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“Prefab Apartment Buildings on the rise” according to Marketplace.org

Prefab apartment buildings on the rise

​by Dan Bobkoff

Monday, April 21, 2014 – 16:13

Dan Bobkoff

The first floors of a modular apartment building are already in place behind the Barclays Center in Brooklyn.

Dan Bobkoff

The skeleton of a new apartment module comes together at Capsys’s factory in the Brooklyn Navy Yard.

Dan Bobkoff

A bathroom in an apartment at The Stack. All fixtures were installed in the factory, not at the site.

Dan Bobkoff

A kitchen in an apartment at The Stack. Even the appliances were installed in the factory.

Dan Bobkoff

A model living room at The Stack in the Inwood section of Manhattan.

Dan Bobkoff

The staggered block design of The Stack was designed to highlight its modular construction.

A new apartment building called The Stack is about to open in the Inwood section of Manhattan. By design, it looks like a collection of staggered Lego blocks. On the inside, it’s like any other modern rental building in New York. It has a sleek, simple design.

What’s different is that these apartments were not built here in Manhattan, but almost entirely somewhere else.

“The paint, the lighting, the kitchen cabinets, the appliances, the bathroom tile, fixtures, mirror, all of that is done in the factory,” says The Stack’s architect, Tom Gluck, with the firm GLUCK+.

Gluck has been an architect for years, but this is the first time his firm has built what’s called a modular building.

Each apartment comes out of a factory from a company, like Capsys in the Brooklyn Navy Yard. It looks like an auto plant, complete with assembly line run on a track in the ground.

“Where we’re building pieces of building like you’d build a car in a factory. You get that repetition, that precision,” says Tom O’Hara, director of business development at Capsys.

On one end of the plant, a team is joining steel beams to make the skeleton of a new apartment. On the other end, a crew is putting the finishing touches on a unit. One guy is tiling the bathroom. You could cook in this kitchen. There’s even a thermostat on the wall already. The apartments are so close to finished that they look like you could move in immediately, if they weren’t sitting on a factory floor.

 

An apartment module nearing completion at Capsys. It will soon be trucked to the building site and hoisted into place. (Photo: Dan Bobkoff)

But soon, this entire apartment will be put on a flatbed, trucked to the Bronx, then hoisted on top of all the other modular apartments. When the building’s done, you won’t even know it was built this way.

There are many reasons proponents like O’Hara think modular construction is better: it’s built inside, away from weather and dirt. It’s faster because you can build the foundation and the building at the same time. There’s much less wasted material. And yet, while it’s popular in Europe, modular construction in the U.S. remains a rounding error, accounting for just a tiny percentage of new home and multifamily construction.

“I think a lot of people really have misconceptions about the modular business,” O’Hara says.  “I think they feel somehow that there’s substandard construction in the factory.”

He says most people think modular means mobile homes or boring, blocky buildings. To him, it just means it’s built better.

“Why would I want my toaster built by a guy sitting on a bench with a ten snip banging things together. I want it out of a factory! Why shouldn’t the building come out of a factory?” O’Hara says.

Modular has been seen as the future before, and yet never caught on beyond certain sectors like college dorms and hotels.

But nearly everyone I talked to thinks this is the moment that changes.

“A lot of it truthfully has to do with this building that we’re standing in front of,” says Jim Garrison, an architect and professor at the Pratt Institute. We’re behind the new Barclays Center arena in Brooklyn, looking at what’ll soon be the tallest modular building: 32 stories of apartments.

It’s funded by a big name developer. Garrison says it’s the biggest example that modular is possible, practical, and not necessarily cookie cutter.

“We now have opportunities to build very interesting buildings using these systems. And, people are listening to the benefits that come with it,” Garrison says.

That’s not to say modular doesn’t have downsides. Because it’s made of boxes, you end up with walls against walls, taking up valuable square footage in the building. Designers have to decide everything on the front end. But more developers are attracted to modular’s faster, and sometimes cheaper construction. And, with new projects in the works, maybe this time is different.

http://www.marketplace.org/topics/business/prefab-apartment-buildings-rise

MyMicro NY, our modular, micro-apartment tower coming to Manhattan later this year

M&T Bank Finances Manhattan’s First Micro-Unit Development

BY DAMIAN GHIGLIOTTY 4/02 12:54PM

It was a tight deal for an even tighter development. M&T Bank recently closed a $10.3 million construction loan for the creation of Manhattan’s first micro-unit rental property to be built in Kips Bay. The loan went to Brooklyn-based Monadnock Construction, which is leading the project’s development team, Mortgage Observer has first learned.

The nine-story “My Micro NY” project, located on the northeast corner of East 27th Street and Mt. Carmel Place, will consist of 55 prefabricated apartments averaging about 300 square feet with 40 percent of the units being offered at below market rates. The mini apartments will contain nearly 10-foot ceilings and seven-foot-wide balconies in addition to 16-foot-long overhead loft spaces and full closets.

My Micro NY RenderingMy Micro NY Rendering

“Modular construction is cost efficient and we believe these micro-units will fill a need in the Manhattan market,” said M&T Regional President Peter D’Arcy. “As one of New York City’s more experienced commercial real estate lenders, we’ve thoroughly reviewed the business case for this project and are very comfortable providing the financial support.” M&T declined to discuss the term and rate of the construction loan, which closed in March.

Monadnock and its partners, the Actors Fund Housing Development Corporation and New York-based architecture firm nARCHITECTS, won a competition to build the city’s first micro-units in early 2013. Installation of the 55 units, prefabricated by Capsys Corporation at the Brooklyn Navy Yard, began earlier this year. The micro-units, being installed on the site of an old surface parking lot near Bellevue Park South, are expected to be available for rent in 2015. The ground floor of the completed property will contain 678 square feet of retail space.

Additional financing for the $16.6 million project will come through equity provided by the project’s developers and a secondary loan from the New York City Department of Housing Preservation and Development.

“It’s exciting to pioneer this new housing type in association with the City and our partners, including M&T,” said Nicholas Lembo, Monadnock’s president. “It’s an ideal application for modular construction, and we’re proud to use this innovative approach to offer another affordable option to New Yorkers looking for housing that fits their lifestyles.”

 

M&T Bank Finances Manhattan’s First Micro-Unit Development