Capital Investment Remains Strong in the Active Adult Space

Some developers and investors are unsure about committing to new senior living developments amid rising construction costs and interest rates, while others remain bullish on building new communities figuring that demand will be outpacing supply for the foreseeable future. I have even heard from some clients that they really push to get new developments going in this environment when other potential new projects may be holding off which gives them a leg up in a given market. 

One segment that continues to gain steam is active adult according to a recent article in Seniors Housing Business’ April Edition. Active adult communities target those 55 years old and older that are ready to rid themselves of all things associated with home ownership, but are young and healthy enough that they don’t require assistance with daily living activities. These communities are not as labor- or service-based as an assisted living community because they...

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Protecting wood framing during construction provides peace of mind

As we move into the rainy season, it’s important to revisit best practices of protecting wood from the elements during construction. Previously, we used to rely on just-in-time deliveries which would limit the amount of time our framing materials were subject to the weather prior to being covered up. With today’s market environment, we find ourselves ordering materials early and storing them on site so that we can be productive as we start building and not run out of material along the way. This has led to lumber being stored for longer periods than we are used to.  It’s important that this is taken into consideration as we construct our projects and that we don’t allow deterioration of our building products to occur. 

First, develop a plan early to deal with these issues in order to reduce the risk of mold and product deterioration. Ensure that your storage area is well...

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Good News!

I thought I’d write a blog about some good news, at least for multi-family developers.  No, costs aren’t coming down, nor are interest rates.  But rents for multifamily are going up!  According to rent.com through April 2022 apartment rents nationwide for two bedroom apartments are up 22.8% in a twelve month period.  In some areas that are close to us they are up even more.  Orlando rents are up 38.2%.  Cincinnati is 37.8%.

So while costs are up and interest rates are threatening to rise, rents in many areas more than make up for this, creating opportunity.  Rent.com goes on to say that the shortage of supply coupled with increasing demand and increasing inability of people to purchase homes is causing this phenomenon.

Good news for multifamily developers.  

Peter Douglas

President

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“IT’S TOUGH TO MAKE PREDICTIONS, ESPECIALLY ABOUT THE FUTURE”
– Yogi Berra

Everywhere I go people are asking what’s going to happen with construction prices, and they are right to ask.  I visited with a prospective client this month and he told me that construction prices on his prototype increased 46% in two years, which was shocking to him and a little surprising to me.  We are tracking prices in our Florida office and our records indicate costs are up 30% in 14 months, 2% per month, so I guess I shouldn’t have been surprised.  Everywhere we look subcontractors are backing out of quotes and/or raising prices, and even once under contract don’t always honor prices.  Materials and labor availability is a whole other issue.  It’s hard to believe these increases can continue, but I don’t see any signs of relief. 

The above doesn’t make our jobs any easier or more enjoyable.  We hate giving bad news to our clients on costs, but...

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Driving Rents With Amenities

The multi-family market has certainly evolved over the last several years. From the types of amenities renters demand, to an influx of new single family build to rent communities.  Not to mention the changing renter demographic.  While millennials make up one of the largest rental cohorts, the age 55+ Baby Boomers are selling their homes and opting for a more convenient lifestyle.

According to Forbes, in the last decade, the multifamily market has experienced hyper growth. Even during the pandemic, 2020 saw a 50% increase in multifamily units, compared to that of 2019. Rents in multifamily housing markets have continued to climb.  Yardi Matrix reported in February that year over year rent growth increased 15.4% and occupancy rates of 96.9%, surpassing the previous record of 96.5% in 2000. 

Today’s renters are demanding more and different amenities.  This includes everything from storage areas or lockers for packages, trash valet services, community dog parks...

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The Buzz Around “Build-to-Rent”

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...

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Construction is underway on The Sagefield multi-family residential development in Jacksonville, Florida

The Douglas Company, an industry-leading general contractor, announces that construction is underway on The Sagefield, a new multi-family residential development in Jacksonville, Florida.

The Developer, Chance Partners, LLC, selected architectural firm Dynamik Design Partners, an Atlanta, Georgia-based company, to design the 274,590 square-foot multi-family community. The Sagefield will include 234 one-bedroom, two-bedroom, and three-bedroom units in two 4-story apartment buildings and two 2-story carriage homes with tuck-under garages.  The architecture will feature a contemporary farmhouse design, with gabled rooflines, vertical siding, and a dark red, charcoal, and white color scheme. Apartments will feature stainless steel appliances, granite countertops, smart home technology, sleek wood-like flooring, 10-foot ceilings, and upscale finishes.                         

