The Current Supply Chain Environment

Posted on | by Bob Ritter

The disruptions and unpredictability of the current supply chain environment have been well documented, and unfortunately, the forecast is that these disruptions will remain with us for the foreseeable future.  While there is no silver bullet to insulate a construction project from the potential impacts, strategies can be deployed to mitigate delays caused by this problematic supply chain market.  For these strategies to be effective, though, they need to be planned early in preconstruction.

Your General Contractor should be surveying material and equipment lead times during the preconstruction process so the entire development team understands the risks and a plan to deal with them can be formulated.  One way to build around the excessive and unprecedented long lead times the industry is currently facing is to procure the materials and equipment subject to excessive long lead times earlier than typical, even before execution of the construction contract.  This will ensure...

Read More >

Design Build – We’ve Only Just Begun

Posted on | by Bob Ritter

"..white lace and promises, a kiss for luck, and we're on our way". Yes, that is the opening lyrics by Carpenters, but what a common association when most people hear the word DESIGN-BUILD. If done correctly, Design-Build can be all sunshine and rainbows; however, We've Only Just Begun!

DBIA forecasted that by 2025 design-build is anticipated to represent up to 47% of construction spending. The Douglas Company has found that our successful design-build projects have three common factors:

  • Early Involvement with The Douglas Company
  • Clear Definition of Expectations
  • Alignment between Owner and Design-Build Team

These factors are critical to a clean, fast-paced process. Our ability to influence the project's design is most appreciated and provides the best value to the owner prior to construction and issuance of subcontracts and purchase orders. The industry's increased project complexity and fast-paced schedule demands align best with the benefits provided by our design-build teams. Utilizing design-build also creates...

Read More >

The Douglas Company Proudly Announces Becoming a 100% Employee-Owned Company

Posted on | by Bob Ritter

The Douglas Company, a recognized industry-leading general contractor in commercial construction, proudly announces becoming a 100% employee-owned company through a newly created Employee Stock Ownership Plan ("ESOP") as of 2021. 

Founded in 1976 by Bruce Douglas, headquartered in Holland, Ohio, with a second office in Orlando, Florida. The Company was built by a team of hard-working, committed men and women, battle-tested processes, and a core purpose and core values. "Employee ownership complements our core values and focus on quality customer service. In fact, now that they are owners, Douglas Company employees will share our Company's financial and operational success in ways that few employees do. That means they will have an even stronger commitment to serving you. Because, as our customers succeed, so do all of Douglas Company's new employee-owners," said Peter Douglas, President of The Douglas Company

"We are excited about this important development in our business. ESOP companies have higher...

Read More >

The Importance of Pre-construction Schedules

Posted on | by Bob Ritter

Developers often think of the actual construction schedule when the word "schedule" comes to mind.  But before that, it is just as crucial that a project has a solid pre-construction schedule to even have the feasibility of breaking ground when desired.

Of course, many things go into getting to that point of starting construction. Still, when there is an understanding of the start date goal, you can back into the schedule and plot a course from where you are today and the timelines of what needs to happen to be able to hit that goal.

One of the main goals during the pre-construction phase is to assess the plans as they develop to help mitigate risks while under construction.  This requires regular communication between the owner, architect, and contractor. 

The schedule holds each member of the development team accountable for their deliverables. Owners have to make decisions on everything from HVAC systems...

Read More >

HarborChase of Shaker Heights has Broken Ground

Posted on | by Bob Ritter

The Douglas Company, an award-winning general contractor, is excited to announce that HarborChase of Shaker Heights has broken ground. The new 106,698 square-foot assisted living and memory care community is located within one of Cleveland's most affluent suburbs, just eight miles from downtown. It is the first project of its kind to break ground in this city within the past 20 years.

Co-developed and owned by Denver, Colorado-based Confluent Senior Living, co-developed and operated by Vero Beach, Florida-based Harbor Retirement Associates, and designed by RDL Architects; HarborChase of Shaker Heights will provide a mix of 108 assisted living and memory care apartments in the three-story community. This extravagant facility offers vaulted ceilings upon entering and has several in-house amenities, including a commercial laundry service, full-service commercial kitchen, exhibit kitchen complete with a pizza oven, virtual activity room, two salons, bistro, bar, a large wellness room, private...

