Northspyre’s New Capital Management & Portfolio Analytics Solutions Aid Developers Navigating Today’s Complex Financial Landscape

June 12, 2024

25 3 minutes read

Northspyre, the leading real estate development platform for project delivery and capital management, today announced the launch of 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.

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Northspyre’s Complex Capital Management and Portfolio Analytics Plus solutions equip developers with comprehensive insights and advanced analytics across various projects, helping mitigate financial risks and future-proof developers’ business strategies. (Photo: Business Wire)

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 highly competitive LIHTC space.

LIHTC projects are inherently more difficult to execute, as these projects at times have six to eight different funding sources, each with unique reporting requirements. With Complex Capital Management, 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: The platform pairs sources down to the invoice and assigns multiple sources to each budget line, automatically drawing funds from the correct source when invoices come in for the associated budget item.
Source Projections: 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. This ensures all funds are properly and efficiently allocated based on each financial partner’s requirements and limitations.
LIHTC Compliance Forecast: This technology tracks basis-eligible budget line costs and invoices against tax-exempt sources to instantly generate detailed LIHTC reports. It also enables developers to monitor if projects are on track to pass the 50% test during cost certification at the end of a project.
Configurable Draw Templates: The platform’s flexible tool allows developers to create custom draw reports in real-time, showing the same budget line data formatted to the unique reporting requirements of each financial partner and stakeholder.

Key features of Portfolio Analytics Plus include:

Portfolio Capital Planning: The product gives executives a comprehensive view of source utilization and cash flow projections across a portfolio over a multi-year horizon.
Developer Fee: The tool also aggregates the developer fee cash flow across a portfolio, providing a holistic view of operating costs and projected income realization.
Compare: This 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.

Northspyre is the industry’s only purpose-built intelligence platform for real estate owners and developers managing projects such as ground-up developments, fit-outs and major renovations across all asset classes, including multifamily, office, retail, affordable housing, hospitality and mixed-use. Northspyre began servicing customers in New York and Boston in 2017 and has since grown its footprint nationally, attracting the attention of developers in every major metro area in the country.

About Northspyre

Northspyre is a cloud-based intelligence platform that empowers real estate professionals to make proactive, data-driven decisions on development, capital and asset projects across real estate project types. Created specifically to meet the needs of owners, developers, project management firms and internal real estate teams, Northspyre leverages the power of automation, data analytics and artificial intelligence to deliver projects on time and within budget. Northspyre’s technology is dedicated to helping teams deliver even the most complex project or portfolio on-time and on-budget. Since 2017, Northspyre has facilitated more than $175 billion in client projects. To learn more, visit www.northspyre.com.