San Diego Green Construction

Tag: prefab construction

  • Taking Prefab Construction to the Next Level

    New York—Less than two months ago, Full Stack Modular announced the purchase of FC Modular’s core assets from Forest City Ratner Cos. (FCRC). Roger Krulak, CEO & Founder at Full Stack and former senior VP of prefab construction at FCRC, explained at the time that he planned to build upon the original mission of the company he worked for, known for the rise of 461 Dean St., the tallest modular building in the world. The tower, located in Brooklyn, New York, is now ready to receive its tenants.

    Krulak discussed with Multi-Housing News the details of the acquisition, his new company’s goals and the perks and challenges on creating buildings from prefabricated components.

    MHN: What details can you give us on the purchase of Forest City Ratner Companies’ core assets?

    Roger Krulak: Full Stack Modular purchased all of the assets of FC Modular (from Forest City Ratner Cos.) including a lease for 100,000 square feet of space in the Brooklyn Navy Yard plus 85,000 square feet of storage.  All of the infrastructure improvements valued at over $14 million, all of the equipment, the IP related to FC Modular High Rise modular system and a groundbreaking collective bargaining agreement with the joint building trades.

    MHN: What are your plans for Full Stack Modular? Did you set out any short term and long term goals?

    Krulak: We are focusing our efforts on multifamily developers in three market segments. Hotels, student housing and multifamily rentals because these are the ideal uses for our system. We are focused on the middle 70% of the market. We are a turn-key solution from concept to completion, including design, manufacturing and onsite construction and we have several projects in the pipeline.

    MHN: On your company’s website it is stated that modular construction is cost certain. What can you tell us about that and about cost benefits compared to traditional builds?

    Krulak: Our process allows you to develop a project meeting your program at a cost certain price. If you include all development costs, carried interest, excess general conditions, early revenue recognition, reduced onsite safety requirements, the savings can be as much as 20 percent compared to traditional construction.

    MHN: Are traditional lenders such as banks open to the idea of modular construction? Is it difficult to get financing for such a project?

    Krulak: We are working with several banks and private funding sources to provide financing for our projects. We believe that the underwriting as well as progress payments are much simplified with a modular solution. You take 80 percent of the construction cost, keep 10 percent retainage and pay 50 percent upfront for materials and 50 percent on inspected modular completion. It’s a very easy solution. Additionally, we provide UCC (Uniform Commercial Code) filings for all materials purchased to complete the modules.

    MHN: In a press release on 461 Dean, it is stated that the building has “amenities made possible by its modular construction.” What type of amenities are we talking about?

    Krulak: The amenities are not made possible by modular construction, however the entire building can be built out of mods, including gym space, yoga rooms, core elevator and stair shafts, elevator machine rooms, double height space etc.

    MHN: Tell us about Full Stack Modular’s up and coming projects.

    We have several projects in the pipeline from additions to existing rental buildings to passive rental buildings and multiple hotels for major U.S. chains.

    MHN: What is the strategy behind modular construction in general?

    Krulak: From Full Stack Modular’s perspective, we are offering a turnkey solution to developers of multifamily both public and private. Give us the land you control and your desired program and we will do the rest. When we build off-site, we can benefit from of all the advantages of manufacturing: ergonomic work environment, tighter tolerances, safer working environment, less waste, better working conditions, faster completion, lower cost than in general conditions, less neighborhood disruption, tighter construction.

    MHN: Is modular construction becoming more popular? Do you think it will ever become the norm in the business? 

    Krulak: Modular construction is becoming more popular worldwide. Projects in Australia, U.S., Singapore, New Zealand, Malaysia, China, U.K. and Germany all have active modular builders/developers. Brazil is not far behind. Singapore is mandating modular construction as a requirement for successful builders on government land as well as providing subsidies for it.

    MHN: What are the main challenges in modular construction?

