Is your multifamily development feasible?

The model is free and you don't need to sign in. Results appear right on the page, and you don't have to give an email. It covers multifamily development only.

Enter the unit mix and costs and you get:

• Yield on cost
• Development spread, in bps against the exit cap, with a verdict of Strong, Marginal or Below target
• Total cost and cost per unit
• Stabilized NOI
• The loan, with loan to value and loan to cost, and the binding test
• Exit value
• Sources and Uses tables

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It answers one question: will the finished building be worth enough more than it costs?

Two numbers get you there. Yield on cost is stabilized NOI divided by total project cost. The development spread is yield on cost minus the exit cap rate. More on the first one in what is yield on cost.

• Revenue: unit mix, rents, vacancy and other income.
• Costs: land, hard costs, sitework, soft costs, any developer fee, and financing costs.
• Market and loan: exit cap rate, construction months and loan-to-cost.

If the spread is above your target, the deal has earned a full underwrite. If it's thin or negative, change the cost, the rents or the density, or walk away.

This report is an estimate produced from user inputs and general market assumptions. It is not investment, legal, tax, or lending advice, and it is not an appraisal or an offer of financing. Verify all figures independently before making any decision.

Construction interest depends on the loan, and the loan depends on total cost. In the full model, CRE Build solves construction interest and fees together with total cost, with no circular references.

Draw timing drives interest too. Draw schedules: Straight line, Front-loaded, Back-loaded, Bell, or Manual monthly; save your own curves in Settings › Draw curves.

The full multifamily development model starts from its own template. Take over any line as Default, Hardcode, Alternate method (where offered) or Custom formula (expense and budget lines only), and you get a plain-English readback of what you changed.

The loan is sized as the smallest of LTC, LTV, DSCR, debt yield and any stated amount, and the binding constraint is named, so the loan is capped at the LTV, DSCR or debt-yield limit (or LTC, or your stated amount). See multifamily loan sizing and development sources and uses.

On the partner side: Equity & Waterfall: LP/GP tiers with hurdles, splits and promote, plus preferred equity; partner contributions, distributions and multiple.

When the numbers work, share a private copy with your partners, equity or lender. They review it free in their own copy and send changes back as proposals you accept or decline.

Example go/no-go with invented round numbers.

• Total project cost, financing included: $20,000,000
• Stabilized NOI: $1,200,000
• Exit cap rate (example): 5.25%
• Sponsor's target spread (example): 125 bps

1. Yield on cost = $1,200,000 ÷ $20,000,000 = 6.00%
2. Development spread = 6.00% − 5.25% = 75 bps
3. Against the target: 75 bps is under 125 bps, so no-go as drawn
4. Value check: $1,200,000 ÷ 5.25% = $22,857,143, a margin of $2,857,143 (14.3% of cost)
5. What would work: max cost at target = $1,200,000 ÷ (5.25% + 1.25%) = $18,461,538. You'd need to cut about $1.54M of cost, or get NOI to $1,300,000, to clear the target.

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