Read More >

Supply Chain Disruptions Continue

Posted on | by Bob Ritter

As most people have experienced in the country, certain materials are tough to come by, whether in a personal or business realm. This is not a new development, but the scale of the issue has seemingly grown, and new challenges are presented in our industry every day. Some may ask, what is driving this? One of the primary factors driving this is a lot of the raw materials that we utilize come from overseas. In an article I read the other day, a record 65 ships were sitting in the ports along the West coast waiting to be unloaded, compounding an already challenging logistics industry. This is causing a lot of uncertainty for suppliers when these raw materials will be received to produce the needed components to build our projects. In the interim, demand continues to increase, resulting in the challenges upon us today.

All of our Preconstruction and Read More >

The Buzz Around “Build-to-Rent”

Posted on | by Bob Ritter

Recently, several developer clients of ours have mentioned a multi-family product type called Build-to-Rent (BTR).  The concept is to develop and build single-family home communities where the houses are rented to tenants in lieu of being sold to homebuyers.  According to Northmarq’s March 2021 report, strong consumer trends support the growth of this type of multi-family development.  Renters are growing more affluent, causing shifts in their desired types of rental homes, features, and amenities.  People also have lasting scar tissue of the housing crash of the Great Recession, which negatively impacted so many.  More recently, the COVID-19 pandemic has created a need at the top of people's shopping lists for more work-from-home space.  Also, the desire to live in less dense apartment buildings has people moving towards the BTR solution. 

BTR multi-family developments offer tenants the larger space of a traditional house to people who can’t afford the large down...

Read More >

The Douglas Company celebrates the beginning of construction on the All American of Enfield

Posted on | by Bob Ritter

The Douglas Company, General Contractor, celebrates the beginning of construction on its eighth project with the owner, Kaplan Development Group, LLC. The $12.3 million, All American of Enfield is a 55,992 square-foot, 58 unit assisted living and memory care community in Enfield, Connecticut.

Designed by EGA Architects, All American of Enfield boasts several in-house amenities, including a salon, beauty parlor, bistro, media room, and an interior courtyard. The building is wood-framed and constructed on a slab on grade over a standard spread footer/stem wall.  The exterior is finished with CertainTeed Vinyl Siding, including lap boards and "cedar" shakes, with a mix of EPDM and asphalt shingle roofing. 

"The Douglas Company team is grateful for our continued collaboration with Kaplan Development. We are excited to bring All American of Enfield to life and deliver a best-in-class project for the Enfield region," stated Alan Kluczynski, Assistant Project Manager of The Douglas Company.

The...

Read More >

What Will Happen With Construction Prices?

Posted on | by Bob Ritter

We continue to get buffeted by price increases, seemingly weekly, which puts pressure on our estimates and has a negative effect on feasibility for our clients.  Though prices are being locked in for Fall starts up North, clients have repeatedly asked me what will happen to them for their Spring starts.  It’s certainly understandable.  I’d want to know too.  Normally, I’d have a good sense of this, but I don’t feel that I have a good basis to know now.  This summer, home building continued at a brisk pace, and lumber peaked at over $1,800 per mbf.  Clients kept asking me what they should do at those prices, but this situation was unprecedented.  Most locked in, and then lumber started to come down.  Jeff Korzenic, Chief Investment Strategist of Fifth Third Bank, said earlier this summer that the best cure for high commodity prices is high commodity prices since it...

Read More >

Defining Active Adult Communities – Notes from the Interface Conference

Posted on | by Bob Ritter

Last month we wrote about how The Senior Housing Evolution Continues, specifically discussing the Active Adult concept. Last week, The Douglas Company attended an Active Adult conference hosted by Interface, where we heard from pioneers and visionary leaders in this new product. Three major conceptual questions stood out through all the sessions:

How to Define Active Adult?

While there is huge excitement about the space, there isn't a clear-cut, one-size-fits-all definition of what an "Active Adult" community really is, or for that matter, if the term "Active Adult" is going to stick. While time will probably resolve these issues, there is consensus on the place in the market - Seniors in their early 70s want to take advantage of the equity in their homes and sell them to downsize in an effort to reduce maintenance and find a new social circle. This is want-based, not need-based like other senior housing...

