Trends in Midwest Multi-Family Construction

Written by: David J. Rintz, Regional Vice President – Multi-Family

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.

Alabama’s Largest General Contractors

McShane Construction Company was ranked the seventh largest general contractor in Alabama by Top Rank Alabama. McShane’s Southeast Regional Office opened in Auburn, Alabama, in 2005 and, since then, has grown to become a strong presence throughout the Southeast region.

McShane to Build 397 Apartments in Charlotte, NC

McShane Construction Company was selected by Flournoy Development Group to build a new 397-unit apartment community in Charlotte, North Carolina. The development is one of two multi-family projects McShane is currently constructing in Charlotte.

“We’re very excited to kick off this project with first-time client Flournoy Development Group,” stated Scott Hoppa, Senior Vice President & Regional Manager at McShane. “Charlotte is a great city, and we’re proud to bring our multi-family expertise here.”

Positioned on a 24.6-acre site at 930 W. Mallard Creek Church Road, the new development will incorporate five apartment buildings and 10 townhome-style buildings. The wood frame buildings feature an attractive exterior of brick and fiber cement siding.

Each unit boasts high-end finishes and features including luxury vinyl plank flooring, quartz countertops and black fixtures and hardware. Additionally, 10 apartment units contain a downstairs work space in which tenants can have an office or small storefront.

The property offers generous amenities including a clubroom, fitness center, yoga studio, co-work lounge, hobby room, bike storage, kitchen and market. Outside, tenants can also enjoy a heated pool, courtyard and green space. The site offers four freestanding garage buildings as well as surface parking.

Completion of the project is slated for January 2024. The architect is Dynamik Design.

2021 Giants 400

The McShane Companies is once again ranked among the top general contractors on Building Design+Construction’s Giants 400 lists. This year, the firm ranked #45 overall, #8 in multi-family construction, #11 in senior living construction, #31 in industrial construction and #46 in design-build construction.

McShane to Build 280 Apartments in McDonough, GA

McShane Construction Company was selected by repeat client South City Partners to build McDonough Apartments. Located at 2080 Jonesboro Road in McDonough, Georgia, the new garden-style apartment community will offer 280 units across six buildings, contained within a mixed-use project that spans 31 acres. Other uses will include for-sale townhomes and retail/commercial space.

“We’re excited to kick off another project with our friends at South City Partners,” shared Scott Hoppa, Senior Vice President & Regional Manager at McShane. “McDonough Apartments is our sixth project together, and I’m confident that it will build on the success of our past projects.”

The multi-family portion is positioned on a 21-acre site, and the three- and four-story wood frame buildings will integrate an exterior of snowbound brick veneer, fiber cement lap siding and board and batten. Units will feature vinyl wood plank and carpet flooring, tile backsplashes in the kitchen and in-unit laundry rooms and mechanical closets.

The property will boast more than 15,000 square feet of amenity space. A central clubhouse will incorporate a game room, fitness/yoga room, lobby and parcel room. Additionally, tenants will have access to an outdoor pool and pavilion, dog park and car wash.

McShane also provided pre-construction services for McDonough Apartments. The firm was involved throughout the design process, providing pricing and design feedback in partnership with the design team and ownership. By getting involved during the pre-construction phase, McShane is able to reduce cost and schedule overruns.

Completion of McDonough Apartments is slated for October 2023. The architect is Dynamik Design.

2021 Lawyers in Real Estate

Dan McShane was named to Connect CRE’s 2021 list of Lawyers in Real Estate. The award honors attorneys from across the country who excel in their practices as well as their contributions to the community.

With more than 20 years of experience, Dan serves as Chief Strategy Officer and General Counsel for The McShane Companies. He coordinates strategic planning and risk management strategies while overseeing the company’s legal matters on a national basis and providing in-house legal advice to the firm.

Dan has worked to manage legal and contractual risk for the business as it grew dramatically, both geographically and in revenue. Since he joined The McShane Companies, the firm has expanded with the opening of four new offices in Alabama, Tennessee, Texas and Wisconsin. He has also expanded the company’s legal department, hiring two new corporate counsels in the past three years.

McShane to Build Luxury Apartments in Tempe

McShane Construction Company was selected by repeat client Milhaus to build Apache, a new 219-unit luxury multi-family development in Tempe, Arizona.

“We’re thrilled to work on another project in Tempe with Milhaus,” shared Jim Kurtzman, Senior Vice President at McShane. “Located in an Opportunity Zone, Apache will bring luxury apartments to Tempe’s rapidly growing Cultural District.”

Positioned on a 4.5-acre site at 2125 E. Apache Boulevard, the Qualified Opportunity Zone (QOZ) development will incorporate two four-story wood frame buildings. The exterior façade systems will feature a mix of stucco, fiber cement board, standing seam and brick veneer.

The property will offer 6,000 square feet of amenity space, including a resident lounge with a coffee shop, a fitness center, communal kitchen, rec/game room, large play pool and spa, dog spa and park, barbeque grills and covered gathering areas. An entry experience will be located at the main entrances of the site, and the property will have vehicular gated access.

Designed with sustainability in mind, the development will be partially solar-powered with solar panels on carports to reduce electricity usage in the common areas.

Apartments are offered in studio, one- and two-bedroom configurations. Each unit will boast high-end features and finishes including luxury vinyl tile and carpet flooring, quartz countertops, tile shower surrounds and kitchen backsplashes. There will also be five live-work spaces.

