Happy New Year!  Welcome to 2012 and the Winter edition of our newsletter, The PrimeTime Advisor.  As always, we hope you will find its contents informative and the newsletter itself something you look forward to receiving. 

Sincerely,

Tom Skahen and Janice Dumont

Have You Thought About Going Modular? 

By:  Tom Skahen, Partner, PrimeTime Communities, LLC

We always ask our builder clients, "Have you thought about going modular"?  Typically, the response is pretty negative and we're not sure why.  Maybe builders just like to build.  Maybe builders think that modular is cheap and lacks the quality that they put into their homes.   Or, maybe modular companies have done a poor job in getting the message out that they can do it better, more efficiently, and more cost effectively.

Our first experience with modular housing involved a builder client who provided floor plans to a modular company and ordered a 650 square foot cottage.  The end result was a cottage that was delivered in 30 days; we were on site for the delivery at 8:00 am, and walked through it at 11:30.  With the exception of the appliances and the exterior siding it was complete.  

When we actually get a builder to visit a new modular site, walk through the homes, and talk with a modular contractor, their eyes light up. Builders have done it one way for years and when they see this new and different approach, they fall in love with the process.

We've spent some time investigating modular homes over the last year with some of our builder clients and this is what we've found.

• Manufactured homes are becoming more mainstream, higher quality, and less expensive to build when compared to stick building.
• Modular is considered as "Green Building" and good for the environment.
• You can give the modular company your drawings and they can price out the cost per square footage in a couple of days because all the vendors work for the company.
• Homes are built in the factory throughout the winter under superb conditions.  Homes can be sold in the winter, constructed in the factory during winter months, and delivered just before closing during any season.
• In our new economy some new construction communities get a bunch of sales and then it slows down.  This is an obvious labor challenge with the starts and stops.  The modular approach allows a builder to stop, eliminate the labor overhead, and immediately start up when needed.
• The factory is typically responsible for carrying the cost of construction with a small deposit.  The home is paid for upon delivery and the buyer closes simultaneously.  This is a major advantage to the developer from a cash flow perspective.  With the exception of site costs and infrastructure, the developer has no need for construction labor or excessive construction loans.
• Homes can be built faster by a modular company than your on-site team.  A 1,000 square foot cottage can be ordered, built, delivered, and a certificate of occupancy pulled within 30 days.  A three story 36 unit complex can be built in five months compared to the typical 11 months.  How would you like to get your cash six months earlier than you expected on a multi-story rental!

Duplex Style Modular Homes

Garden Style Modular Homes

Cottage Style Modular Home

This community of town homes situated atop Salisbury Street in Worcester, MA offers home owners fabulous two bedroom homes with first floor masters, cathedral ceilings, fireplace, and one or two car garages. 

The developer, Capital Group Properties, is a full service real estate development company headquartered in Southborough, Massachusetts.  Capital Group Properties specializes in the permitting, construction and property management of commercial, residential, retail, and industrial developments throughout Massachusetts.  PrimeTime is pleased to have been engaged to provide re-positioning, marketing, and sales services for this exciting property. 

Wyndbrook - Dover and Windbrook - Tyngsboro