Modular real estate created some buzz over the past years for being an alternative in property construction. A Forbes article even described modular as larger-than-life Legos. The same website even called it the future of real estate. But, what is modular? And is it really the future of real estate?
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Today, we dig deep about modular real estate with Aundre Oldacre, co-founder and managing partner in AoRa Development. Aundre is also the Vice-Chair of the Offsite Construction Council for the National Institute of Building Sciences. Aundre tells us that the quality is better with modular compared to stick-built. He, however, says that this technology is still in its infancy stage, taking just 4% of the marketplace. Aundre also details how modular can take away the heavy and tedious work from construction workers. Click the play button now and find out why modular real estate is a good option for you!
Key Points From This Episode:
- Aundre explains what a modular asset class is.
- Aundre shares how he got into modular and was connected with the offsite construction council.
- Modular is still in its infancy stage – 4% of the marketplace.
- What is Building Information Systems (BIM) technology?
- How BIM technology is improving construction?
- The key factors that would make a project a good candidate for modular.
- Aundre talks about some issues in permitting when having a modular construction.
- The difference between stick-built and modular-built structures – the quality is better.
- What are the risks in modular real estate?
- Aundre elaborates on the contracting process in modular.
- Aundre’s modular project includes a single-family, senior living, 20-unit condominium, 1,5000 units.
- Aundre shares his thoughts on where real estate is headed over the next 12 to 18 months – where the opportunities are and where are the more risks?
- The number one thing that contributed to Aundre’s success.
- The good resources to learn about modular – The Modular Building Institute, the National Institute of Building Sciences, and Google.
“Modular is just the ability to create housing or any building for that matter, inside of a factory inside of a controlled environment.”
“(With) the use of robotics, we can take the heavy and tedious work away from the workers and have them do skilled labor like plumbing and electrical engineering. (The) robotics, you know, (are) things that will extend the workers life and happiness in the job.”
“You need to research your town or municipality that you’re looking to build (modular) before you actually go ahead and say I’m going to do this modular because of all of these efficiencies.”
Links Mentioned in Today’s Episode:
About Aundre Oldacre
Aundre’s role as a founding partner at AoRa Development is to find, evaluate, and prepare deals to be underwritten by lenders and investors. He implements various strategies to find off-market deals that are either undervalued development sites or add value acquisitions. Once acquired, he helps manage the process from start to finish, working alongside the team, ensuring the latest technologies are applied for the most efficient and expedient building methods. Aundre prioritizes sustainability, through the utilization of renewable energy sources, municipal tax incentives and programs, virtual doorman and assistants, property management solutions, and modular building. As a result, these practices increase IRR for investors and the firm.
Aundre has completed the Cornell commercial real estate program. The program covers all aspects of a commercial deal including acquisition, managing development, financing the deal, creative financing, property management, asset management, and underwriting.
He also completed Columbia’s Construction Finance certification and learned how to accurately provide cost estimates, quantity takeoffs, feasibility, financial modelling, and manage risk during a project. Aundre is a member of the off-site construction council with the National Institute of Building Sciences.
Our advantage is we can build projects 50% faster, at a lower cost, with less variables and contingencies over traditional construction methods. We build with structural steel with better quality. We use the latest technology in renewable energy sources from wind, to solar, cogeneration, geothermal, and radiant heating to lower utility costs and increase profits for our investors.
He got his start with BK Brownstones, in which he invested, renovated, and managed multi-family properties in Brooklyn, New York and the greater NYC areas. He started with 2-4 multi-families and is currently focused on larger mixed-use 50+ unit developments in the NYC area. Forward-thinking, efficient construction management, off-site modular construction, and deep understanding of the latest proptech innovations are the values he brings to successful on time and on budget large scale developments.
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