# Modular condo builds



## Ethan (Aug 8, 2010)

I'm part of an investor group that is building a 4 story condo building near Regina's downtown. I think modular builds are advantageous for several reasons.

1. The modules are built in a factory, therefore they have limited exposure to the elements.
2. Construction costs are ridiculously high in the Western provinces, going modular allows most of the construction to be done in a lower wage environment.
3. Modular is fast, a 24 unit building with ground level indoor parking takes 7 months to build (after receiving permits). This short time line can greatly enhance returns.

Here are pictures of the modules being built in Boise, Idaho:

http://www.tpcl.ca/Strath_Pix.php

Does anyone have experience with modular builds? What are your thoughts? I'd love to get some investors together to do a similar project in a boom town like Weyburn/Estevan (oil & gas) or Lanigan/Humboldt (potash). Housing and labour prices are high in those places, and there are severe housing shortages. I think that bringing in modules constructed in a lower wage city could generate great returns in the boomtowns.


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## Ethan (Aug 8, 2010)

Here's pictures of the third module being set last night:


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## Ethan (Aug 8, 2010)




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## andrewf (Mar 1, 2010)

Interesting.

I think modular construction is interesting, but it hasn't really taken off. I know there have been issues with quality (leaky/mouldy portable classrooms), aesthetics (looks like cheap housing) and cost (high end modular homes can get quite pricey, but the level of quality construction probably beats what you can get in the field).

Another interesting trend is modular high rise buildings. Broad Group (a Chinese HVAC manufacturer) has put together a 30 storey building in a matter of days using factory-built components. They're currently trying to build a 220 storey building, though that's looking more like hype than reality.

Here's a video showing a time lapse and some of the advanced features. My only concern is that the building is a bit of a bland box. 

https://www.youtube.com/watch?v=Hdpf-MQM9vY


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## jcgd (Oct 30, 2011)

They look pretty neat. It would be nice to be able to build the building indoors and then put it up quickly. Ethan, are they cheap feeling/ looking in person?


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## donald (Apr 18, 2011)

The only thinking i have(not critical nor do i know anything about modular)Is how much it really is cheaper,it looks like just the frame is built indoor's.

Materials are going to be the same price.You have to factor in crane operating(which i know first hand charges large amts and then long distance transportation which also is costly vs ''on-site" labour which ''almost'' would seem cheaper.

Being in the construction field i am bias that a job is way better quality built on site.

its a interesting concept and it obviously has benefits otherwise it would be done.


Do you still have to do all mechancial eglumbing/electrical/outside exterior products ect?


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## Ethan (Aug 8, 2010)

I'll try to answer all questions in this post.

The condo's do not feel cheap. If you look at our listing (see link below) you can see pictures from the inside of a similar build 2 kilometers from our build. Same contractor, same builder, different investment group. Different building design but the suites are very similar.

http://www.realtor.ca/propertyDetails.aspx?propertyId=12443356&PidKey=-1978821937

The majority of the constructions is done in Boise, Idaho. When the modules are shipped to us, the frames are up, the insulation is in the walls, the electrical wiring and plumbing are all complete, there is drywall that has been mudded and primed. Cupboards are in, as well as the bathrooms (toilets, baths, showers etc.). The decks including railing are all complete. Approximately half of the siding is complete. Most appliances are shipped in the house already, including stoves/ovens, fridges, dishwashers etc. The work that is left for us is to install the flooring, paint the walls, put the texture on the ceiling, as well as hook up the the condo to the local utilities (water, sewer, gas, electric, telephone/internet etc.). If you look at page 7 of the pictures in the below link, you can see the inside of one of the shipped units.

http://www.tpcl.ca/Strath_Pix.php

Once the modules are set, it takes 2 weeks to build the roof, then 3 months to finish the interior/landscape. Timeline is roughly 3 months prep (landscaping, pouring of tiles and base, setting structural steel on the first floor), 4 days to set modules, 2 weeks build the roof and 3 months to finish the interior.

If you look at the gallery in the below link, you can see the inside of a similar build near the airport in Regina.

http://www.rethinkrental.com/communities.php

As for cost savings, all I can say is that they are considerably less than a conventional build. We bought the land as a parking lot in July 2010 with the intent to develop. It took 2 years to make a decision. We considered houses, townhouses, conventional build condos and modular condos. Modular condos had far and away the greatest projected returns, and we were lucky enough to have a company in Regina who, at the time, had completed 5 modular condos and had 3 more under construction. This gave us confidence as well as 8 sample builds that we could tour.


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## Cal (Jun 17, 2009)

Thanks for sharing the pics. It would be great to see some more after a few weeks as it is coming along.

What % do you figure you saved off of the conostruciton costs alone? (Not including the extra rent you will be able to collect by having it built and rented out sooner)


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## Ethan (Aug 8, 2010)

Had to ask the project manager, turns out it is only ~5% cheaper to go modular (I had thought it was 20%). What we saved in lower wages/materials was mostly lost in transportation costs and crane rental. The only material savings was in carrying debt for a significantly shorter period.