    Krulak: The main challenge is that we are trying to break entrenched silos of multifamily development. Design, construction and development have long lived in different silos trying to shed risk to one or the other stakeholder. The result has been incredible inefficiencies and increased cost. Modular construction needs to break that mold and move back into a collaborative environment with shared risk. That is not only a change, it is a paradigm shift. That is the biggest challenge we face.

    MHN: Are the buildings as sustainable or as resistant as regular ones?

    Krulak: The buildings can be more sustainable and resilient than traditional construction. Building in a factory allows you to build with much tighter tolerances making passive construction much easier. The buildings are lighter and structurally more redundant than conventional construction. Being born in New York, we have not completed a design for a more seismic environment. However, initial studies say the lightness and redundancy make for easier compliance with seismic requirements.

    Image courtesy of Full Stack Modular

  • Developers Discover Greener Features Using Prefab Construction

    Developers Discover Greener Features Using Prefab Construction

    The Greene Town Center (The Greene) in Beavercreek, Ohio is a mixed-use town center, featuring upscale retail, restaurants and apartments. Completed in the fall of 2008, this $40 million, 360,000sf expansion of the town center may look like others in the Steiner + Associates portfolio, but there is one unique difference. The Greene incorporates modular construction technology that makes the building process not only greener, but more profitable. Recently The Modular Building Institute (MBI) talked with Bob da Silva, Senior Vice President of Construction for Steiner + Associates as well as Matt Canterbury, Director of Business Development for M+A Architects (architect of record) about the unique advantages of modular construction.

    Modular Delivers Profit Advantages

    For Steiner + Associates (Steiner), this was the first town center in which they incorporated modular construction techniques. According to Bob da Silva, the modular process was considered specifically because of both labor shortages and materials cost escalation. Steiner’s owner and CEO, Yaromir Steiner, wanted to investigate modular construction as a solution to these problems. Yaromir, da Silva says, exhibits a healthy curiosity for better processes and cutting edge technologies. “He’s willing to take a calculated risk and try something others may not have.”

    Matt Canterbury of M+A Architects (M+A) adds that he was not surprised that Steiner was looking at the modular method when the two companies started collaboration on The Greene. “Steiner + Associates is always willing to try leading edge processes; it’s a part of their philosophy.” Coming into the project, M+A did have some experience with modular construction—but only within single-story classrooms and offices. Because of this, they knew that the modular process would not inhibit their design.

    “It’s a delivery method that doesn’t limit our designs in any way.” Canterbury explains. The architect can design condos or apartments to normal specifications. The how of getting those individual units constructed is usually negotiated by the contractors and private developers. “We have found that if contractors have experience and a comfort level with the modular process, they are willing to use it.”

    In this case, Steiner was introduced to Champion Enterprises through the general contractor for The Greene, Corna/Kokosing. Champion is a nationwide leader in modular commercial housing and had just the experience and portfolio Steiner felt good about. Both proven leaders in multi-family commercial properties, the two developers decided to work together on the residential portions of The Greene—about 13% and 48,000sf of the entire build.

    The Flexibility Advantage Becomes Key for Developers in the New Economy

    And da Silva views the final modular build as successful. So much that Steiner is now planning to apply the modular advantage toward future town centers. At the time The Greene was built, the modular advantages for adequate labor supply and cost control were the overriding ones. “But times are different now,” da Silva points out. The flexibility modular construction affords is an even greater advantage in this economic climate. Steiner plans to build one-story retail centers with a platform on top, allowing them to bring in modular residential units at a later date. “The modular construction technique allows us to set residential above the retail much faster and with less disruption.”

    M+A also sees the economic advantage to developers. It’s a process that can deliver under tight deadlines, Canterbury points out. If you are looking at an apartment complex of 120 units that needs to be done in 9 months, modular is the best way because of the accelerated timeframe.

    The Architect’s Perspective: Lessons Learned As The Greene was the first multi-story modular project for M+A, the architects also learned some powerful lessons about in-factory construction. “We were pleasantly surprised that the coordination with Champion went so smoothly,” Canterbury comments. “The modular providers understood the big picture right away. Furthermore, we found it to be a really precise building method. When you think about how precise and flexible the process of modular building is,” Canterbury reflects, “there are many reasons to use this delivery method.”

