A commercial developer underwrites roughly: Total project cost (land + hard costs + soft costs + financing carry + contingency) vs. stabilized value (net operating income ÷ cap rate) and return metrics (yield-on-cost, IRR, equity multiple, cash-on-cash). The spread between cost-to-build and value-when-stabilized is the development profit. Why this matters for Pereff: controlling hard-cost certainty (design-build) and reducing required equity (the financing program) directly improve the developer's returns — that's the pitch.
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