Attendees & PurposeCourse OverviewSIGN UP TODAYAgendaVenue

Development Pro Forma 101 Workshop
October 24th, 2019   |     The Edgewater Hotel - Seattle

Presenters

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

LIVE. MENTORED. TRAINING.

October 24th 9:00 AM - 4:00 PM  |           The Edgewater Hotel - Seattle

Course Overview

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.

*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

Reporting

Development Pro Forma 101 Workshop
October 24th, 2019   |     The Edgewater Hotel - Seattle

SIGN UP TODAY

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

Venue

The Edgewater Hotel - Seattle, Washington

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

2411 Alaskan Way, Seattle, WA 98121

Perched on the edge of Pier 67, The Edgewater hotel in Seattle offers an easy walk to downtown vibrancy, stunning views and lodge luxury. Surround yourself with the beauty of the majestic Olympic Mountains, the sparkling waters of Elliott Bay and the velvety-pink sunsets of the Northwest sky. 

Source: The Edgewater Hotel (edgewaterhotel.com)

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.
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 ARGUS@altusgroup.com 
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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.

SIGN UP TODAY