Targeting Commercial Construction

Because of the tightened lending, mounting foreclosures and falling prices in many areas, the single-family housing market continues to weaken. According to McGraw-Hill Construction’s midyear forecast, 2008 will see the single-family market decline 28% in dollar volume and 31% in dwelling units from the previous year—a steeper drop than what occurred in 2007 over 2006.

The good news? Commercial and multi- family building witnessed further expansion in 2006 and 2007, which carried over into the first quarter of 2008. However, the slower economy is taking its toll on this sector, causing projects to be delayed. The loss of momentum will take firmer hold as the year proceeds. For 2008, commercial building will retreat 8% in dollar volume and 16% in square feet, according to the forecast from McGraw-Hill Construction.

But with the single-family market looking grim, the commercial and multifamily sectors are looking to be amidst the best alternatives among a field of fewer opportunities. Here’s a look at a few of the projects turning heads this year.

MBI Award Winners
To illustrate what building systems are capable of creating, we turned to the Modular Building Institute (MBI), which is the association for manufacturers of commercial buildings. Every year MBI sponsors its prestigious Awards of Distinction contest. Entries are judged in the areas of architectural excellence, technical innovation, efficiency and length of project. This year’s contest featured 53 participating MBI member companies that competed in a variety of categories, including permanent modular and green building design. Read on for a look at a few of this year’s winners.

A company called Project FROG, or Flexible Response to Ongoing Growth (San Francisco, CA), earned awards for green building. The company—which designs, manufactures and sells high-performance, sustainable and quick-to-deploy buildings that utilize modular construction technology—earned Best of Show for City College of San Francisco’s Child Development Center.

“A new standard in green building is being defined, and it is exciting to be at the forefront of such change,” says Mark Miller, the innovator behind Project FROG.

The 1,440-sq.ft. units are more than 30% more energy efficient than Title 24 requires. Units are also built quickly, enabling buyers to save on construction escalation costs—up to 12% per year. FROG succeeded in making this building the most energy efficient of its kind. The raised floor system delivers air via floor, creating an upward flow of fresh air. By using higher-temperature air for cooling, the system can utilize outside air for a longer period, thereby reducing HVAC energy consumption. The natural light from the clerestory and window walls decrease the artificial light necessary. Photovoltaic panels produce energy on site for the unit’s use and distribute back to the city grid when not in use.

The new 7,840-sq.ft. police facility by the City of Trenton (NJ), built by Williams Scotsman and Miller Building Systems, took home first place in the permanent structure category under 10,000 sq.ft. The new police station was one of two identical modular buildings that allows the department to have presence in both the West and East Wards of the city. Otherwise, all police functions would have to be run from the downtown central police headquarters built back in the 1930s. The idea behind both facilities was to enhance not only police presence but the revitalization and redevelopment of those two Wards within the city.

“We’ve had a longstanding commitment to the commercial modular space industry for several decades and it’s rewarding to see our innovative projects continually recognized by a panel of judges and our peers,” says Michele Cunningham, vice president of marketing and business development for Williams Scotsman.

The Sergeant’s viewing area in the main lobby is behind a bulletproof glass and wall system, which were both installed at the factory. The use of fire-rated shaft walls for the site-installed elevator eliminated the need to have a conventionally built CMU elevator shaft constructed on site. By positioning one of the modulars per floor in such a configuration allowed the entrance to be part of the modular structure from the factory, eliminating the need to have that section built on site.

The 25,154-sq.ft. Gaby Administration building built by ATCO Structures took home first place in the over 10,000-sq.ft. category. One of the hottest and driest deserts in the world, the Atacama Desert in Chile sees searing temperatures. That’s why this structure was designed for a 25-year life span. Special built-in features include skylights in the hallway at every 10’ to save on energy costs as well as provide natural light. Modular units were built in Santiago and transported more than 800 miles through Chilean territory. Having this project built in the Tecno Fast ATCO S.A. manufacturing facility allowed the reduction in construction costs. With numerous mines in the area, finding skilled tradesmen and local workers is nearly impossible.

ATCO Structures also took home the Best in Show for Retail Space under 2,000-sq.ft. category for the Community First Bank in Youngsville, LA. The design of the exterior building was created to match the current style of retail units in this area, including using site-applied stucco and a 30-year composite shingled roof. The interior ceiling height is close to 9’ tall to create a more open feel. The front-elevated entrance canopy was pre-fabricated and shipped with the building for site installation. The fold-up roof concept allowed for the building to be transported to the site without any special transportation permits while being protected from inclement weather at the same time. The roof was raised and weather tight in the same day, saving installation costs.

