All Forum Posts by: Chris Blackburn

Thank you for the Ozone info.  Where is your area?  We have found consistently that the 1 bedrooms rent out the fastest.  The younger generation does not want to share any space and would rather have a smaller space with nicer amenities then share with a friend or stranger.  A 1970's 1 bedroom vs what we are building is a dramatic difference in what the tenant experiences.   We are also thinking the older generation (Silver wave) will more drive more demand.   We just finished a 110 unit luxury project in Eugene that was 75% studio and 1 bedroom with only 27 2 bedroom units and no 3 bedroom.  This is near the University (Just across the bridge)  so it may not be a fair example.  @kris h I am not arguing with you and appreciate any perspective to produce a better product.  We just have the same builders doing the same building and I do not think they are looking at the future.  We are in construction of a small mixed use in Keizer with all 1 bedrooms (13 units- modern style with 14' ceilings on the top floor.  We have 5x micro commercial flex spaces on the bottom floor.  We affectionately call it Sonic River.  (Adjacent to Sonic Restaurant and on River road) KISS.  

https://www.keizertimes.com/posts/1517/river-road-project-will-be-citys-first-to-combine-offices-housing

Since we are building our units- We have been looking closer at Studio's and 1 bedrooms.  No one looks at what they are paying per foot when they look at a rental.  They only look at price per month.  The 450 Sq ft studios can generate $2.50 and up per foot if the unit is nice enough.  I am watching the KOZ  almost all single/studio go up in our downtown and this company is a bit prolific https://www.kozdevelopment.com...   https://www.kozonstate.com

All amenities are included and you get no parking- (it is downtown)  I think it is a blend, an evolution and there is room for innovation.  @kris H. may be right by keeping it simple and do what you know works.   @jay hinrichs could also have a valid point about a vaccine making the virus a mute point.  I could only wish that to happen.  All my people that I love and support and cheerlead for (Every small business in America) have been decimated, we have no idea of what impact this will have and our current climate seems to be a bit anti business)  (I could go on but I will step down from my soap box- do not get me started)

  

Thank you

@Jordan Burnett

  That is a great thing to consider that would work better for the 2 or 3 bedroom units.  You could design a 2 bedroom to be offered as a 1 bedroom with a home office? (not sure why you would need 2 bathrooms.  I think you have to re-educate the way people think about working from home-  It's not a bedroom! It a home office-  (Plus the Tax write off?  I like it!

We are a small developer in Salem Oregon. We are lining up some incredibly sweet projects setting up over the next year. With the help of our first syndication (all the other projects are self funded). We are currently 1/2 done with Keizer Oregon's first mixed use project! 5x office/flex spaces with 13 single bedroom apartments above it- all wrapped in a cool modern style with 14' ceilings on the top floor (Shed style roof). Looking to see if anyone has put together a list of additional "Add on" improvements to support a Covid resistant building. (CRB) (maybe move away from the negative and call it a "Health Protected Building" HPB, my wife no to the "Bubble Boy Building" BBB- She is clearly not a boy. (Not that there is anything wrong with that) (PC).

OK- Back on target-  

Here is my list-  I will try to add to it as a resource- Maybe put a link together-  

1:  Air circulation/Heating-   PTAC, or MiniSplits (Anyone make one with a UV-C virus bypass/intake)? Air moves too quick? or kills a % overtime

2: Well sealed front door- (should already be according to energy code- maybe an extra layer, antimicrobial insulation around door?)

3: Build 1 bedroom units as roommates become a liability-  (so build smaller units as price is a factor)

4: Antibacterial materials on items you touch- (Metal is naturally antibacterial over time) some more than others- which is best? or a antimicrobial coating (I do not like chemicals)

5 UV-C disinfectant lighting system.   (Floods room with UV-C to kill exposed virus )  Motion sensor or timer 1 fixture per room or a dual light/UVC sanitizer mode?

6.  Ozone Ozonator   EPA says NO.  need more research

7. Individual heating systems for each bedroom PTAC or miniSplit.

8.  UV-C lights in Elevator (we are doing woody walk ups) (But elevators are coming soon to help our silver wave (older retired generation)

9.  A cute little hand sanitizer station at the front door? also spot for masks (washing hands is better) (could just be a shelf)

10. find out what hotels are doing?

11... Anybody have any input?

Chris Blackburn  Clutch Industries   www.clutchindustries.com  Salem Oregon- coming soon- GMF Good Morning Fridays-

Weekly VLOG on commercial real estate in the Willamette Tertiary Market (Yes- that means not Portland)

for all 3 of the people who made it this far-  Here is the  weekly update- from our company on that mixed use project.

Shows our progress

https://documentcloud.adobe.co...

