sensitivity, Detail and/or Risk analysis.

Additionally, the Development Analysis capability automatically adds Construction Period Interest to your basis, if you choose to capitalize the interest on your draw loan, and depreciates it with the assets added during construction.

Several example Assumption Sets ship with planEASe to illustrate this Development Analysis capability:

apartment_dev.ru Develop an Apartment Complex with gradual lease-up apartment_dev.rp Plan the same project as a Partnership / LLC build1.ru a Build-to-Suit Industrial property planned at the summary level build2.ru the same Build-to-Suit Industrial property planned in detail

(the RP Assumption Set requires the optional Partnership / LLC Models).

In addition to this documentation, there are movies on the Movie menu in the Development Spending Dialog, Sample Reports on our WebSite, and extensive content-sensitive help available by pressing 1 when working with this capability.

Using these tools, ANY investment property development can be planned both before and after tax, including apartments, retail, offices, or build-to-suit industrial.