February 8, 2021 Prices for residential building construction increased at a faster pace in Q4 2020 (+2.9%) than in Q3 (+2.5%). In the fact, gain in the fourth quarter was the largest on record, reports Statscan.

Conversely, the growth in prices for non-residential building construction slowed in Q4 (+0.4%) compared with Q3 (+0.5%).

Construction prices for residential buildings were up in Q4 in all of the census metropolitan areas (CMAs) covered by Statscans survey. Non-residential construction prices increased at a slower pace in every CMA except Moncton, where they were flat.

Year over year, residential building construction costs (+6.6%) rose at 4X the pace of non-residential construction (+1.5%) in the fourth quarter, mainly because of the high demand for housing and a shortage of lumber across the country.

Lumber shortages still impacting residential construction prices

A combination of tight supply and high demand for lumber continued from the third quarter into the fourth, driving up the cost of residential building construction.

Typically, the seasonal nature of the construction sector results in less activity in the winter months and provides sawmills with the opportunity to restock their log yards in preparation for the coming year. However, shutdowns of sawmills last spring because of Covidas well as unseasonably mild weather in British Columbiamade it more difficult to harvest logs.

The resulting tight supply drove up prices for lumber and other wood (+44.0%) and softwood lumber (+78.8%) in December 2020 compared with December 2019.

The demand for residential construction in the United States and Canada also remained high, with the total value of building permits increasing 9.5% in Q4 2020.

Costs increase for all residential building types

Nationally, construction costs rose for all residential building types covered by Stascans survey in the fourth quarter.

The largest quarterly price increases were for townhouses (+4.1%) and single-detached houses (+3.8%). Due in part to the smaller usage of lumber in high-rise apartment construction compared with all other residential building types, the cost for this building type rose at the slowest pace, edging up 0.6% in the fourth quarter.

While construction costs for residential buildings were up in every CMA covered by the survey, St. Johns (+5.5%) and Ottawa (+4.7%) recorded the largest gains.

Non-residential construction price growth is minor

The growth of the cost of non-residential building construction slowed in the fourth quarter, with price increases ranging from 0.3% for shopping centres and bus depots with maintenance and repair facilities, to 0.5% for warehouses and factories.

The largest increases in construction costs for non-residential buildings were in Halifax (+1.1%) and Ottawa (+0.9%), as well as in Montreal and St. Johns (both up 0.6%).

The slower price growth in non-residential buildings was partially attributable to lower construction costs in this building type, which requires less lumber, as well as to business uncertainty and a reintroduction of tighter physical distancing measures in certain regions of the country during the recent resurgence of Covid cases.

The year 2020 in review

Nationally, residential building construction rose at a faster pace in 2020 (+3.8% versus 2.9%) compared with a year earlier, while non-residential construction costs rose at a much slower pace (+1.6% versus 3.5%).

Residential construction costs increased the most in Ottawa (+5.8%), Moncton (+4.5%) and St. Johns (+4.3%) in 2020.

Non-residential construction costs increased the most in Montreal (+3.4%), Ottawa (+3.0%) and Toronto (+2.6%), while Saskatoon was the lone CMA covered by the survey to show no price movement in 2020.

Construction costs for residential buildings rose the most for townhouses (+4.4%) and single-detached houses (+4.1%) from 2019 to 2020, while construction costs for high-rise apartment buildings (+2.3%) increased the least.

Slowdowns in shipments of construction materials, along with physical distancing measures, curtailed or temporarily halted building construction activity in the first quarter of 2020.

Although construction resumed in the second quarter in all CMAs covered by the survey, productivity on worksites declined as employees abided by increased health & safety protocols.

Supply chains continued to be disrupted throughout 2020, and lumber shortages drove construction prices higher in the wake of increased demand for new housing and renovation projects.

Outlook for 2021

Shifts in homebuyers preferences to accommodate working from homecombined with historically low interest rates and increased optimism for the reopening of the economy as the vaccine rollout beginsare factors that should continue to drive demand for housing and put upward pressure on residential building construction prices.