I would look at Troy Willis with Willamette Valley Bank In Salem OR- Just google "Troy Willis with Willamette Valley Bank". Not only can that bank loan up to $7M- Willis has access to other banks where they will participate. Also he has connections to Lifeco (Insurance). He just ran a bridge construction to HUD financing that is a crazy game changer- I made one of the apartment projects that I am working on (hopefully breaking ground this year) go from a $7000 a mont profit to a $17,000 a month profit (35 year AM, with a 2.7% rate will do that!) Pioneer bank has been amazing, Maps credit union is also a solid company with a solid team- Thank you Ben and David!

Hello Team BP.

First of all I want to thank everyone who contributes to this forum.  I have not found another site that celebrates, supports and encourages the members to this degree.  This is where I go to reinforce how good people can be!  

We have been working with some amazing local banks (Pioneer Trust, Willamette Valley Bank, Maps credit union) (do not tell any one about these great banks- I do not want them to get so busy they forget me)  I am fortunate to have some great new build projects coming up and are exhausting my immediate access to capital.   (These banks are great resources for commercial loans- PM if you want the contacts)

I know there are some big banks out there- but I am just a tiny number in a big spreadsheet.  A number that can be deleted if I do not meet their calculations or if the formula changes:(

Looking for construction friendly Banks/Credit Unions with an appetite for new construction with apartments (18-60 doors) and mixed used (retail on the bottom/Apartments up top).  We also have a few micro warehouse projects on our board  (1-3 acre small unit flex spaces).    

Ultimately it is about relationships that take time to build but every relationship starts with a single conversation.

If any of you have some contacts that are looking for a solid client (me), feel free to share.

Here are some of the local chartered banks I am looking at and the next list is the credit unions.  

Here is a ugly link to a info on Oregon Credit Unions and Banks (a bit of a jumble-sorry)  Download or augment it if you can.

Oregon credit unions and banks

Hoping for success for all those willing to try to build a better anything!

Chris Blackburn

Clutch Industries and others:)

Can you define site work- it seems maybe 10x times too low.  I could pop it in our worksheet and show you on a percentage basis what our costs are.   Chris Blackburn Clutch Industries Salem OR (Home of Bigfoot and future home of a 12plex modular apartment building)

These are smaller units, but the finish is hard surface counter (quartz), PTAC (notice the ugly cord that should have been hardwired) LVT in the kitchen- (we would have done all LVT if we were keeping this)  We were only zoned for 17 units so the 18th unit was set for self storage units for extra income.  We did set the infrastructure for charging stations.  Here is a link to the photos:     https://www.google.com/maps/uv...   or if that does not work : https://tinyurl.com/wkxnmbz   

@Chris K. Where are you building at $250-350 a door in a tertiary market? We are building at all in cost at the $125-$150 a foot. We finished a 17 unit three story at at $140 a foot All in. This includes hard and soft costs, land, permits. A 12 unit stand alone complex is 95% the same in every location- the 5% would be the difference between the nuances of each city, county, state. The efficiency of the same contractors working on the same building design over and over hopefully builds a hyper efficiency with in each trade. Now overlay this in a factory modular situation and a lot of time and labor could be saved. Maybe my area is way below the average price to build.

 We are looking at putting together  a simple, repeatable, improvable, standardized, simplified, optimized, economized multifamily project designed to be modular.   A 13' 8" by 30' or 40' module built at a set location as the base for a multifamily module.  Yes- we know about OS, or Guerdon  or Katerra or Palomar or Blokable.  I am not concerned about saving Seattle's $350 a foot price for their apartments (low end).  I am looking for the Model T of apartments.  The same building, the same layout, the same fixtures, the same sq footage, the same parking lot, the same on site detention.   Every building rolling out the same in the name of affordability.  Yes- these units are smaller- they have to be to ship via truck.   Stagger them so you do not have an ugly flat relieve reminiscent of a beautiful mobile home- yes.   Design them around the dimensions which work best with the simplifying assembly- yes.   If your site is not flat and a minimum of 1 acre- then go and find another solution.  We need turnkey 3 story buildings that can be built like Henery Ford would.  These units built in a factory- Stacked on site and put together in 5-8 months instead of the 12+ months we seen in the past.   Price to build should be all in at $125,000-$150,000 per door or $120-$150 per foot.   I am NOT talking about building these in Portland, Seattle, Lake Oswego (Sorry @Jay Hinrichs;)) or Vancouver.   We have thousands of great renters wanting affordable housing either through market rate, affordable, hero (I do not like this term), work force, section 8 (soon to be rebranded).  Responsible capitalism can provide all of this and more, plus jobs, plus growth, plus stability.   There is so much opportunity here.  Let's sit down and share the solution- the worst we could do is provide amazing housing for all those people that make America great.

Ok- I am getting off my soap box.   I seriously think that a solid, repeatable design could change our current paradigm.  Everyone of the "Modular" apartment projects I have seen is about as efficient as a hand built Ferrari.  How would Henry Ford provide housing for the common man?

 Please feel free to roast me or maybe even add to the solution.

Sincerely

Chris Blackburn

Clutch Industries, NWRInc, Clutch Bowling, Inookusa.com

Salem, OR

@Benjamin Rosemont. What specifically are you looking at for zoning?