Generous community amenities will include a clubhouse, co-working space, a 24-hour fitness center, e-scooter and bike share, a resort-style pool, an outdoor kitchen and fire pit, a pet spa, and a Starbucks® coffee bar. The landscaping surrounding the community will complete the...

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Getting the Right Team in Place

Due to the ongoing impacts of COVID-19, some new projects struggle to secure the necessary capital stack to move forward.  This has been more of an issue in the senior living segment than the multi-family segment; the multi-family space has remained resilient during this challenging year in regards to financial backing for new construction.  In speaking with our friends in the debt and equity circles, the money to fund new ground-up senior living projects is getting much more selective, but I am still being told “the good deals/projects find a way to get done,” that is positive to hear.

In this environment, now more than ever, developers need to have the best teams possible in place to support a successful project.  This of course, includes their general contractor, architect, and operator.  Debt and equity sources need to feel confident that the project has the best possible chance of success. The whole...

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Turning the Corner

Turning the Corner in design for senior living

Who is ready to turn the corner on everything that has been in front of us in the last couple of months?  I know I am.  While The Douglas Company has been fortunate and grateful to continue operations as an essential business during this pandemic, it has, of course, prevented me from getting out and seeing clients, prospects, and my networking partners, unfortunately.  As I’m sure many can relate, Zoom is just not the same!

That being said, and while it could have spawned from better circumstances, there will be some interesting and exciting times ahead for the design and construction of multi-family spaces in particular senior living communities. 

We have been busy in our estimating and pre-construction departments assisting clients with conceptual budget estimates and value engineering as usual and look forward to seeing more and more creative ideas on how to address health crisis type issues that can...

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The Sagefield

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Announcing Our New Website – Designed with You in Mind

After several months of hard work and dedication, The Douglas Company is thrilled to officially announce the launch of our new website! We invite you to visit us at douglascompany.com to learn more about our processes, services, culture, and to explore our project portfolio

Our new website coincides with our expanding role as an industry leading General Contractor specializing in the construction and renovation of senior living and multi-family projects. The primary objectives of the redesign of our site were focused on providing the opportunity to rediscover who we are as a company, our services and solutions, aesthetics, simplifying our content, and increasing the visibility of our brand. 

We built our new website with you in mind; you'll find our new site is divided into three main sections: Read More >

Construction Complete on The Tower on the Maumee Luxury Apartments

The Douglas Company, General Contractor, is pleased to announce the completion of construction on The Tower on the Maumee luxury apartments, located on the Maumee River in the downtown area of Toledo, Ohio. This $21.7 million project was the redevelopment of the top 11 floors of a 30-story office tower. With construction complete in March 2018, The Douglas Company, owner George F. Eyde Family, LLC, and Quinn Evans Architects hope to breathe new life into this "glass city" historic landmark. This new residential development offers elegance and sleek design. One hundred six apartments provide spacious floor plans between 719 and 1,265 square feet with one or two bedrooms. All units come equipped with stainless steel appliances, including a full-size washer and dryer, granite counter tops and islands, Italian tile floors, and 7-foot panoramic windows affording stunning views of downtown Toledo and the Maumee River. The Tower on the Maumee, formerly the Fiberglas Tower,...

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The Douglas Company Announces Construction is Officially Underway for The Tower on the Maumee, a Multifamily Redevelopment in Toledo, Ohio

General Contractor, The Douglas Company, announced construction is officially underway for The Tower on the Maumee, a multifamily redevelopment located along the Maumee River in the downtown area of Toledo, Ohio. The $20.4 million dollar construction project, being developed by The Eyde Company, will transform the top 11 floors of the vacant 400-foot-tall fiberglass tower into 106 luxury one-bedroom and two-bedroom apartments, ranging from 719 - 1,265 square feet. With expected completion in December 2017, these modern apartments designed by Quinn Evans Architects will feature amenities including stainless steel appliances, Italian tile and marble thresholds imported from Italy and installed by Italian artisans, roller window shades, marble window sills, views from full height curtain walls, and granite kitchen & island countertops. "This is a historic piece of Toledo and a once-vibrant building, our team is excited to be part of bringing this building back to life and new business to our hometown," said...

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