Lumber prices are predicted to continue rising for most of 2021, which will increase the construction costs of new homes. Homebuilders could struggle to take advantage of the demand for new housing as they scramble to obtain the lumber they need amid tight supplies.

See the original post here:
Building construction price indexes, Q4 2020 - Lumber still an issue - Electrical Business - Electrical Business

BOAT WORKS RESIDENCES

Marathon, Florida

What: 52 units of affordable housing featuring a majority of two-bedroom, two-bath apartments, but also one-bedroom and one-bath apartments and three-bedroom, two-bath apartments. Market rate homes will be developed on the oceanfront (gulf) in a separate phase. Building is three stories over parking.

Where: Corner of Louisa and 39th streets.

What used to be there: boat yard.

When: Scheduled to be complete by late summer.

How much? Rent is calculated based on household income and number of bedrooms based on rules by Florida Housing Finance Corp., a state-run entity. The units at Boat Works are intended to serve locals who earn 80% of the median income of $81,400. A two-person household earning $64,480 would qualify for a two-bedroom apartment that rents for $1,814.

How can I apply for residence? Registration is handled by the AGPM Management team and company officials say there is already a waiting list of 300. For more information, visit the office at 624 73rd Street, call 305-916-5416 or email [emailprotected].

Read the original here:
WHATS THIS? ANOTHER 50+ AFFORDABLE APARTMENTS UNDER CONSTRUCTION - Florida Keys Weekly

ANN ARBOR, MI A major housing development on a 64-acre site could bring 538 new homes to Ann Arbors north side, along with nature trails and new connections to Leslie Park.

The new community, dubbed the Village of Ann Arbor, would rise between the Arrowwood Hills housing cooperative to the south and the Northside Ridge condos to the north and west.

An initial conceptual plan calls for a variety of rental and for-sale homes, including 78 townhomes with two-car garages, 67 townhomes with one-car garages, 48 units of townhomes over flats, 45 single-family homes and 300 apartments.

Bloomfield Hills-based Robertson Brothers Homes is teaming up with Lansing-based DTN Management Co. on the development off Pontiac Trail and Dhu Varren Road.

They presented initial plans to neighbors during a virtual Zoom meeting Monday night, Feb. 8.

Our vision for the property really is more of a village type of concept, said Tim Loughrin, Robertsons land acquisition director. What were envisioning is a wide mix of housing options for all ages and stages of life.

As for pricing, townhomes could start in the $200,000s while the single-family homes may start in the $300,000s, with upscale apartments priced at about $2,000 per month on average, according to the development team.

A closer look at the mix of housing types included in the Village of Ann Arbor conceptual plan.Land Design Studio courtesy of Robertson Brothers Homes

Housing units could range from 684 to 3,000 square feet overall, including everything from one- to five-bedroom units, Loughrin said, assuring residents they would be very high quality. A lot of the homes would be family-oriented, he said.

The apartments would have lots of amenities and would be designed to look like houses, the development team said.

The conceptual plan shows a small dog park, an outdoor barbecue area and grassy outdoor seating area within the apartment community, plus an outdoor pool next to a community clubhouse, which could include amenities such as a fitness center/yoga studio and work stations.

The project, while within the citys ultimate borders, involves annexing a township island from Ann Arbor Township into the city and zoning it for residential development.

That process could take several months, Loughrin said, predicting the development could start in 2022 or 2023 with approvals from the city and state.

24 Ann Arbor developments to watch in 2021

The development team plans to seek brownfield tax incentives for an environmental cleanup of the site.

Part of the site used to be an old city landfill up until about the 1950s, and another part was a sand and gravel operation that was heavily mined in the 1920s and 30s and later filled with mainly construction-type debris, Loughrin said.

Theyre planning to leave the landfill area, which is filled with household waste and now nicely treed over, as a nearly 10-acre community woodland park with trails connecting to the adjacent Leslie Park, Loughrin said.

The former gravel pit area is where there would be some cleanup before homes are built on top.

There are environmental concerns that were working through with our environmental consultants, Loughrin said.

