Development Spending dialog — used for commercial development, rehab, or new construction (apartments, shopping centers, office buildings). Do NOT use this for Unit Sales/condo/subdivision development — cancel and use Edit / Unit Sales instead for those property types.
Cost grid: list as many cost items as needed. Each item has: Amount; Start Date and Service Date (for depreciation timing — these can differ if an item is purchased before it goes into service); Depreciable Life (supports cost segregation — assign individual depreciable lives to individual cost items rather than one blanket life); Percentage Included in Draws (how much of that item is funded by the construction draw loan vs equity).
Loan toggles: Construction Draw (on/off) and Permanent Loan (on/off) — both can be configured within this dialog.
New development vs rehab: for ground-up development, include Land as one of the cost items in this grid. For a rehab of an already-owned or already-purchased property, the original purchase price goes on the Investment page (Price of Property), not in this dialog — only the rehab/renovation costs go here.
Reports available within the dialog: various cost summary and schedule reports specific to development spending.
Click OK — generates all the resulting Depreciation-Dev pages automatically. Edit afterward either directly on the generated pages or by reopening this dialog — both update the same underlying data (e.g. modifying Foundation cost spread from 2 months to 1 month updates immediately in both places). Construction Draw report shows monthly draw amounts linked directly to the spending items — increasing any cost item (e.g. Legal and Title) automatically increases the corresponding month's draw.
Sensitivity Analysis: any cost item can be varied against IRR After Tax or other measures — varying one item automatically varies its associated draw loan funding and interest simultaneously.
Next step after completing Development Spending: proceed to Revenue pages to enter leases — see the Revenue/Lease Up movies.