Methodology, articles, definitions, documentation, and security information. The reference material that makes Qonterra useful — and the broader real estate finance reference material we wish we'd had when we started.
The Qonterra methodology is a structured approach to institutional real estate feasibility. It is not a black box. Every calculation the platform produces is documented, auditable, and reproducible. Below is the methodology we deploy by default, with notes on where customers commonly customize.
Every project is decomposed into its component assets. A mixed-use development might be structured as four assets: a hotel, a residential tower, a retail podium, and a serviced-office floor. Each asset has its own assumption set, but they share the project-level capital structure and timeline. This decomposition lets the same project be analyzed both at the asset level (is the hotel viable?) and at the project level (is the whole development viable?).
Cashflows are projected monthly, with annual rollups for reporting. Each cashflow stream is built from first principles: construction draws follow a configurable curve, sales velocity is modeled against absorption assumptions, rental income is built from leasing assumptions and escalation schedules, and operating expenses follow either ratio-based or line-item modeling depending on asset type.
The capital stack is modeled explicitly: senior debt, preferred equity, common equity. Each tranche has its own drawdown schedule, repayment terms, fees, and return waterfall. Joint-venture economics are built natively, including promote structures, hurdle rates, and catch-up provisions.
Qonterra calculates the full suite of institutional return metrics: project-level IRR, equity IRR, leveraged and unleveraged returns, equity multiple, yield-on-cost, cash-on-cash returns, development profit, and NPV at customer-specified discount rates. Where exit assumptions are uncertain, returns are computed across a range of exit scenarios with attribution to each assumption.
Single-variable sensitivity is automated for every key assumption. Multi-variable scenarios are user-defined, with up to one hundred concurrent scenarios runnable in parallel. Sensitivity tables show the relative impact of each assumption on the bottom line, helping prioritize where to spend additional due diligence.
Investment-committee output is generated natively, in customer-branded templates. The output includes executive summary, project description, capital plan, return summary, sensitivity dashboard, risk register, and the underlying assumption book. Output formats include PDF, PowerPoint, and direct integration with common BI tools.
Customization. The methodology above is the default. Customers regularly customize: alternative return metrics, jurisdiction-specific tax treatments, audience-specific output formats, and industry-specific modeling conventions for specialized asset classes. Methodology customization is a standard part of enterprise deployment.
The terms that show up in every institutional real estate conversation. Defined as we use them inside Qonterra — short, useful, and consistent with how the major institutional players actually use the words.
The discount rate that makes the net present value of a project's cashflows equal to zero. The most commonly cited return metric in institutional real estate. Always computed and reported in two flavors: project IRR (on total project cashflows) and equity IRR (on equity holder cashflows after debt service).
The sum of all project cashflows discounted to present value at a specified discount rate. Positive NPV means the project beats the discount rate; negative NPV means it does not. The discount rate used is typically the investor's cost of capital or hurdle rate.
The full structure of capital financing a project — typically some combination of senior debt, mezzanine financing, preferred equity, and common equity. The capital stack determines who gets paid first, who bears most of the risk, and what returns each tranche earns.
Stabilized net operating income divided by total project cost. The most commonly cited "snapshot" return metric for development projects, used as a sanity check against prevailing market yields for comparable stabilized assets.
Total cash distributions to equity divided by total equity invested. A 2.0× equity multiple means the investor received $2 back for every $1 invested. Used alongside IRR because IRR is sensitive to timing while equity multiple is not.
Annual net operating income divided by property value. Used to value stabilized income-producing properties and as a key input in exit value calculations. Cap rates move with interest rates, asset risk profile, and investor demand for the asset class.
A disproportionate share of profits paid to the sponsor or operating partner once returns to limited partners exceed a specified threshold. Typical structure: LPs receive a preferred return (e.g., 8%), then the promote kicks in, giving the GP a larger share of profits above that hurdle.
Systematic testing of how project returns respond to changes in key assumptions — typically construction cost, sales velocity, rental rates, exit yield, and timing. The output is usually a sensitivity table or tornado chart showing which assumptions matter most.
The structured assessment of whether a real estate project meets an investor's return requirements. Combines financial modeling, market analysis, capital structuring, and risk assessment. The "feasibility study" is the document; the "feasibility analysis" is the underlying work.
Comprehensive documentation for the Qonterra platform, including API reference, integration guides, and methodology specifications.
Full documentation is provided to customers under their existing access controls — including REST API reference, SDK documentation, integration guides for common data sources (Yardi, MRI, Argus), and detailed specifications for every calculation the platform performs.
Public-facing documentation excerpts and integration overview material are available on request. Contact our team for access.
Qonterra meets the security and compliance bar required by institutional investors managing trillions of dollars in assets. The platform is ISO27001 compliant, with additional certifications and security controls available for enterprise customers.
Security questionnaires, ISO27001 reports, and detailed compliance documentation are available under NDA. Contact our security team for access.