    In fact, M+A is actively working with other modular providers and clients to offer faster construction schedules. The acceleration advantage is particularly powerful for certain markets that M+A serves so well, like multi-story residential housing and franchise retail applications. In these instances it is a matter of replicating the original design, either in multi-story fashion for residential, or from site location to site location for retail franchise.

    Modular is Greener, Period

    In the future, though, it may be the green advantages themselves that outweigh all other factors. Modular construction is simply a greener process. Although Steiner may not have considered the green advantage as the key factor at the outset, da Silva points out that they now realize they had delivered a greener build through improved use of materials and less disruption at the site. This translates into quite an advantage for a development company that “seeks to sustain or even add ‘greenspace’ to the landscape.”

    As for M+A, they were sold on the green advantages of modular construction going into this project. Canterbury points out that M+A has been aware of modular’s green advantage for several years. “The inherent advantages for sustainability result from not having to doze an entire site, but instead just enough area to crane modules in.”

    M+A has been actively promoting the greener building advantages, in addition to the acceleration features, to their clients. A smart move, considering the fact that green building is the major driving force in construction trends for the foreseeable future, as well as the one area where growth is certain for some time to come.

    Article Credit to http://www.modular.org

    Contact US Modular Home Builders – Experts in Modular Construction

    info@usmodularinc.com

    888-987-6638

  • San Diego Couple Goes with Prefab Construction

    San Diego Couple Goes with Prefab Construction

    San Diego Couple Builds Their Home Using Prefab Construction to Avoid Standard Costs

    Location: Carmel Valley Road, Del Mar Terrace

    Description: 4,000 square feet in two-story configuration on 60-foot-wide lot

    Manufacturer: Guerdon Enterprises, Boise, Idaho

    General contractor: Lusk Custom Design & Construction, San Diego

    Architect: Joseph Remick, Orinda

    Cost:

    Modules: $646,000

    Transportation and installation: $21,000

    Other costs: $350,000

    Total: $1,017,000

    Source: Lusk Custom Design & Construction

    When Cliff Hanna and his wife, Lana Le, bought a dream lot overlooking Torrey Pines State Reserve, they hired an architect to design a dream home to match.

    The trouble was that the price tag came out at $2 million.

    “The cost was way too much to build,” Hanna said. “We couldn’t afford it.”

    So the couple turned to Hanna’s father, Charles Hanna, a civil engineer who recommended a cheaper construction method: modular housing.

    This week, the results of that detour from standard, site-building construction will arrive. A caravan of flatbed trucks will deliver four modules built in Boise, Idaho. A crane will place them on a concrete foundation, constructed over the past six months, in a matter of hours.

    Then, over the next three months, Lusk Custom Design & Construction will complete a connecting structure and install the appliances, fixtures and flooring. The Hannas hope to move in by early summer.

    Total projected cost: $1,017,000. Time from start to finish: nine months.

    Compare that with the 12 months or more it takes to build a comparable custom home and it’s easy to see why modular might be the wave of the future as the U.S. home-building industry shakes off the recession.

    “The overall housing market has seen a decline,” said Tony Gacek, executive director of the National Association of Home Builders’ Building Systems Councils. “But in this decline, I think builders are learning more and more that they need to find very cost-effective, streamlined ways to produce quality homes for consumers.”

    Hanna’s house is not like the Sears kit-built homes popular in the early 20th century: Order a cottage from the catalog and it’ll be shipped in pieces for assembly. Nor is it a triple-wide mobile home that can fly apart in a windstorm or burn to a crisp in a wildfire.

    This house, contains 25 percent more lumber, making it strong enough to withstand the 750-mile journey from Idaho and the stresses that occur when the modules are lifted into place.

    From what the designers, manufacturers and builders say, modular homes are built of the same raw materials used in traditional on-site projects. The cabinetry, appliances, fixtures, flooring, paint and all other components are no different from what’s found in any tract home.

