Construction Draw ScheduleFree Financial Model Download

This construction draw model forecasts a multi-family residential development from groundbreaking to stabilised operations, projecting monthly construction draws, lease-up absorption, permanent debt financing, and levered returns. It models a 200-unit apartment project with $48–50M total development cost (land, hard costs, soft costs, contingency, developer fee, capitalised interest, and operating deficit reserve). Construction is funded through equity-first mechanics (equity exhausted before construction debt draws) with interest-during-construction capitalised onto the loan balance. The permanent loan converts at stabilisation (typically Month 27) and amortises on a 30-year schedule with a 5-year balloon.

The model includes nine supporting schedules: a development budget sources-and-uses statement; a monthly construction draw showing hard costs on an S-curve, soft costs pro-rata, and opening/closing loan balances; a monthly lease-up sheet tracking unit deliveries, absorption, occupancy %, delinquencies, and cumulative operating deficit. Three annual operating sheets project rent (base, vacancy, bad debt, ancillary); operating expenses (property management, payroll, repairs, turnover, utilities, taxes, insurance, reserves — all independently driven); and NOI. Returns sheets calculate levered IRR, equity multiple, yield on cost, and development spread; a waterfall distributes annual cash flow and exit proceeds through LP preferred return, GP catch-up, and pro-rata tiers.

This model is used by developers, sponsors, and institutional investors underwriting multifamily acquisition, repositioning, and development opportunities. It addresses the unique challenges of construction phase negative cash flow, lease-up operating deficits, and interest capitalisation, making it essential for project finance lenders and equity sponsors sizing capital requirements and stress-testing downside scenarios.