CRE: office development, through the pack contract
The same published construction schedule as the native case, declared as a budget line, an equity commitment and a construction loan — equity first, the facility behind it, interest on the drawn balance.
Every number below is checked against an independent reference implementation on every commit — period by period, and on each metric, inside a declared tolerance. See benchmark methodology.
The case
The same ground-up office development as the One Lincoln Street case beside it: 36 stories in Boston's Financial District, funded quarter by quarter across the 2000–2003 build, with equity drawing first against a $110,738,000 commitment and a construction facility taking the balance once it is exhausted.
What differs is how it is said. The other case builds the funding waterfall from primitives. This one declares the agreements that fund the development: its budget, the sponsor's equity commitment and the construction loan.
The reference
MIT OpenCourseWare 11.431J Case Assignment 3, Exhibit 7 — the same source, the same three published drivers: a sixteen-quarter draw schedule, an 8.00% rate compounded quarterly, and the net equity commitment.
Redistributable. CC BY-NC-SA 4.0. The PDF is committed once, under the
native case's reference/, and both cases read the same figures from it.
Provenance. The expectations are taken from an independent published reference, and a copy of it is committed under this case's reference/ directory, so a reader can open it and check every asserted figure against it.
What it exercises
| Pack | cre |
| Declared | one series assumption, three contracts |
| Contracts | cre.budget_line, cre.equity_commitment, cre.construction_loan |
| Language features | contracts reading each other's lines by development, a loan on the debt machine, a line placed within its period (payment proceeds mid), interest on the loan's own opening balance |
| Conventions | equity-first funding, a facility drawing the cost the equity did not call, interest on the drawn balance with ratable draw timing |
The funding schedule stays a series-shaped assumption (assume … = curve step) in the model rather than becoming a term. A
development's funding profile is per-deal data — sixteen published quarters
here, an S-curve or a contractor's schedule on the next deal — and all three are
the same object. The budget line reads it; the equity commitment calls against
the budget; the loan draws what the equity did not fund.
The series is stated ANNUALIZED — each point is the exhibit's quarterly figure times four — and the budget line divides by periods-per-year, the same convention every annual quantity in the pack follows. On this quarterly model that divides straight back to the published number. It matters because a series is a level: a step series returns its last point on every date, so a schedule stated as per-period totals would be correct here and would fund three times the money if the same deal were run monthly.
The result
Zero difference from the native case, in all 48 cells, and model.total
and model.npv agree to the last decimal. Both cases carry the development's
cost and place every funding flow mid-quarter, as the exhibit states. Against the exhibit
itself the residuals are therefore the native case's: equity contribution and
loan draw exact to the dollar in all sixteen quarters, interest within the
exhibit's own rounding.
The quarter that proves the contract is 2001.4, where the commitment runs out mid-quarter and $29,430,000 of required funding splits into $10,522,000 of equity and $18,908,000 of debt. That split is stated nowhere: the equity calls the cost up to its commitment, and the loan draws the rest.
The delta
Nothing between the two cases. Where they ever differ, the contract is wrong: the language case is the reference, because it was validated against the exhibit first and depends on no domain vocabulary.
Against the exhibit, the deltas are inherited and unchanged — the exhibit rounds interest to whole thousands, and its stated debt-service total of 16,312,000 is the sum of those rounded quarterlies against the engine's 16,310,570 of exact ones.
Interest is paid, as the exhibit funds it from the equity budget as a
separate line. The loan states it with interest = "paid", the default; an
interest reserve ("reserve") or rolled-up interest ("rolled_up") is the
same contract with a different election.
Run configuration
{
"deterministic": {
"annual_discount_rate": 0.08
}
}Verified results
Checked period by period: 3 series across 16 periods — 48 values in all, each within ±500.0 of the reference.
cre.equity.asset.tower.contribution.sponsorcre.construction.loan_drawcre.construction.interest
Summary metrics for the base run:
| Metric | Value | Tolerance |
|---|---|---|
domain.cre.debt_service | 16,310,570 | ±1500 |