    And in the Hannas’ case, there will be some energy-saving, environmentally sustainable features, such as a solar-power system to generate electricity and bamboo flooring, that builders are touting.

    Proponents of modular housing argue that building in a factory reduces waste; protects against rain, wind and other inclement weather; and offers better quality control through constant in-house company inspection as well as the usual licensed inspectors who enforce California’s stringent building code.

    Hanna learned all this as he researched modular housing and visited the manufacturer. He acknowledged that the original, architect-designed plan might have been more attractive, but he’s content with the modular alternative, which will still include decks, patios and a 20-foot atrium bridging the modules. The price tag, of course, was the best part of this experiment.

    “We’re all looking for affordable housing, and this is one way to do it,” Hanna said.

    There are downsides to modular construction. The imagination of the architect is somewhat limited by what a factory can churn out, though Hanna’s architect, Joseph Remick of Orinda, said he was able to custom-design the second-floor modules within the limitations of what can be transported from the factory.

    Another difference is that slight changes can be made on site when building from scratch; construction drawings often differ from conditions on the ground, and last-minute adjustments are necessary. But modular units and their foundations must be precisely aligned. For the Hanna house, the modules must fit exactly onto 13 sets of 28-inch-long bolts embedded in concrete. There is only one-sixteenth of an inch in wiggle room.

    Even with all the advances in technology, only 3 percent of single-family homes built in 2008 — 23,000 out of 819,000 — were classified as modular, according to the U.S. census. That’s down from a high of 46,000 in 2002.

    But it’s no secret that most homes built these days contain modular components — from building trusses to kitchen cabinets and window frames. Every builders show attracts hundreds of such manufacturers.

    Dan Horne, spokesman for Guerdon, said his company began with mobile homes in the early 1950s and branched out into modular construction in recent years.

    “We wanted to participate in more mainstream and diversified types of modular products,” Horne said.

    He added that with Guerdon’s capacity of producing 800 homes per year, business is down about 50 percent from the peak and is dominated by multifamily military housing orders; 10 percent to 15 percent comes from custom orders, such as the Hannas’. The company employs about 130 people.

    Steve Lusk, who has spent most of his career constructing standard, site-built homes, said he hopes the Hanna house will offer a new line of business for him and other builders.

    “It’s not the first time someone has done modular housing in San Diego,” he said. “But a custom modular, we can’t find anyone to own up to it.”

    Lusk said the costs should appeal to clients who wish to go modular.

    “You’re not going to find many custom builders that will sell a custom home for under $200 per square foot,” he said. “They’re going to be between $200 and $300, depending on how nice they are.”

    The Hannas’ home will come in at about $175 per square foot, not counting the “soft costs” for planning, inspection and site work.

    “I’m convinced it’s a better way to build,” Lusk said. “It’s quicker, requires less supervision.”

    Kelly Broughton, director of the city of San Diego’s Development Services Department, said he and his staff are familiar with modular construction and agree that it offers many advantages.

    “Some countries have adopted it a lot more than the U.S.,” but it might gain popularity as more examples become available, Broughton said. He also said modular fits the city’s “green” and “clean technology” agenda.

    As for Hanna, he said he believes in modular as a way to go, but his wife, a physician, is waiting to see what the finished product feels like before she is convinced that the result is as satisfactory as a traditionally built home.

    Many a marriage goes sour when couples embark on a major remodeling or custom-home project, so speeding up the process through modular construction at least reduces the tension time.

    “We’re doing OK, but it’s definitely not easy,” Hanna said.

    The typical differences between plan and construction cannot be tolerated, since the modules have to sit exactly on the foundation as the plan specifies; 13 sets of 28-inch-long bolts embedded in concrete have to fit into the modules with no more than a 1⁄16th inch tolerance allowed.

    Reprinted from San Diego Union Tribune

    Contact your local Prefab Construction Expert:  USModular, Inc. for more information

    info@usmodularinc.com

    888-987-6638

    http://patch.com/california/oceanside-camppendleton/san-diego-couples-goes-prefab

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