The standard for real estate pro forma software
ARGUS Developer™ is the global industry standard for real estate development appraisal software, combining cutting edge technology with a simple user interface to make any level of development analysis easy.
ARGUS Developer is in use by thousands of owners, commercial developers, home builders, land developers, agents and financial institutions throughout the world. It is designed to work for all forms of real estate, including commercial, residential, retail, office, industrial, hotels, other operated properties, land development and any combination for mixed-use developments.
- Multi-phased graphical project interface
- Unlimited project size and scope using individual phases and timing
- Sensitivity Analysis using up to four dimensions, including building cost rates, capitalization rates and time overruns to expose the risks of the project
- Automatic generation of timed cash flows, using easily adjustable project timing
- User defined project templates to facilitate rapid analysis of similar projects and opportunities
- Clear reporting and outputs, including paper, PDF and Excel
- Immediate real-time calculations
- Unlimited partners and loans with cash flows for each partner
- Mortgage takeout financing
- Mixed-use commercial and unit sales
- Preferred and waterfall returns, including: IRR “look back”, promote, and residual percentage waterfalls
- Land Residual calculation enables the determination of the land purchase price based on targeted returns
ARGUS Developer was designed for real estate development appraisals and includes tenancy schedule, unit sales and cost distribution capabilities. Our clients tell us they save 75% of the time it takes to do appraisals compared to spreadsheets.
ARGUS Developer presents projects in a consistent entry grid and cash flow format. Results are consistently calculated to allow proper benchmarking of projects.
ARGUS Developer automatically prepares timed cash flows based on centrally controlled project timings. Changing the construction duration from seven to eight months takes seconds – costs are automatically redistributed in the cash flow
The Problem with Spreadsheets…
Spreadsheets are a great general business tool but are not designed for real estate project analysis. Spreadsheet errors can cost your company millions. An article in the May 24, 2004 issue of Computer World stated, "Washington-based Fannie Mae made a $1.2 billion accounting error last year because of what it called "honest mistakes made in a spreadsheet" used in the implementation of a new accounting standard. Toronto-based TransAlta Corp. took a $24 million charge last year after a bidding snafu caused by a cut-and-paste error in an Excel spreadsheet. …recent audits of 54 spreadsheets found that 49 (or 91%) had errors, according to research by Raymond R. Panko, a professor at the University of Hawaii."
(Source: Computerworld)
Let’s compare spreadsheets to ARGUS Developer.
Spreadsheet Limitations |
ARGUS Developer Advantages |
Spreadsheets are prone to errors and time consuming. Up to 80% of the time spent in spreadsheets is “programming” formulas and checking that the numbers are right. |
ARGUS Developer was designed for real estate pro formas and includes rent roll/tenancy schedule, unit sales and cost distribution capabilities. Our clients tell us they save 75% of the time it takes to do pro formas in spreadsheets. |
There is no standard spreadsheet format for pro formas. Comparing projects of different types and sizes is extremely difficult. |
ARGUS Developer presents projects in a consistent entry grid and cashflow format. Results are consistently calculated to allow proper benchmarking of results to compare projects. |
Spreadsheets are only 2 dimensional. Time must be represented in months across the spreadsheet in columns with Revenues and Costs listed in rows. If the construction duration of the project needs to be changed from 7 to 8 months every row must be redistributed. |
ARGUS Developer automatically prepares timed cash flows based on centrally controlled project timing. Changing the construction duration from 7 to 8 months takes seconds – costs are automatically redistributed in the cashflow. |
Multi-phase projects are not easy to handle. Multiple tabs in a workbook are added up on a “Project Summary” tab. These models are difficult to follow and prone to errors. |
Our Timescale and Phasing allows for an unlimited number of phases that can be combined in any number of phase groupings. This allows for “highest and best use” analysis along with timed multi-year cash flows without the risk of spreadsheet errors. |
Debt and equity deal structuring is very difficult to model. Equity and loan draw schedules are often not possible without hours of modeling. Profit sharing is estimated as timed cash flows are too difficult to model. Complex deals result in partners arguing over whose model is “more right” |
ARGUS Developer has a very powerful Debt & Equity Module. Unlimited numbers of partners and loans with contribution and repayment priorities are quickly set up. Our NEW deal structuring component allows for waterfall profit distribution analysis with detailed cash flows per partner and loan. |
Click on our Video Demonstrations Page to watch a 10 minute video showing the power of ARGUS Developer.
ARGUS Developer - Modules |
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ARGUS Developer comes in two modules that are simple to use and rich in features. You can model projects ranging in scope from single tenant industrial buildings to multi-year master planned communities of immense complexity… quickly, easily and accurately.
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The main module comprises the project phasing and timing along with the definitions of revenue and costs for all types of real estate projects.
| Feature |
Purpose |
Unlimited Project Size & Scope |
Projects of virtually any size and complexity can be modeled in ARGUS Developer. Using a GANTT chart timeline entry screen, establishing project phases and timing is easy. As more information becomes available changes to project timing are made in seconds.
Revenue can be entered for each phase in any combination of rental income and unit sales. Costs are quickly entered and can easily be related to area square footage, units or percentages of other costs.
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Automatic Generation of Timed Cash Flows
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ARGUS Developer automatically distributes revenues and costs based on project timing. Users can easily adjust the timing of each cashflow item if desired using pre-defined or user defined cost distribution curves. |
User Defined Project Templates |
ARGUS Developer files can be saved as templates to facilitate rapid analysis of similar opportunities in the future.
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Clear Reports & Outputs |
ARGUS Developer has several reporting capabilities. The program has a comprehensive suite of internally generated reports. Virtually any custom and specific reporting requirements are handled. Cash flows and area set up information can quickly be exported to MS Excel™ for reporting purposes if desired. |
Sensitivity |
ARGUS Developer has powerful sensitivity analysis capabilities – exposing the risk of the project quickly. The 1, 2, 3 or 4-dimensional sensitivity matrix calculates up to 625 simultaneous cash flows showing the effect of stepped changes in a variety of selectable fields, including building cost rates, rental value rates, capitalization rates and time overruns. |
ARGUS Developer - Finance Module
ARGUS Developer’s powerful Finance module allows comprehensive analysis of project financing and returns.
| Feature |
Purpose |
Unlimited Partners and Loans |
The Finance Module allows an unlimited number of partners and loans to be modeled. A detailed cashflow is prepared for each partner along with an analysis of leveraged returns. This automatically shows a schedule of equity contributions and construction loan draws with repayments.
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Mortgage Takeout Financing
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Analyze mortgage takeout financing based on the projects stabilized income. Debt servicing requirements and ratios are instantly calculated. |
Preferred and Waterfall Returns |
Our new enhanced Finance module will allow the modelling of waterfall returns including IRR lookbacks, promotes and residual percentage waterfalls.
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View a video demonstration to see how a development appraisal is constructed using ARGUS Developer
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