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UrbanSustainability

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Hello,

This is my first post as a member of the Urban Toronto Forum.

I am currently undertaking a research report for Cornell University's Real Estate Magazine and have decided to focus my efforts on a case for Modern Pre-Fabs.

With input costs sharply increasing year-over-year, there is a case for modern, pre-manufactured, modular homes. These homes are gaining rapid noteriaty in Scandinavia, UK, Germany and Pacific-States such as California and Arizona. They are so popular that large multi-nationals such as IKEA have began aggressive operational efforts in pursuit of transforming the urban development scene by creating and mass-marketing affordable, modern prefabs (http://www.boklok.com/)

While some companies such as LivingHomes are creating high-end, LEED Platinum Certified homes, I strongly feel the strength of this emerging industry is in creating affordable, environmentally friendly, urban solutions for middle-income families.

I draw everyones attention to the West Donlands Harbourfront Revitilization Project. While the selection committee has just approved 4 condominium developments with LEED Silver Certification, they have not (as of yet), showed an interest in selling plots for modern pre-fab subdivisions. Introducing this type of housing to an area such as the West Donlands would not only provide environmentally friendly housing at an affordable cost, but would also help Toronto earn its reputation of being a city at the forefront of environmentally friendly urbanization.

What are everyone thoughts on modern prefabs (http://fabprefab.com/fabfiles/fablisthome.htm), and its potential application in the West Donlands (http://www.towaterfront.ca/index.php?home=true).

Also, while I know of a person on the Harboufront Revitalization Selection committee, I would be interested in meeting professionals from the property development field who see this as a potential opportunity.

I look forward to your responses!
 
Unless they can pre-fab structures at least as large as 4-storey stacked townhouses, there's no opportunities in the West Don Lands as the area will not be turned over to no-rise single family dwellings.
 
Thanks for your prompt response.

There are several modern pre-fab developers currently manufacturing both "stackable units" as well as prefabricated/modular flats.

If this could be done feasibly, what types of hurdles could/would one run into with the city in terms of zoning and residential by-laws?

Also, by going through the Revitalization Selection Committee would it be realistic to say that many of the typical municipal issues could be avoided because of city hall's eagerness to make The West Donlands a bustling community?

Look forward to more responses,

Regards,
 
Nice post UrbanSustainability. I believe this is an under served market with some potential huge opportunities. I'm a condo dweller; one reason among my living choice is the lack of modern housing options in the Toronto area.

In Toronto, if you want to live in a house, you usualy have 3 choices:
1) Spend a fortune and custom build
2) Live in an aging victorian style home
OR 3)Live in something that looks like this (puke):
1049-1.jpg


I'm not particularly bias towards prefab, but have found they tend to have modern design principals built in. There just hasn't been the critical mass to get them affordable in canada. A while ago I looked into the prefab market, and I mostly found prefabs that try to mimic the picture above; kind of depressing.

Prefabs please!
MAG_DW1106_OTG_01.jpg
 
Hey UrbanSustainability,

Welcome to the forum.

I have a very soft spot for prefabs and one of my personal dreams is to eventually start a development company that builds environmentally-sensitive modular townhouse complexes on irregular lots. Looks like you might have just beat me to it by, oh, 25 years. :D

I wish that more of the city were transformed by these kind of buildings than high rise condos. I envision them lining the backs of alleyways, perched on top of existing commercial strips, and filling up small brownfield sites.

That said, is your company looking for a temp worker? Since this is my dream job, I would be willing to spend long hours doing something for practically nothing just to gain exposure to this industry!
 
Hipster Duck, Avatarreb:

I am trying to gain some critical mass towards creating a development company that focuses on building modern prefab'd/modular communities.

In the past 4 years, I have done several Victorian Renovations in C01, focusing on added a sustainable element to the homes; whether it be through contrast pot lights, double glazed windows, bamboo and reclaimed flooring, etc.

I am 25 and am just completing my MBA in Real Property Development and Sustainability. When I finish, I would really like to get moving on this idea of introducing modern living to Toronto on a grand scale.

I have built a good network of contacts, and so Hipster Duck, to answer your question specifically, I do not have a temp job right now for you. However, if you would like to email me at adamji@rogers.blackberry.net we can discuss potential opportunity seizing. Besides some interested investors, I am alone in this vision so far - so any help or knowledge would be greatly appreciated.


Avatarreb, I totally understand where you are coming from. Though I develop and love Victorian Homes with a modern element, they specifically target a higher income bracket. In C01, you cannot and will not get a renovated Victorian that is 2500 sq-ft for less than $900k - unless its in a marginal area.

