How do I best use the model to proforma a development project that would include 2 or more buildings developed in phases over time? For example, a phase 1 building might start in month 1 and be complete 12 months later but then a second building (with new hard & soft costs associated with it) would start in month 18 or 24.
Great question. There are two ways to model a multi-phase development. The first is to model each phase in a separate file, as if they were two separate properties. You would do this if each phase had a unique ownership structure, and/or you wanted to view/understand the cost, operations, and value of each phase separately. This option would also allow you to model separate construction loans and permanent loans for each phase.
The second way is to model the two phases in one file. You would set your ‘Development Length’ (Summary tab cell M13) to the total of the two phases, but set your Operation Begin date (Summary tab cell M16) to the date when Phase I delivers with the Stabilization date (Summary tab cell M17) to the date when the project (phase I + phase II) is fully stabilized.
Keep in mind with option two, you would still only have one construction loan and one permanent loan. The permanent loan funds at stabilization.