Read More >

HarborChase of Shaker Heights

Posted on | by Bob Ritter
Front exterior of HarborChase of Shaker Heights

 

[gallery size="large" ctmgs_gallery_layout="slider" columns="3" link="none" ctmgs_items="1" ids="4072,4073,4123,4124,4076,4082,4081,4083,4084,4085,4107,4086,4087,4088,4089,4090,4091,4092,4093,4095,4096,4098,4099,4121,4101,4102,4104,4105,4106,4110,4109,4111,4114,4115,4122,4119,3438,3439,3440,3441,3442,3443,3444,3445,3446,3447,3448,3449,3450,3451,3452,3453,3454,3455,3456,3457,3458,3459,3460,3461,3462"]

...

Read More >

The Grand Opening of the New Eastern Woods Senior Apartment Community

Posted on | by Bob Ritter

The Douglas Company, along with Pennrose, LLC of Philadelphia, Pennsylvania, and Blanchard Valley Health System, celebrated the grand opening during a ribbon-cutting ceremony of the new Eastern Woods Senior apartment community in Findlay, Ohio.

Designed by architectural firm Moody Nolan, Inc., a Columbus, Ohio-based company, the development offers affordable housing to the growing senior population in and around the Findlay, Ohio area.  Eastern Woods Senior consists of 50 senior apartment units in one three-story building, with a total square footage of 49,677. Amenities include elevator service, resident storage, fitness center, on-site management office suite, community gathering space, outdoor patio, and ample on-site parking, all within the peaceful, walkable, amenity-rich Eastern Woods mixed-use campus. The building was designed to meet “Aging in Place” design requirements and achieves LEED Silver standards to ensure energy efficiency.

"The Douglas Company is proud to see this project come to fruition and to...

Read More >

The Senior Housing Evolution Continues

Posted on | by Bob Ritter

The resilience of active adult communities during the pandemic and resulting recession has resulted in many developers, operators, lenders, and equity investors taking another look at the product and determining how it fits their strategy for future growth.

Many skeptics have become supporters after seeing the performance turned in by active adult communities through 2020.  Active adult rental properties were already among the senior housing product types with the strongest performance prior to Covid-19.  But the segment outperformed all other types of senior housing during the pandemic according to data from Senior Housing News.  Active adult communities are outpacing Independent Living and attracting a younger and healthier demographic.

At a recent Active Adult Virtual Summit hosted by The National Investment Center for Seniors Housing (NIC), they shared the belief that active adult is taking over the role that Independent Living played in the continuum of care 20 years ago.  While dining...

Read More >

Supply Chain Issues – The Impact on Construction Projects

Posted on | by Bob Ritter

Government regulations have been loosening up lately, but some impacts resulting from them are increasing as construction keeps moving forward. One specific item that comes to mind is material lead times. Items that we were accustomed to being readily available now seem to carry a 2-3 week lead time, and items that were normally 4-5 weeks have jumped to 10-12 weeks. If anyone has tried to buy any furniture or appliances for your home lately, I am sure you can attest to that. This creates unique challenges for our project teams to overcome, but our company processes have been developed to help mitigate these issues for our clients and us.

Purchasing materials early is the essential first step, but that is just the beginning. We have come to learn in the past 18 months that there is a lot of uncertainty in the supply chain industry due to constraints of...

Read More >

Construction is underway on the new John Arthur Flats affordable living community in Cincinnati, Ohio

Posted on | by Bob Ritter

The Douglas Company, an award-winning Toledo, Ohio-based general contractor, is proud to announce construction is underway on the new John Arthur Flats affordable living community located in Cincinnati, Ohio is a collaboration between neighborhood community development corporation Northsiders Engaged in Sustainable Transformation (NEST) and national developer Pennrose Properties, LLC.

The 50,195 square foot John Arthur Flats will be Cincinnati's first Affordable Housing Community for LGBTQ seniors. Designed by New Republic Architecture, the three-story development will consist of 57 one and two-bedroom apartments. Amenities include a fitness center, outdoor terrace, community space, as well as parking. Construction is scheduled to be complete in spring 2022.