The site is across from two new developments taking shape on Pontiac Trail: the North Sky project by Pulte Homes, which includes 139 single-family homes and a four-story, 56-unit condo or apartment building, and a 682-bed apartment complex called The One targeting University of Michigan students.

The Village of Ann Arbor plan shows access drives from both Pontiac Trail and Dhu Varren, giving the public new ways to access Leslie Park by cutting through the development.

There also could be a connection for pedestrians and cyclists to the condo neighborhood to the north via Hunley Drive.

There will be multiple open space areas and plenty of new neighborhood connections that will connect Olson Park all the way through Leslie Park through the development, and this would include biking and walking trails, Loughrin said.

The primary concern of neighbors who spoke Monday night was the potential for more vehicle traffic, as well as more people walking and cycling on their streets, including people walking dogs to and from Olson Park, and the need to ensure safety.

Some suggested doing more to coordinate plans with the other neighboring developments, including configurations of driveways, crosswalks and bus stops.

James Adams, who lives in the Dhu Varren on the Park neighborhood on Leslie Park Circle, raised the issue of traffic to and from Leslie Park via his private street off Dhu Varren.

Development team representatives said they think the new Village of Ann Arbor development will actually help with that by giving people more ways to come and go from the park, and many coming up Pontiac Trail will be able to take a straight shot over to Leslie Park through the new development.

There are several more layers of review to go and traffic studies will be done, the development team noted.

With hundreds upon hundreds of new housing units being built in the area, several neighbors said theyre hoping to eventually see some new retail built so they can have a neighborhood store. Thats something they agreed is missing.

As for the level of housing density proposed, Loughrin said its in line with the citys master plan for the area, which calls for 10 units per acre. The Village of Ann Arbor would have 8.4.

Robertson has constructed over 7,000 homes in southeast Michigan over the last 75 years, with about 100 different developments, and 97% of homebuyers are willing to refer their friends and family to Robertson, Loughrin said.

The company has 15 more residential developments underway and about 1,200 more homes in its land acquisition pipeline, Loughrin said.

The company focuses on infill developments that create vibrant communities, rather than building out in corn fields, he said.

DTN, founded in 1972, manages about 120 properties and has acquired or developed over 8,000 residential units, plus about 1 million square feet of commercial space, Loughrin said. DTN would manage the apartment community.

Julie Roth, leader of Ann Arbors Solarize Program, asked the development team about possible sustainability features to help meet the citys carbon-neutrality goals and whether there could be solar panels and a district geothermal loop tapping into the earths energy to heat and cool the entire development.

The development team has been in talks with the citys sustainability office and the project will strive for several green-energy initiatives, Loughrin said, mentioning the possibility of having all-electric buildings, for example.

As far as geothermal, the team would have to work with environmental consultants and engineers to see if thats possible, he said.

Parking spaces for all units would be wired for electric vehicle chargers, the development team said.

Following Mondays meeting, next steps in the process include the developer finalizing and submitting a site plan to the city that will be reviewed by city staff and then eventually go through Planning Commission and City Council for approval.

MORE FROM THE ANN ARBOR NEWS:

Big zoning changes on the horizon could allow more housing in Ann Arbor

Developer aims to save Ann Arbor oak forest from becoming a subdivision

Ann Arbor spending $1.5M to add 3.8-acre wooded area to city park network

Expecting senior population boom, Ann Arbor officials OK new housing for older adults

Hybrid learning information sessions for elementary students being hosted by Ann Arbor Public Schools

See the original post:
538 new houses, condos and apartments proposed on Ann Arbors north side - MLive.com

A new seven-story building is planned for Reily Street in Harrisburg on a 1.01 acre site near the future Federal Courthouse.

KevGar Holdco, which is owned by Kevin Baird and Gary Nalbandian, and 400 Reily Street Management, plans to develop the building that will include commercial space for a 23,000-square-foot grocery store, an 8,000-square-foot restaurant and coffee shop, a 1,500-square-foot office; 85 apartments; and an approximately 500-space parking garage.

