In today’s high-stakes commercial real estate environment, it’s more important than ever for developers to have consistency and predictability in their operations. While some may say being predictable is boring, we disagree. With so many moving parts and millions of dollars at stake, the smallest oversight can be catastrophic to your bottom line. But, by leveraging data insights, predictive intelligence, and workflow automation tools in Northspyre you can take control of business outcomes and ensure every project runs smoothly.
Our latest innovations enable greater predictability, empowering developers to eliminate compliance risks, conduct capital calls with greater efficiency, augment financial reporting, proactively plan projects and build reliable budgets, make data-informed decisions, evaluate vendor performance, and more.
Complex Capital Management: With Multiple Sources
Investors and financial institutions have become more cautious with their capital reserves in recent years. As a result, developers have had to leverage non-traditional funding sources to make deals pencil, increasing the complexity of their capital stack. It has also led to an unprecedented rise in projects funded partly through Low-Income Housing Tax Credit (LIHTC) programs. While advanced capital and LIHTC deals allow developers to keep active projects in their pipeline, they are inherently more risky and present a new and unique set of challenges that make them difficult to execute successfully.
Our new add-on solution, Complex Capital Management, delivers a suite of tools designed to help developers adapt to the industry’s new normal by making it easier to proactively manage complicated financials and compliance requirements through each stage of development.
Facilitate Financial and Reporting Compliance With Ease
With Complex Capital Management, you’ll reduce the risk of non-compliance, cost overruns, and funding delays with compliance and reporting frameworks built into your project timeline. Using Automated Source Transactions, project teams can rest assured knowing that sources are paired with the right budget lines and will be properly deployed when invoices come in.
As an affordable housing developer, you can use the LIHTC Compliance Forecast to project how tax-exempt bonds are expected to fund basis-eligible budget lines through the end of your project, making it easy to proactively monitor compliance with all state housing authority financial requirements, including the 50% test. MWBE Vendor Tracking, a new allocation report in the draw request, details budget line utilization by vendor type, ensuring you meet those targets.
Complex Capital Management also promotes reporting compliance on LIHTC and advanced capital projects with auto-generated and highly configurable draw reports that satisfy your lenders’ unique reporting requirements.
Lead Effective Project Execution With Efficiency and Precision
Combining Northspyre’s core functionality with Complex Capital Management gives teams the information and tools they need to enable a seamless end-to-end development lifecycle for projects with complicated source structures and requirements. With source projects, users can see where their funding sits today while also monitoring how sources will fund budget lines through the end of the project. This allows them to understand if and when sources are expected to run out, so they can proactively raise capital needs with their financial partners.
With a comprehensive record of each automated source transaction and related paperwork, preparing for audits is simple and stress-free instead of distracting from more strategic, valuable work. Configurable Draw Templates with drag-and-drop functionality simplify the reporting process, allowing teams to deliver professional, real-time reports formatted according to each partner's expectations with the click of a button.
Portfolio Analytics Plus: Grow the Value of Your Portfolio With Real-Time Insights You Can Act On
Think about eagles for a minute. They survey the world from 10,000 feet above, focus on a single thing below, and then swoop into action on that target. In the blur of multiple projects and thousands of active budget lines, Portfolio Analytics Plus gives development executives and senior leaders an eagle eye. It helps surface risks, opportunities, and trends across your portfolio in real time so you can take action to protect your bottom line and strategically plan for future projects.
Engage in Smarter Capital and Resource Planning
Developer Fee reports provide detailed insights into operating costs and forecasts for when income will be realized across the portfolio. Development executives can use these insights to make better-informed business decisions and create scalable strategies that accommodate growth without sacrificing profitability. Portfolio Capital Planning delivers portfolio-level visibility into source utilization and cash flow projections over a multi-year horizon. These insights help drive up forecast accuracy, empowering executives to map projects out earlier and proactively acquire resources–human, capital, and digital–to ensure the best outcomes.
Optimize Portfolio Performance With Data Insights and Benchmarking Intelligence
Using Compare, executives can evaluate costs across their portfolio to uncover trends and understand what is causing higher or lower costs on specific budget lines. Your team can then make informed budget adjustments on current and future projects that improve profitability. Benchmarking against similar data points reduces the risk of under or overestimating costs during early planning, leading to more predictability. Sr. leaders can also make better-informed decisions when evaluating vendors and planning for future projects by automatically benchmarking vendor performance data and comparing it across their portfolios.
New Platform Enhancements
We’ve also improved existing features and functionality on our core platform.
We’ve added three new key stats to the Cost Analytics page–adjustable cost/unit, budget overrun*, and percentage of total development costs*–to help you visualize data with more relevance. A new change overview graph gives you an easy way to see the causes for change order and exposures across your portfolio. We’ve also added several new columns* to the cost analytics table to be more aligned with the ACR.
Vendor Analytics now includes key stats for vendor overrun* and projected cost/unit (adjustable). New cost overview graphs help you easily understand base contracts, change orders, and exposures for each vendor at the portfolio level and the cause for change orders and exposures. We’ve also added a performance visualization summarizing vendor scores*. Two new columns*-percent complete and adjustable cost per unit–have been added to the vendor analytics table, too.
*features are only available with Portfolio Analytics Plus.
Northspyre is constantly innovating with you in mind. Be on the lookout for more announcements over the coming months!
Curious to learn more? Watch our On-Demand Product Launch Video to learn more about how Complex Capital Management and Portfolio Analytics Plus can help your real estate development team deliver predictable outcomes and higher returns at scale.
