Northspyre, a real estate development platform for project delivery and capital management, launched two new products – Complex Capital Management and Portfolio Analytics Plus. These new innovations give developers better control over their projects and help to reduce risk and improve reporting in today’s increasingly challenging financial landscape, the company said.
Complex Capital Management delivers robust capabilities to help developers proactively monitor financial risk, track compliance and satisfy unique reporting requirements. This includes projects with complex capital stacks, including Low Income Housing Tax Credit (LIHTC) developments and deals with multiple capital partners. Portfolio Analytics Plus enables developers to make data-informed decisions by automatically benchmarking costs, as well as project and vendor performance data. The portfolio-wide analytics tool also provides holistic portfolio insights, multi-year spending use and capital needs projections.
“With current economic uncertainty, investors and financial institutions are being very cautious with their capital reserves,” said William Sankey, co-founder and CEO of Northspyre. “This is pushing developers to leverage non-traditional capital partners and special tax incentives programs, which means more complex reporting requirements and greater compliance risks. In response to this growing challenge, we have created products that help developers manage complicated financials across their entire portfolio.”
Northspyre’s Complex Capital Management solution is purpose-built to address the nuances of financially intricate developments with a suite of predictive intelligence and automation tools. It also has specific applications for developers working on projects within the LIHTC space. Developers can track and forecast the allocations of each funding source throughout the lifespan of a project – a task that was historically completed manually. This tool saves teams time by automatically generating personalized financial reports and ensuring project spending meets 50% test compliance requirements set by various financial partners.
Expanding on this, Portfolio Analytics Plus empowers developers to grow and maintain success as they navigate an increasingly challenging market by tracking portfolio operating costs and staying ahead of potential exposures that could impact margins. Developers utilizing the solution can also future-proof their business by leveraging historical project data and future cost projections to create scalable strategies that accommodate growth without sacrificing profitability.
Key features of Complex Capital Management include automated source transactions by pairing sources down to the invoice and assigning multiple sources to each budget line, automatically drawing funds from the correct source when invoices come in for the associated budget item. The tool also auto-generates spending projections through the end of a project with capital source data layered in so developers can easily monitor budget progress and understand the timing of utilizing each source and when capital may run out. LIHTC Compliance Forecast technology tracks basis-eligible budget line costs and invoices against tax-exempt sources to instantly generate detailed LIHTC reports.
Key features of Portfolio Analytics Plus include portfolio capital planning, giving executives a comprehensive view of source utilization and cash flow projections across a portfolio over a multi-year horizon. The developer fee tool aggregates the developer fee cash flow across a portfolio, providing a holistic view of operating costs and projected income realization, while the compare feature allows users to compare projects to other projects or portfolio benchmarks using granular aggregated budget data (i.e. TAC, cost per unit, variance), including the delta between each when comparing two projects.