The grocery store would have an outdoor seating area and bike racks will be installed as part of the project.

The building would replace four buildings on Reily Street, that are all more than 100 years old, according to Dauphin County property tax records. Those buildings would all be demolished. The buildings include a 1,784-square-foot structure at 422 Reily St.; a 1,476-square-foot structure at 430 Reily Street, a 1,920-square-foot structure at 432 Reily St. and another 1,248-square-foot structure.

The project was brought before the Harrisburg Planning Commission on Wednesday night via Zoom to request various zoning relief from use and development regulations required for the construction of the development, which unanimously recommended by the commission.

The Federal Courthouse is currently under construction.

The Harrisburg Housing Authority also plans to build a new five-story, 50-unit affordable housing apartment building nearby in front of Lick Tower on Sixth Street.

--Business Buzz

You can follow Daniel Urie on twitter @DanielUrie2018 and you can like him on Facebook.

See the original post here:
7-story building with parking garage, restaurant and apartments to be built near new courthouse in Harrisburg - PennLive

Natale also hopes to have the first two of the three apartment buildings ready for occupancy by the end of 2021, with the third coming online in spring 2022, Corrao said.

But this depends on receiving tax breaks from the Amherst IDA, Natale said at the Jan. 25 Village Board meeting.

That's because labor for the project is getting more expensive and harder to find thanks to the pandemic and the cost of lumber and other building materials also is going up,according to Natale. Each of the three apartment buildings likely will cost an extra $250,000 to construct for those reasons, Natale said.

The apartment buildings represent about half the estimated $30 million cost of the project, Corrao said. The developer calculates the apartments now will cost $16 million to $16.5 million, with an unknown increase in the cost of the town houses still to come.

The tax incentives won't fully cover this increase but will help put the project back on solid financial footing, Natale told Village Board members.

Only the apartments would be eligible for the incentives, which would take the form of sales, mortgage recording and property tax breaks.

And the tax breaks, if approved by the IDA, only would apply to future investment in the project.

A payment in lieu of taxes, or PILOT, agreement would be the most lucrative piece of any tax incentives.

See the article here:
Developer of in-progress $31M housing project in Williamsville seeks tax breaks - Buffalo News

The citys permitting process has four main stages: pre-application, land use review, building permit review and then, once the permit has been issued, construction. There are currently four projects in the pre-application phase, totaling 484 units, plus three in the land use stage with a total of 507 units.

Four more projects are in building review, with a combined 457 units, and 11 projects are actively under construction or have permits issued. Thats 2,339 units in the pipeline for the next couple of years on top of 949 units that have already been built downtown since the adoption of the 2007 plan, Eiken said, in total representing about 75 percent of the target for 2027.

Commercial development is also showing signs of increased growth, Eiken noted. The city has only added a few major office buildings since the recession, he said the Hudson Building, Hurley Tower and the Murdock building at the Waterfront but several projects currently in the pipeline will probably double or triple the amount of new office space added in the post-recession era.

The city doesnt have a hard target for office development like it does for residential, Eiken said, but it all serves the same goal.

A lot of it is more in the intangible area of adding vitality to the downtown, he said. By bringing more residents to the downtown as well as workers, theres more support for the local businesses, and as we know, the more rooftops we get in the downtown, the more likely it is that well get a grocery store, so its really important that we get income levels up but also the number of units in the downtown.

Continued here:
Downtown Vancouver is on the rise - The Columbian

CLEVELAND, Ohio The ground shook. Debris rained down as the sharp teeth of an excavator bucket chewed at the concrete innards of a three-story, brick-faced building. A man in heavy work clothes and a hard hat sprayed water from a hose to keep the dust down.

That was the scene Monday as contractors began tearing down the former Cuyahoga Metropolitan Housing Authority Big 8' apartment complex on West 25th Street in Ohio City, a block south of Detroit Avenue.

After more than a decade of planning, dreaming, designing, and grant-writing, the demolition marked the first highly visible step toward the creation of a 23-acre park at Irishtown Bend overlooking the Cuyahoga River and the downtown skyline.

