Planning for a PIP: Budgeting Brand-Mandated Renovations

by Darrian Peck | Aug 10, 2026 | Construction

The Brand List Is a Budget Event When the franchise brand sends its property improvement plan list, it rarely reads like a budget document. It reads like a punch list: new soft goods, updated case goods, a lobby refresh, maybe a full MEP upgrade. But underneath the...

Take-Out Financing and Refinance Risk on a Development Deal

by Darrian Peck | Aug 7, 2026 | Construction

The Loan After the Loan Every construction loan has an expiration date. Developers spend months negotiating rate, leverage, and covenants on the construction facility, then treat the exit as an afterthought. That is backwards. The take-out loan, the permanent...

The NOI Ramp: Why Stabilization Timing Drives Your Return

by Darrian Peck | Aug 5, 2026 | Construction

Opening Day Is Not the Finish Line Every pro forma has a moment where the model assumes the asset is finished. The ribbon is cut, the flag is up, and the property starts generating revenue. But opening is not stabilizing. Between the first guest and the NOI figure...

Exit Cap Rate Sensitivity: The Assumption That Can Sink Your IRR

by Darrian Peck | Aug 3, 2026 | Construction

The Assumption You Cannot ControlYou can control the buyout schedule. You can control the general contractor’s discipline on change orders. You can even control which subcontractors show up with real crews instead of placeholder labor. What you cannot control is...

When Mezzanine Financing Helps and When It Hurts Your Returns

by Darrian Peck | Jul 31, 2026 | Construction

Cheaper Equity or Expensive Debt Mezzanine financing gets pitched as a bridge. In practice it behaves like expensive debt with equity-like risk. It sits below your senior lender and above your equity, and it charges a rate that reflects that position, typically in the...