"The Douglas Company is thrilled to be part of the project team working with Pennrose; they have a great reputation, and their affordable housing properties are among the best available. John Arthur Flats will provide crucial housing and supportive services to the many LGBTQ...

Read More >

Make the Numbers Work!

Posted on | by Bob Ritter

A little while back, I came across some extra marketing collateral of ours that was previously in circulation with the motto of “Make the Numbers Work.”  Some of the collateral may or may not have had an expletive gesture mixed in of “!!@!%#!!@!!”.  You get the point.

It was all good fun, and I thought it was great! 

That’s the foundation of getting a new project out of the starting blocks.  Make the Numbers Work!  Of course, a project has to pencil for it to make sense for the developer and investors. An easy way to do that is to start cutting finishes and amenities, but that will not help you compete in the market or get the rents you need.  Sometimes, it is needed to get you there, but it often doesn’t even get you a good bang for your buck. 

You should first try to attack what’s “behind the walls” to...

Read More >

COVID After-Shock

Posted on | by Bob Ritter

It has been a little over a year since the COVID 19 pandemic began and we are still feeling the after-effects of its impacts over the past year. With more of the population getting vaccinated and some states loosening restrictions, it feels as though we are getting back to normal but there are still many challenges upon us in the construction industry.

Material supply chain and volatile pricing continue to impact new starts with our Clients as many are eager to get shovels in the ground but we are challenged to hold pricing for extended periods of time like we could pre-pandemic. Then, if we are able to get the project going there are extended lead times that we are dealing with to hold our schedules, timely purchasing to mitigate further price increases and expedited submittal procurement are extremely important in our current...

Read More >

The Douglas Company celebrates with TLC Management, Inc. the completion of Blue Heron Health and Rehabilitation Community

Posted on | by Bob Ritter

The Douglas Company, an award-winning general contractor, celebrates with TLC Management, Inc. the completion of their new $34.0 million Blue Heron Health and Rehabilitation Community in Wesley Chapel, Florida.

Blue Heron Health and Rehabilitation Community features 201 residences, including 106 skilled nursing, 22 memory care, and 73 assisted living suites. Eloquently designed by Cuhaci & Peterson, the community encompasses approximately 158,971 square feet of living and communal space.  Upscale amenities include a salon, theater, game room, wellness gym, activity center, resident art gallery, library, putting green, and indoor and outdoor bistros– all conveniently located on-site.

“It was a privilege to be involved with TLC Management to build this beautiful new community that will have a significant impact on the Wesley Chapel and offers a place for seniors to call home,” said Kevin Green, Senior Project Manager at The Douglas Company. “We are particularly proud of the great work...

Read More >

Construction Costs and Operations Costs: What’s Really the Problem?

Posted on | by Bob Ritter

I am hearing different stories from clients in my discussions.  There is no doubt that occupancies in Senior Living are down.  There is no doubt that projects are requiring more equity, and equity demands a higher return.  There is no doubt that staffing is more difficult to find and more expensive.  There is also no doubt that construction prices have risen dramatically in the past six to eight months due to supply issues caused by a myriad of factors. 

A client said to Bob Ritter, our Director of Business Development, the other day that he couldn’t look at new construction projects because construction costs were too high.  I wonder if that is accurate.  My experience in owning Senior Living projects is that capital costs are a minor part of the total operating budget.  Operating costs are the vast majority.  So if construction costs go up 10%, as an example, it...

Read More >

The Douglas Company Announces Key Associates Promotions

Posted on | by Bob Ritter

The Douglas Company, General Contractor, is pleased to announce four key promotions within our Holland, Ohio office, a move that advances both our associates' professional development and the organization's growth.

"Internal succession and promotions build upon our foundation while allowing the company to evolve and grow. In their new roles, these team members will strengthen the organizational structure and effectively allow our team to focus on client satisfaction while executing our long-term growth strategy. We expect each of the key associates' leadership, experience, and vision to enhance our organization," said Peter Douglas, President of The Douglas Company.

Justin VanAtta
Project Manager

Justin VanAtta joined The Douglas Company in 2017 as an Assistant Project Manager and has since earned the position of Project Manager.  In Justin's new role, his responsibilities include managing the complete life cycle of a variety of projects and working closely with clients...

Read More >