Every bite of the excavators bucket opened up a bit more of the view.

Once the site of a 19th-century Irish immigrant settlement, Irishtown Bend is a sodden, unstable, weed-covered slope on the outer curve of the Cuyahoga River opposite Columbus Road Peninsula, with a few buildings on top, along West 25th Street.

For decades, the hillside has threatened to avalanche into the river, an event that could rupture a major sewer line and block ore boats from reaching steel mills upstream.

The Port of Cleveland, Cleveland Metroparks, LAND Studio, Ohio City Inc., the City of Cleveland and other nonprofit organizations and government agencies have joined forces to stabilize the slope, rebuild waterside bulkheads, and create a park with trails zig-zagging down to the water.

Other partners include the Northeast Ohio Areawide Coordinating Agency (NOACA),

West Creek Conservancy, CMHA, the Northeast Ohio Regional Sewer District, and the Northeast Ohio Coalition for the Homeless.

Its a pretty monumental day,' said Tom McNair executive director of Ohio City Inc. Its an odd thing in our business where you literally spend years working making things happen. To reach a point where you can see actual, tangible progress on a project is pretty incredible.

McNair and other advocates have long described the Irishtown project as a gigantic two-fer, with numerous benefits to communities and businesses.

Safeguarding the slope would protect a $3.5-billion shipping industry that serves 20,000 jobs in the region, according to information attributed to the Port of Cleveland on LAND Studios website.

The park also has the potential to become one of Ohios best public waterfronts, with trails connecting it to Lake Erie at nearby Wendy Park on Whiskey Island, and to the Towpath Trail, which links Cleveland to the Cuyahoga Valley National Park, Akron, and points south.

The northernmost five miles of the Towpath, reaching Canal Basin Park opposite Irishtown Bend, are scheduled for completion this summer.

Other nearby trails nearing completion this year include the 2.25-mile Red Line Greenway, which will intersect the Towpath at Columbus Road at Franklin Boulevard, and reach deep into the West Side.

The Irishtown Bend project is also likely to help spur residential redevelopment on the citys West Side, where a reverse migration after decades of white flight has brought an influx of new residents.

New and upcoming projects in the neighborhood include the 158-unit Church and State apartment building at Detroit Avenue and West 28th Street, and the 10-story, 288-unit Intro apartment building at West 25th Street and Lorain Avenue, which bills itself as Americas tallest timber-framed building.

McNair said the project to stabilize the Irishtown slope and build the park has so far attracted roughly $40 million in grants and donated property.

The funding includes $9 million awarded for the project in 2019 by the U.S. Department of Transportation through NOACA for slope stabilization.

Linda Sternheimer, the director of planning and urban development at the Port of Cleveland said the agency hopes by this fall to complete engineering plans for stabilization of the slope and to start construction by next winter.

NOACA, meanwhile, has identified $3.3 million to extend a half-mile section of the Cleveland Foundation Centennial Lake Link Trail across the lower edge of Irishtown Bend along the river, which will connect to already completed sections leading north to Whiskey Island and south to the Towpath.

Cleveland Metroparks said the trail link could be finished as soon as 2024.

To pay for the acquisition and demolition of the CMHA apartments and a nearby former CMHA office, which will also be demolished soon, LAND Studio obtained a $1.4 million grant from the Ohio Public Works Commissions Clean Ohio Conservation Fund.

Cleveland Metroparks is leading the demolitions. The two buildings have been vacant for nearly a decade.McNair said the Big 8 building, a long, rectangular, three-story structure, took its name from its role in housing families with up to eight members.

Various plans for the transformation of Irishtown Bend have been underway at least since 2006. It was then that nonprofits including ParkWorks, a predecessor of LAND Studio, initiated discussions about the area.

In 2007, Michael Christoff and Bradley Fink, two then-recent graduates of Kent State Universitys College of Architecture and Environmental Design, organized a low-cost international design competition to brainstorm ideas for a future park on the bend.

