Commercial Investment Real Estate March/April 2019 | Page 39

FULFILLING
PROMISE
Today’s modular multifamily construction aims
for quick delivery and cost savings.
by Sarah Hoban
J
im Young’s first experience with modular multifamily
construction in 2001 was almost his last. With today’s new
designs coupled with improved efficiency, environmental
benefits, and cost savings, however, modular is once again
drawing the attention of developers.
“At the time, modular looked like large, unattractive boxes,”
says Young, CCIM, owner of Sabot Development in Austin,
Texas. “The industry was a lot younger, and many municipalities
were not familiar with it.”
Particularly frustrating was the requirement that the units be
inspected by the municipality, despite previous factory inspections.
The inspection process slowed the project; though it went well
overall, he didn’t undertake another modular project for some time.
Fast forward to 2017, when Young walked into a friend’s office.
He was so impressed by a rendering of a modular multistory stu-
dent apartment building that he signed on as its developer. This
fall, Cheatham Street Flats in Austin will welcome its first tenants.
Like many other developers, builders, and municipalities across
the country, Young recognizes that modular multifamily con-
struction has come a long way in recent years. Manufacturers offer
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a variety of modular units built with wood, steel, or even repur-
posed shipping containers. The once-boxy look has been replaced
by stylish exterior treatments. Units can arrive on a building site
plumbed, wired, drywalled, and even furnished with appliances,
countertops, and ceiling fans.
Weighing the Benefits
Modular multifamily construction regularly realizes improved
efficiency, environmental benefits, and cost savings.
Builders and developers can complete more projects, more
quickly compared to conventional methods, says Tom Hardi-
man, executive director of the Modular Building Institute in
Charlottesville, Va. “In fact, owners can often cut months off
the construction schedule. Because the process is streamlined
and the construction is quicker, owners can occupy the building
sooner and begin generating revenue more quickly.”
Modular construction also addresses construction and labor costs.
“Urban city centers are facing real housing challenges, particularly
in terms of affordable housing, and they’re looking at any num-
ber of solutions,” says Paula Cino, vice president for construction,
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