Sources & uses
Development Budget
What the project costs and where the money comes from, per building. This is the page a lender wants to see.
| Line item | Building A | Building B | Building C | Building D | Building E | Building F | Total |
|---|---|---|---|---|---|---|---|
| Uses of funds | |||||||
| Land | $450,000 | $0 | $0 | $0 | $0 | $0 | $450,000 |
| Closing costs | $9,000 | $0 | $0 | $0 | $0 | $0 | $9,000 |
| Shell construction | $1,872,000 | $1,872,000 | $1,872,000 | $1,872,000 | $1,872,000 | $1,872,000 | $11,232,000 |
| Tenant improvements | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $162,000 |
| Site work | $216,000 | $216,000 | $216,000 | $216,000 | $216,000 | $216,000 | $1,296,000 |
| Subtotal — hard costs | $2,115,000 | $2,115,000 | $2,115,000 | $2,115,000 | $2,115,000 | $2,115,000 | $12,690,000 |
| Soft costs (A/E, permits, legal) | $126,900 | $126,900 | $126,900 | $126,900 | $126,900 | $126,900 | $761,400 |
| Developer fee | $112,095 | $112,095 | $112,095 | $112,095 | $112,095 | $112,095 | $672,570 |
| Contingency | $168,143 | $168,143 | $168,143 | $168,143 | $168,143 | $168,143 | $1,008,855 |
| Cost before financing | $2,981,138 | $2,522,138 | $2,522,138 | $2,522,138 | $2,522,138 | $2,522,138 | $15,591,825 |
Financing costs
Construction loan
$13,961,177Sized off total cost; funds its own fee and reserve
Loan origination fee
$139,612Interest reserve
$693,478Loan interest that accrues during construction and lease-up, funded from the loan itself before any rent exists.
Total project cost
$16,424,915Sources of funds
Construction loan (debt)$13,961,177
Equity (sponsor + investors)$2,463,737
Total sources$16,424,915
Equity = total cost − loan. At 85% loan-to-cost, the equity check is $2,463,737. This assumes the SBA manufacturing-loan path — if it falls through and leverage drops to 70% LTC, the check becomes $4,850,388.