Two years later, ParkWorks and other organizations completed a Flats Connection Plan,' using part of a $740,000 grant from the Gund Foundation. Many of the trails envisioned in that plan have been built or are close to being completed.

In late 2009, the Trust for Public Land, a national nonprofit land conservation organization based in San Francisco, announced it had closed a $3.2 million deal to preserve 1.3 miles of abandoned rail bed on the west bank of the Flats for a future trail network.

In 2014, the Cleveland Foundation announced it would devote $5 million toward building those trails, most of which are now complete or soon will be, except for the Irishtown Bend section.

In 2017, LAND Studio, Ohio City and partnering agencies unveiled the first conceptual plans for the new park on the bend. Those plans continue to evolve in synch with the Ports work on engineering the stabilization of the slope.

We know theres a long way left to go with this,' McNair said. But to reach the point where we finally see buildings coming down and opening up the viewshed so people can see whats so exciting, is really special.

Continue reading here:
Demolition in Ohio City signals big visible first step toward creation of park at Irishtown Bend - cleveland.com

Plymouth-based affordable-housing developer Dominium announced Friday it has closed on financing for two apartment buildings on the former Kmart site and the adjacent vacant Signal Hills Bank property in West St. Paul.

The $124 million project at Butler Avenue and South Robert Street will be the single most costly residential project West St. Paul has ever seen, according to the city.

The city council in September gave Dominium the OK to build the two U-shaped buildings, which will be adjacent to the Signal Hills Shopping Center. The council also agreed to give the developer $5 million in tax-increment financing funds over 16 years.

One building Hilltop at Signal Hills will be four stories tall with 146 units of workforce housing. Legacy Commons at Signal Hills will be five stories with 247 units of independent senior living. The buildings will offer one-, two- and three-bedroom homes units.

Dominium is excited about the opportunity to create 393 units of affordable housing to the local senior and working communities, Nick Andersen, vice president and project partner at Dominium, said in a prepared statement. West St. Paul is an area where there is ample demand for affordable housing, and we look forward to filling that need.

City officials long have considered the northern part of the shopping center property and its expansive parking lot underused and ripe for redevelopment. Their desire to see it redeveloped was bolstered in late 2016, when Sears Holdings Corp. closed the Big Kmart. Signal Hills Bank has been closed for nearly two decades.

Besides the TIF money, Dominium also secured a Freddie Mac Forward Tax Exempt Loan serviced by real-estate finance company Greystone, a construction loan through America First Multifamily Investors and tax-exempt bonds and 4 percent affordable housing tax credits through the Dakota County Community Development Agency.

Continued here:
Developer closes on financing for $124M apartment project in West St. Paul - TwinCities.com-Pioneer Press

Renters have gravitated toward larger apartmentsas they have spent more time at home over the last year, a trend that is beginning to influence the way developers think about unit sizes in their future projects.

An apartment in Mill Creek's Modern on M building in Southwest D.C.

Before the coronavirus pandemic,new apartment projects had been trending toward smaller units, as many renters wanted more affordable options and cared more about neighborhood amenities than unit size. But now those neighborhood amenities have been closed or limited for nearly a full year, andbetween working from homeand staying in at night, renters have spent much more time in their apartments than they did before the pandemic.

"Micro-units was the buzzword. It's never going to happen again," Morgan Properties principal Jason Morgan said Jan. 28 on theBisnow Multifamily Annual Conference digital summit. "That really has shifted, and now it's more about space."

Mill Creek Residential Executive Managing Director Sean Caldwell said he had begun to see a shift toward larger units before the pandemic, driven by empty nesters renting apartments.

"You go into the pandemic and that acted as an accelerant to allow the opportunity for people to look for more space," Caldwell said. "So it's really multiple things, not just pandemic-driven, that is having us look at average unit sizes that are slightly bigger."

Caldwell said studio units tend to perform well when apartment demand is strongest, with the competitive renter market driving cost-conscious people to settle for smaller, cheaper units. But that is not the case today.

