2022 Illinois Real Estate Journal Awards

2022 Illinois Real Estate Journal Awards

McShane was recognized as a top multi-family general contractor at the Illinois Real Estate Journal Awards. The firm was named Multi-Family General Contractor of the Year and received additional awards in the affordable housing and education redevelopment categories for the construction of Fifth Avenue Apartments and Cristo Rey St. Martin College Prep – Phase II.

Active in the multi-family market since 1998, McShane has built more than 27,000 units across the nation. The firm’s portfolio includes luxury, market rate, affordable and mixed-income residences, supportive housing, independent, assisted living and memory care senior living facilities, and off-campus student housing residences.

The Trotta Completed in Middleton, WI

McShane Construction Company completed construction of The Trotta Apartments for client Impact Seven, a statewide affordable housing developer headquartered in Rice Lake, Wisconsin. Located in Middleton, Wisconsin, the new apartment residence offers 126 apartment units. Positioned on a site that previously housed a motel owned by the Trotta family for many years, the project’s name pays homage to the Trotta family’s history on the property.

“It was such a privilege to work with Impact Seven and Ramaker on this development,” shared Alison Gorham, Director of Wisconsin Market at McShane. “The project was a true collaborative effort between the three firms, and we’re thrilled with the final result.”

Situated on a three-acre site, the development features four stories of wood frame construction atop a subgrade parking garage. The building’s façade incorporates a mix of masonry and Hardie board siding.

The amenity-filled residence offers access to a club room, fitness room, dog wash, fourth-floor common room and three rooftop decks. The property provides an underground parking garage with a hydronic heated ramp, surface parking and electric vehicle charging stations.

Units are offered in one- to three-bedroom floorplans with one to two bathrooms. The residence offers a unique blend of rental rates with several apartments designated to accommodate workforce housing for households whose income qualifies. Each unit features luxury vinyl plank flooring, white cabinets, granite countertops, a tiled backsplash and stainless steel appliances.

Designed with sustainability in mind, the units also have 95% efficient furnaces with 14 SEER split system air conditioners.

Ramaker provided architectural services for The Trotta Apartments.

Algonquin, IL Senior Living Residence Completed

McShane Construction Company completed construction of The Oaks at Algonquin for client Spectrum Retirement Communities. The firm provided comprehensive construction services for the 166-unit senior living residence in Algonquin, Illinois.

“The Oaks at Algonquin is a beautiful community that offers continuing care options and best-in-class amenities,” stated Jason Breden, Vice President at McShane Construction Company. “From the garden to the movie theater to the sky deck, the development has something for all of its residents to enjoy.”

The H-shaped building accommodates independent living, assisted living and memory care units. Each independent living unit features a full kitchen and assisted living units incorporate a kitchenette with a refrigerator and microwave.

The property offers a vast array of amenities for tenants, including three restaurants, a pub, salon, media lounge, theater, health club, doctor and therapist offices and a community center with a demo kitchen. Tenants can also enjoy outdoor living space including a rooftop deck and fire pit, grill area, dining patio, memory care garden and well-landscaped courtyards.

The three-story building features wood frame construction with an exterior of masonry, stone veneer, shake and panel siding and architectural shingles.

Vessel Architecture provided architectural services for The Oaks at Algonquin.

Overcoming Long Lead Times in Industrial Projects

Since the start of the pandemic, our country has battled supply chain issues, with everything from soap to flour in short supply. The first shortage that greatly impacted the construction industry was lumber, as prices skyrocketed to an all-time high. While this primarily affected the multi-family market, as supply chain disruptions continued, it wasn’t long before the industrial market started feeling the effects.

With raw material shortages and production maxed out, no U.S. region has gone untouched. In the Chicago area, we are experiencing shortages of precast, which now has a lead time of up to 18 months. In the Southeast, we are seeing a shortage of stone and cement needed for the concrete mixes. Nationally, we are seeing allocations of roofing and steel products.

Though we all hope to see an end to these challenges soon, the reality is that with lead times of more than a year, we will face this for some time still. This makes early and careful planning crucial during pre-construction and construction. It is important to be open and upfront with the client about challenges we expect to face and our plan to overcome them.

Adaptability is key to maintain a timely completion. We now approach the sequence of construction differently on many projects to ensure that the lack of availability of one material doesn’t delay the entire project. With a shortage of precast, we are seeing projects where all site work and paving, which is normally completed near the end of a project, is completed first. At other projects, we have erected the steel framing before the precast panels were installed. With a dramatic increase in steel prices, we have shifted from using ballasted roof systems to using adhered systems.

Our strong relationships with our subcontractors have also been an important factor in the success of our projects. We are often able to secure materials with a letter of intent before a contract is formally issued so that we can get them as early as possible.

