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More move to modular construction to mitigate costs, but it’s not the solution for every project.

In an effort to shorten construction timelines to cut down on costs and find creative ways around the shortage of skilled labor, multifamily developers have embraced the possibilities of modular construction.

But as with any new technology, there are still a lot of pitfalls and issues to work out before it becomes a solution for everyone — and it is not a solution for every project.

The move to modular is being driven by a combination of desperation and fear of the future, Panoramic Interests owner Patrick Kennedy said last week at Bisnow’s Multifamily Annual Conference NorCal in San Francisco.

“Conventional methods seem untenable in many circumstances,” he said.

Ultimately, construction costs will just get higher and more developers across markets will look at modular to address costs and the labor shortage.

 

 

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Mayor wants to lure modular housing factory to SF to provide both homes, jobs

As San Francisco officials continue to scout locations for a factory that can churn out modular housing units, Mayor London Breed is lining up the city to be the first customer.

Breed is expected to announce Monday that the city is prepared to spend $100 million on hundreds of modular apartments that would grow the city’s stock of affordable housing.

Who will run the modular housing factory won’t be known for some time, though the leading plan is to seek a private operator on city-owned or city-leased property. And even after a site is selected, it will take years to get a factory up and running.

But Breed and other officials hope the early — and sizable — promise to buy will entice interested operators to set up shop in San Francisco.

Read more on SF Chronicle

Modular units make their debut at Oakland housing project

Modular units are being installed at Coliseum Connections in Oakland.

The $53M project, developed by a JV of UrbanCore and Oakland Economic Development Corp., will create 110 mixed-income units on a 1.3-acre Bay Area Rapid Transit-owned parking lot ground-leased to the JV.

The modular units were built by Guerdon Enterprises out of Boise, Idaho. Completion of the modular unit placement is expected on June 29. The project is expected to be completed in January when occupancy also is expected to begin.

Coliseum Connections is one of a handful of modular projects in the works or being planned in Oakland. Panoramic Interests plans to build over 1,000 units in West Oakland next to BART, and RAD Urban is planning two high-rises from steel modular units.

The project at Snell Street and 71st Avenue will have 55 market-rate units with rents ranging from $1,900 to $2,400 for households earning 80% to 120% of the area median income; the other 55 units will be affordable with rents from $1,100 to $1,600 for households earning 50% to 60% of the area median income.

 

Read more on Bisnow

 

 

Modular construction to be used in high-rise housing in Oakland

Oakland will soon have the tallest prefab modular high-rise apartment complex in the country.

RAD Urban is pushing forward with plans to build two 29-story high-rises with 200 units of housing using steel-framed modular units.

Unlike projects built with wood-framed modular units that top off at mid-rise level, projects built with steel-framed modular units can reach much higher, RAD Urban Senior Vice President, Construction and Operations Jason Laub said.

Modular isn’t new to construction and it has been around for decades, Laub said. Modular construction and other emerging construction technologies will be discussed at Bisnow’s upcoming Oakland Construction and Development Update! June 14.

The increased costs of construction has caused more people to look at modular as a solution and cost savings, Laub said.

“Developers are increasingly not able to make projects pencil,” he said. “We need to … look for creative technologies to advance the industry and lower the cost to build and deliver housing.”

Steel modular construction saves 20% on construction costs and time to completion compared to conventional stick-built construction.

Modular construction is quickly becoming an alternative to traditional construction to save time and money throughout the Bay Area.

 

 

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