Class-A Apartment absorption inD.C. last year was down 75% from 2019, and the city's vacancy rate rose from 4.9% to 10.3% over the course of 2020, according to Delta Associates. Rents for Class-A apartmentsacross the D.C. Metro area fell by 10.2% last year, the largest decline Delta Associates has recorded since it began tracking the marketin the 1980s.

"There are many deals, even in millennial locations, where they're having trouble moving their studios at all right now because of the pandemic," Caldwell said. "If I'm doing a mix today, I'm certainly going to have less studios than I would have a year ago, and I would look at more two-bedrooms and contemplate three-bedrooms in the right location."

Mill Creek has one apartment project in the planningstages in Northwest D.C. for which Caldwell said it is increasing the unit sizes. He expects the average apartment will be around 1K SF, with an emphasis on two- and- three-bedroom units.

Projects that delivered during the pandemic didn't havethe luxury of changing their unit sizes.

"Once youmake your floor plan mix, it's very difficult to make any changes. It's extremely costly virtually impossible. " J.P. Morgan Asset Management Managing Director Allina Boohoff said on thedigital summit. "There have been plenty of situations where you make the decision that at the point in time, [the market] is short on studios, but by the time you deliver, everybody else delivered studios, and you can't lease them."

An apartment at WashREIT's Trove building in Arlington, Virginia

Last year, WashREIT welcomed its first residents to its new 401-unit apartment building on Arlington's Columbia Pike corridor, with the project deliveringin two phases in February and October.

Thedeveloper designed the building, branded as Trove, with more studio apartments than its typical projectbecause it saw thatthe submarket was lacking the smaller units. But then the pandemic began to impact the market, and renter demands shifted.

"When I look at my lease-ups, the one-bedroomand larger units are flying off the shelf and the studios are sitting," WashREIT Managing Director of Multifamily Ed Murn said on thesummit.

Murn,in an interviewwith Bisnow Friday, said 25 of the building's 49 studios have now leased, adding that "it's not killing us."

He said WashREITisn'tmoving away from studios for future projects because the unitsare attractive to renters looking for affordable options. But he said he does expect theaverage size of new apartmentswillbe larger than it was before the pandemic.

"The pendulum had swung so far to smaller units," Murn said. "I do think that the square footage is going to be rethought by some developers and you'll see the average square footage go up."

Bisnow/Jon Banister

Clockwise from top left: JPMorgan's Alina Boohoff, CBRE's David Webb, WashREIT's Ed Murn, EYA's Aakash Thakkar, Mill Creek's Sean Caldwell and Neighborhood Development Co.'s Adrian Washington.

But increasing unit sizes comes with drawbacks for developers. Having largerunitsmeans they can fitfewer units in the building and will bring inless total revenue. Studio units, while the cheapest for renters, are cash cows.

"The challenge everyone's going to tell us is the cost and being able to get that pro forma to work, because the studio units pay the highest price-per-square-foot and help the overall pro forma," Murn said on the summit.

Part of the reason developers had been moving toward smaller units was so they could maximize revenueasconstruction costs have been rising,Moya Design Partners Design Principal Federico Olivera Sala, an architect who works on apartments, said in an interview.

"Units are more price-driven, and when the cost of construction goes up, they tend to get smaller and smaller, not bigger and bigger," he said.

Hickok Cole Director of Housing Laurence Caudle said construction costs haven't decreased during the pandemic, so cost is still a driving factor for unit size decisions.

"It seems that construction costs haven't really gone down in all this, so that is still a huge financial factor as clients are planning these buildings," Caudle said. "They need a certain number of units to make the numbers work."

Sala saidhe doesn't expect a major change in unit sizes, but he thinks the percentageof studios within new buildings may come down from around 15% to around 10%.

"What they're doing now is junior one-bedrooms as an alternative for studios," he said. "That bedroom typically doesnt have a window, but at least you have your own space you can enclose, and keep your messiness under control, and then you have your living room and public area of the unit more tidy."

Neighborhood Development Co. CEO Adrian Washington said on BMAC he thinks the long-term effects of the remote work movement will push developers to increase unit sizes.