Modern prefabs area provide a great opportunity because they can be as high end as one can imagine, but they can also serve the mass market: low-to-average income earners.

Costs for pre-fabs are decreasing to the Canadian Market. For example, Hive Modular - a notable modular home manufacturer, is now setting up a manufacturing facility near Winnipeg. Hive Modular, unlike the LivingHome picture you have above are relatively cheap at $150 per sq-ft. LivingHomes, the first LEED Platinum Modular Manufacturer, start at $400 per sq-ft.

Furthermore, by incorporating low rise prefabricated building structures, input costs can be amortized over a greater customer base.

Thanks for your responses, and if anyone else from this Forum can chime in, it would be great.

Thanks,
 
My only comment at this point concerns your "on a grand scale" comment. To me it begs the question 'how big do you mean'? I ask because if you are the only developer planning to tap this particular niche in the market, and are wanting to introduce something that many purchasers are unfamiliar with or skeptical about, then move into it in gradual steps: this city seems to be a place that does not reward giants leaps, an instead normally prefers to reward a company that shows that they have earned their stripes over the years. You don't want your story to be told in the future in a way that parallels Harry Stinson's, for instance. Take your time.

42
 
Couple of questions:

1- Do banks give mortgages for pre-fabs?

2- Suppose a lower income earner wants to start with a small unit, but over time as a his economic situation improves and his family grows, he wants something a little bigger. Would he be able to make affordable pre-fab additions to his existing one? Or would he have to opt for a new model instead?
 
Hubotnik said:
Couple of questions:

1- Do banks give mortgages for pre-fabs?

2- Suppose a lower income earner wants to start with a small unit, but over time as a his economic situation improves and his family grows, he wants something a little bigger. Would he be able to make affordable pre-fab additions to his existing one? Or would he have to opt for a new model instead?
Click to expand...

Good question... I would guess that a prefab loan would be similar to a construction loan. The same as if you were doing a traditional custom build. One stumbling block I would see is whether the banks will see the equity of the prefab as at least equal to the cost of obtaining and installing.
 
interchange42: Grand Scale is highly subjective and it was wrong of me to use this phrase. Most prefab projects right now are on a home-by-home basis, with the majority of the projects being undertaken by the end-user/homeowener.
What I meant by grand scale is creating a "sub-division" or group of these homes; about 10-15. By taking it to that scale, the developer would see increased efficiencies and lower per-unit costs and would not be entering the Toronto housing market with a "shock" as you have discussed.

Starting with a 10-15 home community is relatively small scale, however it would it start as a strategic entrance point into the Toronto market. I would say that given Torontonian's "follower" mentality, having a large scale 50+ home development project would be quite risky.

My interest is in creating a buzz around such homes, and as you said, take small steps.

Hubotnik: Majority of the modern pre-fab homes do qualify for bank financing. As avatarreb stated, one would have to initially start with a construction loan and once the home is "built", it would then be able to qualify for a mortgage. This is what I am fi nding with all my research. However, my research is limited right now to the American market as Prefabs are taking off their much quickly than here. My concern is with the stringent Canadian Banks. However, what I will do is email Viceroy Homes (a Canadian pre-fab TRADITIONAL home manufacturer) and ask them what they have exeperienced with their customers.

In terms of adding on to your prefab - that is the whole beauty of the design. I urge you to take a look at "fabprefab.com". They have a list of current pre-fab manufacturers, and many of them offer box like structures, which hint to me as structures that could have units added on relatively easy.


..stay tuned, tomorrow I am meeting with an official from the Harbourfront Revitalization Committee. Will let everyone know how it goes.
 
Wow!! Thank you, I was beginning to think I was the only one who thought this way!! I'm in a condo right now because it's the ONLY place that's modern and contemporary without being an expensive custom house! This news of Hive setting up shop in Toronto is such good news! Can't wait to hear more details!!


avatarreb said:
Nice post UrbanSustainability. I believe this is an under served market with some potential huge opportunities. I'm a condo dweller; one reason among my living choice is the lack of modern housing options in the Toronto area.

In Toronto, if you want to live in a house, you usualy have 3 choices:
1) Spend a fortune and custom build
2) Live in an aging victorian style home
OR 3)Live in something that looks like this (puke):
1049-1.jpg


I'm not particularly bias towards prefab, but have found they tend to have modern design principals built in. There just hasn't been the critical mass to get them affordable in canada. A while ago I looked into the prefab market, and I mostly found prefabs that try to mimic the picture above; kind of depressing.

Prefabs please!
MAG_DW1106_OTG_01.jpg
Click to expand...
 
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