At the end of the day, our clients can trust that we will get the job done. The current market conditions don’t make it easy, but our team is equipped to tackle challenges as they come.

2022 CBC Merit Awards – Residential

Fifth Avenue Apartments received a Chicago Building Congress Merit Award in the residential category. Fifth Avenue Apartments is a five-story development in Maywood, Illinois, that provides 72 affordable apartment units for working households at or below 60% of area median income. Nineteen of the residences were set aside for special needs populations, eight for homeless veterans and 11 for residents from the Illinois State Referral Network. In addition to common space for tenants, a grocery store occupies the ground floor, addressing the lack of this amenity in the area.

The National Green Building Standard Bronze-certified development was chosen for the International Living Future Institute’s pilot program for affordable housing, which aims to provide sustainable and healthy living conditions while maintaining the desired affordable mix.

McShane worked to build the development at a rapid pace, assembling the entire building structure in just 35 days, and delivered the project one month ahead of schedule with a perfect safety record.

2022 CBC Merit Awards – Industrial

Abt Electronics received a Chicago Building Congress Merit Award in the industrial category. Abt Electronics contracted McShane to add 430,000 square feet to their existing warehouse and showroom facility in Glenview, Illinois. The addition incorporates two three-story office blocks along with 407,000 square feet of warehouse space. The single-story warehouse offers a 32′ clear height, 39 semi-truck docks and 144 box truck positions. The expansion more than doubled Abt’s warehouse space, enabling the company to improve their efficiency by having less stock-outs. The additional space also allows them to expand product lines with new items. It is estimated that the expansion will create 100 new jobs for the community.

Abt’s existing facility and showroom remained fully operational throughout construction, so McShane took extra steps and precautionary methods to ensure that construction did not interfere with operations. In the end, the project with a perfect safety record.

2022 Largest Multi-Family Builders

The McShane Companies was ranked as #5 on the National Multifamily Housing Council’s list of largest multi-family builders in the nation. McShane has served the multi-family market since 1998 and began construction on 9,044 units in 2021.

McShane to Build 172 Affordable Units in Sun Prairie, WI

McShane Construction Company was selected by Roers Companies to provide design-assist construction services for The Wildwood at Main. Located in Sun Prairie, Wisconsin, the new affordable housing development will offer 172 units.

“We’re excited to partner with Roers Companies to provide affordable housing in Sun Prairie,” shared Alison Gorham, Director of Wisconsin Market at McShane. “The Wildwood at Main will be a beautiful, amenity-filled development and an asset to the community.”

Positioned on a 5.3-acre site at 150 Schneider Road, the development will incorporate two podium-style buildings with three stories of wood framing atop an underground parking garage. The exterior of the buildings will feature a white utility brick and Hardie panel façade with large windows allowing for abundant natural light in the units.

The site will offer best-in-class amenities including a club room, fitness room, playground, play berms and an outdoor grill and fireplace area. Additionally, the underground parking garage will provide 209 parking spaces for tenants, while surface lots will provide 134 spaces.

The project was designed with sustainability in mind to achieve Wisconsin Green Built Home certification.

As a design-assist project, McShane was engaged by the client during the schematic phase to offer input into the project’s design and provide value engineering services. Benefits of this delivery method include a reduction in cost and schedule overruns, improved constructability and added value to the project.

Korb + Associates is the architect for The Wildwood at Main. Completion of the development is slated for August 2023.

McShane Completes Industrial Facility in Richmond, California

McShane has completed construction at 500 Pittsburg in Richmond, California, for its client, a fund managed by a subsidiary of Ares Management Corporation, which acquired Black Creek Group’s U.S. real estate investment advisory and distribution business on July 1, 2021. Positioned on a 34-acre site near the intersection of Pittsburg Avenue and Richmond Parkway, the new distribution center incorporates 481,487 square feet.

“We’re pleased to deliver a state-of-the-art industrial facility to our client on time and on budget despite the industry headwinds that continue to persist,” commented Ed Rodriguez, Director of Project Management at McShane. “500 Pittsburg provides modern features and a great location in the East Bay Area and will serve the client and future tenants well.”

The development features a concrete tilt-up panel exterior with storefront windows. Inside, the space integrates a 36′ clear height with 84 truck docks, four drive-in doors, 7″ concrete slab floors and ESFR sprinklers.

McShane also completed a 4,788-square-foot speculative office build-out for a future tenant including open office space, private offices, a conference room and a break room. Finishes throughout the office space meet the client’s national standards and include quartz countertops throughout.

Additionally, the firm widened Richmond Parkway and Pittsburg Avenue, adding turn lanes and new traffic signals.