"I think people have seen the advantages of working from home and will do it a bit more than before," Washington said. "There will be subtle shifts in adding more space, more outdoor space. That will be with us for the long term."

Evendevelopers that have already delivered projects, or those who don't want to increase unit sizes for cost reasons, are finding ways to cater to remote workers.

A built-in desk for remote work in Jefferson Apartment Group's J Linea building in D.C.

Caudle said he is still designing new projects downtown with small units, because somedevelopers can't afford to reduce their unit count. But he said unit size has been discussed much more frequently during the pandemic, and those developers thatdecide against larger units are finding ways to make their apartments more flexible.

"You can't afford to build bigger units, so we're just going to have to make the current square footage we use look bigger with more flexibility, and be thoughtful about how we space plan these units," Caudle said.

At Jefferson Apartment Group's J Linea, a building Hickok Cole designed that deliveredin June, units come with built-in desks for remote workers.Caudle said the firm is also designing units with dedicated spaces for home workout equipment.

"When we space plan the unit, the way we position kitchens, or the living room area or bedroom, we're identifying a place where you could put the yoga mat, where you could put the stationary bike, and the unit will still lay out and live with more flexibility," Caudle said.

Urban Atlantic Managing Partner Vicki Davis said on BMAC that her company is looking at ways to rearrange units to cater to remote workers, such as turning walk-inclosets into home offices.

"We're experimenting with our product to see what's going to work in the future," Davis said. "A lot of people are working at home, and there are a lot of opportunities for how do we create more flexibility in the space so people can use that creatively."

Follow this link:
Apartment Developers Increasing Unit Sizes For New Projects In Response To Pandemic - Bisnow

NORFOLK, Va. (WAVY) In the 1960s, Bishop D. Lawrence Williams of the Church of God in Christ had a dream. In the town that staged Massive Resistance, rather than integrate schools and the birthplace of the racist poll tax, Williams dreamed of a high-rise apartment building to house the City of Norfolks elderly residents who were in financial need.

It was a bold plan that was met with pushback, but his dream came true when the 150-unit, 11-story, COGIC High-Rise building opened in March of 1974, not far from the historically Black Norfolk State College, now Norfolk State University, and the historically-Black Booker T. Washington High School.

Pastor Toney McNair, now vice president of the COGIC High-Rise Board, has a gleam in his eyes when he flashes back to that day when the first proud residents entered their deluxe apartments in the sky.

That was a most exciting time after knowing what Bishop D. Lawrance Williams had to do to get to that point. We were surprised but blessed to see that day, said McNair.

Lemuel Williams was also on the front lawn on that historic day and he has been there ever since as the buildings sole manager for 47 years.

This is the first senior citizen high-rise in the whole state of Virginia and we were operated by African Americans, said Williams with pride.

Over the years, portions of the 150-unit building have been upgraded to include a modern hair salon, a computer center, and professional offices. In two weeks, crews will begin an $11.7-million top-to-bottom renovation. It will include a new roof, new windows, a new facade, plumbing, new heating and air conditioning systems, and new kitchens.

The city and state are pitching in for the funding.

We had to use tax credits from the state of Virginia. They allotted tax credits for low-income housing so then the housing authority issued us bonds for financing, said Williams.

Because of the pandemic, extra precautions will be taken to protect residents once construction crews arrive. Anyone entering the building must stop at a temperature-check station for screening and construction workers must use designated entrances and exits.

Temperatures will be checked, one designated elevator will be used We have an exit in the back, so we have that all in place. Every morning, temperatures will be checked, just as we do now, said Williams.

Starting at the top, the building will be renovated two floors at a time with residents moved temporarily to hotel-style apartments while improvements are made to their units.

Currently, the building has an 18- to 24-month waitlist for new tenants. Veteran manager Williams says the demand only underscores the need for Norfolk officials to pave the way for the construction of more affordable rental units for senior citizens.

The renovation is expected to be completed by New Years Eve 2021.

Continue reading here:
A makeover for Norfolks deluxe apartment in the sky - WAVY.com