Britco Structures took home an honorable mention for this Montessori School in Langley, BC. To meet architectural guidelines for a designated Heritage Area, the exterior siding and detailed facade were selected to blend in with the historic neighborhood. The interior includes extensive custom millwork, and a heated crawlspace keeps the floor warm for the children’s floor activities. Large windows and door lights maximize natural light and provide a bright and positive environment.

The MBI Awards of Distinction contest is the commercial modular industry’s premier awards program, offering competition in more than 30 categories for MBI members. For a full list of all winners, visit modular.org/awards.

R-Anell Wins For Lexington Station
R-Anell Multi-Family & Commercial, a division of R-Anell Homes, has won the 2008 National Modular Housing Council Design Award for the Modular Multifamily category with its Lexington Station project.

Located in popular downtown Asheville, NC, the project was completed in phases from March 2006 through August 2007. The developer teamed R-Anell with Glazer Architecture, one of the region’s premier architectural firms. The design integrates 70 residential condominiums, 25,000 sq.ft. of first-level commercial office and retail space, a restaurant and 100 underground parking spaces across three keycard-secured multi-floor buildings.

“This design provides the comforts of residential living with the amenities of retail, dining and business all in an uptown setting,” says Harold Woodside, director of the R-Anell Multi-Family & Commercial division, which builds townhomes, condominiums, apartments, duplexes and even churches.

The upscale condominiums range from $170,000–$500,000, with one- and two-bedroom units and penthouse options.

“R-Anell is pleased to have its multi-family and commercial design recognized by the National Modular Housing Council,” says R-Anell President Dennis Jones. “This segment of our business has grown across the Southeast and this type of mixed-use design is ideal for urban locations that want to attract young professionals and families to be downtown dwellers."

Like other multifamily and commercial projects built during 2007, Lexington Station was built using elements of R-Anell’s Build It Green construction program. R-Anell, an Energy Star partner, has modeled its Build It Green program to incorporate many of the requirements of the North Carolina Healthy Built Home Program, the draft of the NAHB Green Building Standards and the U.S. Green Building Council guidelines. R-Anell’s manufacturing facility has been independently audited against a set of 232 criteria of conventional and credible green construction methodologies.

Katahdin Lands Steak House Project
The modular industry isn’t the only segment of the systems-building market going after retail construction. Katahdin Cedar Log Homes (Oakfield, ME) has finalized an agreement to design and manufacture a 20,000-sq.ft. restaurant called Eddie Montgomery’s Steakhouse near Harrodsburg, KY. The building, which will contain a 265-seat restaurant and tour-quality concert stage, is part of a 38.5-acre development called Skylar’s Landing that will include shops, recreational facilities and other amenities. Skylar’s Landing is named for Eddie Montgomery’s granddaughter.

“We are enthusiastic about the plans for Eddie Montgomery’s Steakhouse and the surrounding retail community in Skylar’s Landing,” says David Gordon, president of Katahdin Cedar Log Homes. “Our green approach to manufacturing and sustainability was a good fit as well.”

Eddie Montgomery, part of the Gold- and Platinum-album country duo known as Montgomery Gentry, has joined Tommy Mitchell, president of Rocky Top Furniture, to develop the family-oriented destination in central Kentucky. Mitchell developed a strong relationship with Katahdin Cedar Log Homes’ president David Gordon when he joined the Katahdin team to construct the first cedar log home for ABC’s “Extreme Makeover—Home Edition” in 2005. Mitchell has since provided furnishings for several other “Extreme Makeover” projects since that first project.

“Eddie gives back a lot to his community,” Mitchell says. “We wanted the steak house to be designed and manufactured by a company that shared our green approach. I knew that David Gordon had long been implementing green practices, so Katahdin Cedar Log Homes was the obvious choice.”

Katahdin is finalizing a design that will feature 28' ceilings with dramatic exposed beams and purlin log trusses. A full 15 tractor trailers containing the precut and drilled logs for on-site assembly will be making their way from Katahdin’s mill to the construction site at the end of July. Another 15 semis will transport the remaining materials to the site.

What would normally be a complicated construction process for this large of a project is simplified with the bar coding used by Katahdin to match each log with its specific location on the plans. The company’s computerized house manufacturing line makes efficient use of each log. Waste sawdust produced in the milling is recycled through a 14-million BTU biomass boiler that has cut Katahdin’s fuel oil consumption by 90%.

As part of its commitment to sustainability, Katahdin has earned Forest Stewardship Council (FSC) Chain-of-Custody certification from the Rainforest Alliance’s SmartWood program. This certification enables the log home manufacturer to offer Northern White Cedar from responsibly managed forests. Presently, Katahdin is the only log home manufacturer in the United States to hold a SmartWood Certification. n