Development Financing Analysis

Crucial to successful real estate and community development is a sound and implementable financing strategy. By evaluating market and political realities affecting development, redevelopment, and the use of incentives, Development Strategies prepares pro forma financing strategies that incorporate pragmatic private revenues, operating costs, and capital expenditures. Market-based rents, prices, and operating expenses determine net operating income that, in turn, determines the amount of capital than can be financed.

When projected capital financing fails to yield an acceptable rate of return, we “test” various scenarios that adjust private market options alongside public sector financing tools. The degree of public financing and the ultimate rate of fiscal return (improved tax base over time) helps cities and states decide on the worth of becoming a financing partner in order to achieve not only private sector success but to satisfy community revitalization goals.