Altus Group Presents: Development Pro Forma 101 Workshop

Altus Group Presents:
A Pro Forma is a key tool for decision and feasibility analysis on real estate development projects leveraging data.
 
This course will be held in the Seattle market.
 
Learn more about our courses below and sign up today!
 
Development Pro Forma 101 Workshop
This full-day course will cover the Pro Forma as being the ‘key tool’ for decision and feasibility analysis on real estate development projects. Participants will be led through the general theory, concepts, key variables, and the step by step process of creating an industry-standard Pro Forma for a mixed-use high rise project using ARGUS Developer™ software.
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*Note for all attendees that laptops will not be provided and must be brought for active participation during our sessions.
This course will be for the benefit to those active in the building, financing, and investing in real estate development projects, including:
Attendees & Purpose
 
Developers
Realtors & Asset Managers
Lenders
Municipalities
Upon completion of this course, you will be able to use pro forma analysis to undertake:
Due Diligence for Acquisition, Disposition, and Valuation Purposes
Highest & Best-Use Analysis
Sensitivity & Risk Assessment Analysis
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Pro Forma 101 Instructors
 

Christopher Mullins
Senior Director, Cost & Project Management
Altus Group
As Senior Director, Christopher leads the Vancouver Cost & Project Management team. With over 25 years of real estate industry experience, he provides strategic advice and guidance based on real-world expertise. Skilled in management and commercial operations, Christopher delivers Owner’s Representative services with Cost, Project, and Development Management to empower clients to achieve successful outcomes and obtain the most value for money on their project, development, and portfolio investments.

David Eger
Vice President, Research, Valuation & Advisory
Altus Group
David Eger has been providing professional services in the City of Vancouver, British Columbia since 1989. David’s experiences with appraisals are inclusive of financial institutions, major real estate development companies, pension funds, and for professional firms of lawyers and accountants. He specializes in the preparation of detailed Development Pro Formas using ARGUS  Developer, and the valuation of complex and larger sized income-producing real estate assets.

Simon Marchand
Associate, Cost & Project Management
Altus Group
Simon is skilled in development consulting, with over 10 years of Canadian real estate industry experience. Public bodies and developers regularly engage his pro forma expertise to establish appropriate project metrics to obtain financing and rezoning approvals within Metro Vancouver. With a formal background in structural engineering, Simon provides methodical research and resolution of unique development challenges to deliver accurate and dependable project budgets with comprehensive hard and soft costs.
 
ARGUS Developer Instructors
 
Katie Turnak
Global Manager of Instructional Design, ARGUS
Altus Group
Katie Turnak is the Global Manager of Instructional Design and a 7-year veteran of the ARGUS team. Katie leads the Instructional Design team in identifying the performance, skills, knowledge and information gaps our global clients have across the ARGUS suite of products. In turn, her team creates and designs learning experiences that help close this gap, based on instructional theory and best practices.

Linda Mejias
Instructional Designer, ARGUS
Altus Group
Linda is a seasoned veteran of the ARGUS Team and started her tenure as a Support Analyst.  Was promoted to Senior Trainer and is currently the Lead Instructional Designer for the EMEA Region, while working collaboratively on the suite of ARGUS products across all regions.  Linda is certified in all ARGUS products.

 
Workshop Agenda
 
Nailing the Basics
Who, What, Why, When, Where?

What is a Development Pro Forma?  
Who uses Development Pro Formas?
Where are Pro Formas used?
Why are Pro Formas used?
When are Pro Formas used? 

Pro Forma Basics 

(Gross Revenues less Land Cost less Hard Construction Costs less Soft Construction Costs less Financing Costs = Developers Profit)
Knowing Your Inputs
What is the difference between Gross Floor Area (GFA), Gross Liveable Area (GLA), and Net Saleable Area (NSA)?

Estimating Revenues and Absorption Rates and the relationship between Achievable Revenues and desired Absorption 
What are Hard Construction Costs?
How are they estimated, and How should they be modeled over the development horizon?
What are Soft Construction Costs?
How are they estimated, and How should they be modeled over the development horizon?

What are Project Financing Costs and how are they estimated?

Typical ‘rules of thumb’ for key construction cost variable 
Setting Your Goals
What are the Key Performance Indicators 
(i.e. Profit on Cost, Profit on Revenue, Project IRR, Equity IRR, Return on Equity) 

What are the desired profit margins for various project types in Seattle
Managing the Risk
Calculate the impact on developers profit and developers profit margins resulting from such items as:
Delay in approvals
Cost overruns
Changes in interest rates
Downturn in demand and sales rates
Design Changes
Building use and mix changes
What is the Likelihood of the variable changes
Preparing contingency plans


Laying out your Pro Forma Report
Leveraging the right tools to build your Pro Forma
Pro Forma Reporting
What are the various elements that should be included in a Pro Forma? (i.e. the balance between not enough detail vs. too much detail)
Review of the ARGUS Developer software

ARGUS Developer Software vs. Excel for Development Pro Formas  
Review of a completed Pro Forma model that was built using the ARGUS Developer Software
Step-by-Step instructions and modeling of a mixed-use project in the ARGUS Developer software.
Students will have ARGUS Developer installed on their laptops prior to the date of the course and will participate along with the instructor who will cover the specific steps involved in building a Development Pro Forma


How to run a sensitivity analysis

Altus Group Limited is a leading provider of independent advisory services, software and data solutions to the global commercial real estate industry. Featuring our industry-leading ARGUS® software solutions, for the past 25 years ARGUS products have been the industry standard for creating cash flows and valuations helping thousands of commercial real estate professionals gain transparency into their property assets, manage risk and optimize their portfolios. Real estate investors, asset and portfolio managers, lenders, brokers, appraisers and other commercial real estate professionals rely on ARGUS to facilitate transactions and communicate value.

1-888-692-7487
 ARGUS@altusgroup.com 
 750 Town and Country Blvd. Suite 800, Houston, TX 77024

 
1-888-692-7487
 ARGUS@altusgroup.com 
 750 Town and Country Blvd. Suite 800, Houston, TX 77024
Altus Group Limited is a leading provider of independent advisory services, software and data solutions to the global commercial real estate industry. Featuring our industry-leading ARGUS® software solutions, for the past 25 years ARGUS products have been the industry standard for creating cash flows and valuations helping thousands of commercial real estate professionals gain transparency into their property assets, manage risk and optimize their portfolios. Real estate investors, asset and portfolio managers, lenders, brokers, appraisers and other commercial real estate professionals rely on ARGUS to facilitate transactions and communicate value. 
 
 
Reserve Your Seat
Pro Forma workshop instruction
ARGUS Developer Training Documentation
2-Month Academic License of ARGUS Developer (October 24, 2019 to December 24, 2019)
Catered Lunch and Refreshments Throughout
*Offer expires October 17, 2019. Cannot be combined with other offers. 

Discount applies to first year of subscription for new client, and can be applied to a new module subscription for current clients.
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