Ideas for Smart Construction - New Multifamily Idea

[Ben Groonwald]

Hello all!

We are looking into building a new apartment complex - 200 units or so, so I am researching into every possible idea into how we can build this complex in a way that reduces ongoing operational costs, reduces the number of staff required to operate the property, and also reduces maintenance costs by helping us predict issues. We have several ideas in mind already, but are excited to brainstorm some new ones as well.  Any ideas would be greatly appreciated! 

I am very naive to construction methods to please forgive my ignorance there. Thanks in advance for the help! 

[Barry Ruby]

Hi Ben,

Congratulations on your entry into the world of RE development. I am developing a 140 unit MF project in Colorado that is focused on producing as many affordable (entry level / workforce) units as possible. As much as possible, Project design will include; passive and active solar, ground source heat pumps and water catchment / recycling. These factors are part of defining affordability in terms of operational costs.

Reducing Op Ex should start with Project Design, which should include a deep dive into running a cost benefit analysis on energy efficiency for the items noted above including considerations for the building envelope, insulation, window/door package, framing and lighting and water consumption.

Actually attaining any or all the of the goals noted above generally comes at a cost that typically falls on the developer which sets up an interesting conundrum for the developer. The challenge being that the developer needs to be okay with increasing development costs that will mainly benefit the Project residents. An argument can be made that these efficiency upgrades will give the Project a marketing "edge" over competition that does not have them and therefore benefit the developer in reduced vacancy and a possible bump in rent rates. While the ability to realize the benefits of the "edge" is debatable and can only be known "after the fact", the developer's increased costs are solid and known from day 1.

The developer's challenge in selecting what is in and what is out of the Project design that defines first cost and Op Ex is to make sure that these elective issues have been thought out and know that they were made by applying as much thought and analysis as possible.