Although the budgeted costs are similar, I have a feeling the actual costs were much less. We had very few cost overruns, primarily due to the majority of construction being done in a controlled environment. The builder was great to deal with and took care of everything, whereas arranging multiple contractors locally would have been a logistical nightmare. The more contractors you deal with, the more likely you are to get ripped off at some point.

My Dad and my Uncle bought a 24 unit apartment building 8 years ago, converted the building into a condo and renovated it top to bottom. Dealing with contractors was such a hassle, the project went over budget both in time and in money. Going modular was a much smoother experience.


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## Ethan (Aug 8, 2010)

http://regina.ctvnews.ca/video?playlistId=1.819405

There's a CTV news report on the build at the 4:20 mark of the above video. If you click the link after Sunday, February 10, just search for the Sunday, February 10 evening news.


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## Ethan (Aug 8, 2010)

This is what it looks like when all 24 modules have been set:


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## Barwelle (Feb 23, 2011)

I once worked for a company that imported modular houses from the States. They did feel rather cheap inside. Though looks like your builder aims for something nicer.

Another individual in the industry (a reputable one) told me about how there were several similar units (as in, at least 80) sitting in a yard in one of the Prairie provinces, unable to be sold. There was a code issue: They were built to whatever American code, but did not conform to our standards here, so the importer wasn't allowed to sell them until he rectified the issue. Not sure what the problem actually was, but that was quite an oversight that they didn't build them to conform to the codes that apply to the end-user, if it was bad enough that they couldn't even sell them.

That being said, I like the idea of factory-built buildings, for the same reasons as listed above. Though I'd be exploring my options here in Canada. Less hassle for importing, codes (I think) are pretty similar across the country, support your own country's economy... Ontario's construction industry is not doing so well right? Maybe there are some starving factory builders in Ontario that would build / are building modulars to send out West.


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## Charlie (May 20, 2011)

There are a couple of companies in Vancouver pushing modular build for laneway housing. The three month build time seems to be a big advantage. Since these are the size of a garage, the transport wouldn't be as big an issue. It's interesting.

Here's one: http://homesonthelane.com/


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## andrewf (Mar 1, 2010)

I saw a modular home built on 'This Old House', but the modules were wall and floor panels, not preassembled boxes. I think that might have a big impact on transport cost. Also, it was a high end home.


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## tombiosis (Dec 18, 2010)

andrewf said:


> I saw a modular home built on 'This Old House', but the modules were wall and floor panels, not preassembled boxes. I think that might have a big impact on transport cost. Also, it was a high end home.


You are thinking of something different,,,SIP construction. I think it stands for "structurally integrated panel" or something...There is a 4 storey condo building almost complete right near my home. It went up really fast. The sign says 1 bedrooms starting at 245k! I've been watching all the pieces arriving on flatbeds...they just hoist em up and bolt em on...once its up it will be clad in brick I believe.


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## andrewf (Mar 1, 2010)

Perhaps that's the correct jargon--on the show they referred to it as a modular home. It certainly looked like a no-compromise building technique.

http://bensonwood.com/about/release080429.cfm


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## donald (Apr 18, 2011)

That is a pre-built timberframe house,there is extensive prep work that has to take place in a controlled environment.I think this old house may have even got the timber's raw.Timberframe/log ect is on a different level all together than the conventional ''stick'' frame.

This is just m.o but the level of care and craftsmanship between factory built(union,low wage earners)Vs on-site journeyman craftsman are like night day,i know they are just building walls/partitions ect but i can assure you ''factory'' guys don't have the same level of care and pride you will find on on-site construction.This is just purely from a quality standpoint.

Most journeymen carpenters are not in it for the money(though the $ isnt bad)more so for the love of building ect.I've seen pre-built and have seen it come on-site and most of it is ''racked'' from transportation and few things are square/level/plumb.I'm not saying it does'nt make sense business wise(it does)but it is a inferior way to build quality.But i ''guess'' the quality aspect isnt the point here.I would'nt buy a factory built home but that is just me.


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## Cal (Jun 17, 2009)

Ethan 5% savings is great. You are that much closer to better cash flow, and as you mentioned it gets you a few extra months rent x 24. Which depending upon rental amounts could get you in the 6% savings right out of the gates. Thanks for sharing the pics.


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## Ethan (Aug 8, 2010)

Time lapse video of the construction:

http://www.thestrathmore.ca/Time_Lapse.html

There are also pictures of the show suite on the website to give you an idea of what the finished product will look like.


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## Ethan (Aug 8, 2010)

The building is nearly done, we're expecting the first occupancies to begin in ~1 month.

Below is a video tour of our show suite. I'm very pleased with how they turned out, they don't look/feel cheap, which is the typical concern with modular builds.

http://youtu.be/4oDR4f1Poow

Note - can you not imbed youtube video's on CMF?


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