Multi-Family and Attached Homes

How Phoenix Building Solutions Works with Developers

The Banks of Saline a 102 unit condominium development Saline, Michigan

Atrium Condominium Buildings Underground Parking, Elevators, and Sprinkler Systems

• Four (4) 12-unit, 2-story buildings
• Three (3) 18-unit, 3-story buildings

Design and Engineering. The developer came to Phoenix Building Solutions (“PBS”) plans prepared by an architect that were unbuildable. The design and engineering staff at PBS completely redesigned the unit layouts (attached) to make them buildable (the PBS fee was substantially less than the architect would have charged).

Building Plan Submission and Approval. Then PBS submitted the completely engineered building plans to the state of Michigan for approval (at no charge to the customer). All state building codes are integrated into our design and engineering systems. PBS gets approvals in as little as seven days (from the state of Ohio) to a few weeks (in the state of Michigan), in either case substantially faster than most builders.

Site and Foundation. The developer is responsible for the site and the foundation (parking garage).

Living Units. PBS produces and delivers a 12-unit building in 8 weeks or less, and assembles in 2 days. Units are finished with all mechanicals (plumbing, electrical, etc.) and all standard interior finish options (choices hardwood cabinetry (8), color of granite counter tops (8), kitchen and bathroom hardware, hardwood or ceramic tile flooring, etc). However, any unit can be customized to the buyer’s taste with special order items.

Interior Finish. The developer or building is responsible for some minor finish work (one man working one to two days).

Roof. Normally, PBS would produce and ship the roof as part of the building. In this case, however, the roof sections were 100 feet x 50 feet x 30 feet. As such, it was more efficient, to have the developer use a third party to deliver and assemble a roof truss system, and then finish the roof.

Building Exterior and Common Area. The developer has a third party subcontractor finish the building exterior (in this case, stucco and stone or brick), and atrium interior.

Model / Selection Center. The model that the developer sells from is an actual unit (and will become the last unit of the last building), saving the developer the cost of a sales and marketing office for this project.

Sales, Construction Process, and Capital Efficiency. The developer can order buildings as needed - no need to keep a general contractor waiting on site for sales to catch up. Per its loan agreement, the developer orders a building after 75% of the units are sold, taking little market risk on the remaining unsold units.

• 10% of the unit price is due with an order,
• 65% is due upon completion at the factory, and
• 25% is due when delivered and assembled.

By ordering one building at a time, the developer uses far less capital for this project than would be used with conventional building methods.

A note on Quality. The product consistently achieves a Marshall & Swift replacement cost quality rating of “excellent” or “very good”, the two highest categories.

Market Comparables. Comparable units (similar size, with slightly lower quality) in Saline, Michigan are selling for $250 per square foot. Units at The Banks of Saline are being sold at $175 per square foot, 30% below comparable product in the market. While the developer is making a nice profit at these prices, it will slowly raise prices as sales accelerate.

In summary, the developer:

• Uses less capital investment;
• Closes the final sale faster;
• Builds for less;
• Markets a high quality product;
• Eliminates several subcontractors (less to negotiate and manage over the project life);
• Lowered the architectural and engineering fees.
• Generates higher profits.