During Phase I of the project, McShane performed extensive ground improvements, including wick drains, deep dynamic compaction and grading.

HPA Inc. provided architectural services for the project.

McShane to Build Kirwan Supportive Apartments

McShane Construction Company has been selected by Over the Rainbow (OTR) to provide design-assist construction services for Kirwan Apartments in Waukegan, Illinois. The 24-unit affordable housing residence is designed to allow adults with physical disabilities to live independently. The development is named for Leo Kirwan, an OTR resident, board member and advocate for accessible housing.

“It’s an honor to help Over the Rainbow further their mission to provide affordable, supportive housing for adults with disabilities,” shared Susan Uhlarik, Director of Multi-Family at McShane. “Kirwan Apartments will allow its residents to live independently in an environment designed specifically for their needs.”

Positioned on a one-acre site adjacent to OTR’s Gustafson Apartments, the three-story wood frame building will feature a Hardie panel exterior. The building was designed to be compact to maximize landscape and minimize cost. Its clean and simple lines lend to a modernist design, while the exterior colors compliment the surrounding environment.

The barrier-free units will be offered in one-bedroom configurations. Tenant amenities will include a community room and laundry facilities. Additionally, the site will provide 20 surface parking spaces.

The building was designed with sustainability in mind to meet requirements for ComEd’s Energy Efficiency Grant for affordable housing.

As a design-assist project, McShane’s engineers collaborated with the owner and architect throughout the design and pre-construction phases. Benefits of this delivery method include a reduction in cost and schedule overruns, improved constructability and added value to the project.

Completion of Kirwan Apartments is slated for January 2023. Weese Langley Weese Architects is providing architectural services.

Trends in Midwest Multi-Family Construction

The start of the pandemic brought concern that multi-family demand would decline as people fled apartments in search of more space. While luxury and market-rate developments saw higher vacancies in 2020, the market quickly rebounded. By mid-2021 demand for multi-family was at the highest levels recorded and it has remained strong since. Young adults who moved home during the pandemic moved back on their own and recent graduates hit the housing market for the first time.

Affordable housing saw increased demand throughout 2020 and 2021. McShane completed Fifth Avenue Apartments in Maywood, Illinois, in early 2021 and the affordable housing residence received an astonishing amount of interest with more than 3,000 letters of interest and 1,700 applications for just 72 units.

The pandemic also accelerated migration to smaller cities and suburbs. While some are opting to live in single-family homes, others are choosing apartments in secondary and tertiary markets because they offer more space, a lower cost of living and good public schools. This trend is especially conducive to our business as we have a strong presence in suburban Chicago, as well as a growing presence in the smaller Midwestern cities of Madison and Milwaukee, Wisconsin.

Another trend we are seeing is increased popularity in suburban mixed-use communities that offer housing, employment and entertainment within a single development. These developments provide many benefits of a city, but with other advantages of the suburbs. One such example is CityGate Centre in Naperville, Illinois. CityGate Centre integrates restaurants, retail, a hotel, wellness services, offices, and will soon offer housing. Our team is underway with Lincoln at CityGate, which will incorporate 285 luxury apartment units.

While developers will continue to face material production bottlenecks, cost escalation and labor shortages in 2022, we remain optimistic about the year to come. Demand for multi-family doesn’t appear to be diminishing anytime soon, and low vacancy rates combined with rising rents will lead to an increase in project starts. As one of the country’s top multi-family contractors, we look forward to the opportunity to meet this demand as we grow our presence nationwide.

McShane Completes 430,000-SF Addition to Abt Electronics

McShane Construction Company completed a 429,524-square-foot addition to Abt Electronics’ warehouse and showroom facility in Glenview, Illinois. The expansion more than doubled Abt’s warehouse space, allowing the company to improve their efficiency and expand product lines.

“It has been a privilege to work on the expansion of Abt’s facility,” shared Tom Beres, Regional Vice President – Industrial at McShane. “Abt is a household name here in the Chicago area, and we are proud to help them expand their business as they work to meet the changing needs of consumers.”

The addition incorporates two three-story office blocks totaling 22,230 square feet and 407,294 square feet of warehouse space. The office buildouts include trucking offices, security offices, a break room and open office space for future buildouts. The single-story warehouse offers a 32′ clear height, 39 semi-truck docks and 144 EOD box truck positions.

Additionally, the precast facility has pre-engineered metal canopies and EIFS screen walls for box truck loading. The semi-truck docks have full control panels with dock locks, and all dock positions have power operated doors and hydraulic dock equipment.

Abt Electronics has been proudly serving customers since 1936. Learn more about Abt Electronics at www.abt.com.