McShane worked with the owner, architect and engineers during the pre-construction phase to provide improved constructability methods and determine best practices for the project’s construction. Additionally, the firm conducted value engineering to combat the current market material increases and help the project stay within budget.

McShane is also currently underway with Banyan North Tempe for Milhaus, a 310-unit multi-family development in Tempe.

Completion of Apache is slated for September 2023. The architect is CCBG Architects, Inc.

McShane Completes Affordable Senior Living Apartments

McShane Construction Company is pleased to announce that firm has completed the construction of Stonepointe, a 238-unit affordable senior living residence in Stonecrest, Georgia, for repeat client Dominium.

“It was an honor to work with Dominium on another affordable senior living residence,” commented Scott Hoppa, Senior Vice President & Regional Manager at McShane. “Stonepointe is a great amenity-rich development and an asset to the community.”

Positioned on 11.3 acres of land at 6757 Covington Highway, the four-story wood frame building features a brick- and cement-siding exterior. Units come in one- to three-bedroom configurations with one-, 1.5- and two-bathroom options. Each unit features 9′ ceilings, granite countertops, maple cabinetry, stainless steel appliances, a mix of luxury vinyl tile flooring and carpet and a private patio or balcony.

The facility also boasts best-in-class amenities that provide residents with convenient services and entertainment. These amenities include a clubroom, cards and crafts room, beauty salon, laundromat, library, theater, fitness room and tenant storage. Outside, the site provides a courtyard, grilling/picnic pavilion, community garden, bocce ball court and dog park.

“It was a privilege working with McShane, a company that has integrity beyond reproach, to provide much needed affordable housing to the seniors in the city of Stonecrest,” shared Shaun Reinhardt, Senior Development Associate at Dominium.

Last month, McShane announced the completion of Covington Crossings, another affordable senior living residence for Dominium in Covington, Georgia.

Martin Riley Associates provided architectural services for Stonepointe.

McShane to Bring 420 Apartments to Chandler, Arizona

McShane Construction Company was selected by repeat client Related Group to build Town Chandler. Located in Chandler, Arizona, the new garden-style community will offer 420 units. McShane is also currently underway with Manor Scottsdale in Scottsdale, Arizona for Related Group.

“We’re very excited to work with Related Group on another project here in the Phoenix area,” commented Jim Kurtzman, Senior Vice President at McShane. “Town Chandler will offer 420 beautiful apartment units in an excellent location in the heart of Chandler.”

Positioned on an 18-acre site, Town Chandler will incorporate 15 three- and four-story wood frame apartment buildings. The development is characterized by a mid-century modern motif, featuring clean lines with an attractive stucco, stone and breeze block exterior. Each well-appointed unit will feature high-end interior finishes and open floor plans.

Additionally, the property will offer more than 12,000 square feet of amenity space. A two-story clubhouse will incorporate a fitness center, clubroom/lounge, co-working space, theater room, sports simulator, outdoor patio and rooftop deck. The site provides two pools, a splash pad, yoga, fitness and game lawns, pickle ball courts, a snookball court, putting green, hammock garden, fire pit lounges, outdoor kitchens, an entertainment pavilion, youth interactive play area and pet playground areas.

Completion of Town Chandler is slated for February 2024. The architect is Todd & Associates.

McShane Completes Parc at Murfreesboro Near Nashville

McShane Construction Company has completed the construction of Parc at Murfreesboro on behalf of repeat client Equity Resources, LLC. Located southeast of Nashville in Murfreesboro, Tennessee, the new luxury multi-family community offers 359 units.

“We’re excited to complete this project concurrently with the opening of our Nashville Regional Office,” stated Scott Hoppa, Senior Vice President & Regional Manager at McShane. “Nashville is a great market with a lot of activity, and we are pleased to grow our partnership with Equity Resources, LLC there.”

The complex is comprised of ten wood frame residential buildings, all of which offer elevator access, situated throughout a 22.5-acre site. The property offers 165 one-bedroom units, 164 two-bedroom units and 30 three-bedroom units. Each unit features high-end finishes such as granite countertops, under-mount sinks, custom routed wood cabinetry with brushed nickel hardware, stainless steel appliances and upscale wood-finish flooring. Units also have either a sunroom or a private balcony.

The community also offers generous indoor and outdoor amenities. Totaling nearly 9,900 square feet, interior amenities include a Class A clubhouse with a cardio room and weights, a gourmet coffee and hot tea bar, a resident retreat with media and gaming and a cyber-business café.

The outdoor amenity area provides a resort-style swimming pool with an expansive Wi-Fi sun deck and soothing fountains, an outdoor grill pavilion, a car care center and a well-appointed dog park, complete with agility equipment and a dog wash.

The property also incorporates surface parking along with seven freestanding garages and electric vehicle charging stations.

Just 30 miles from downtown Nashville, Parc at Murfreesboro provides close proximity to I-24 with direct access to the city center.

Dynamik Design provided architectural services for Parc at Murfreesboro.

2021 Excellence in Construction Award – Industrial

Northwest Commerce Center received an Excellence in Construction Award in the industrial category from ABC Illinois. The award recognizes projects for their achievements in leadership, safety, innovation and diversity.

Located in Palatine, Illinois, Northwest Commerce Center is a 162,000-square-foot build-to-suit distribution center for one of the world’s largest e-commerce retailers. Positioned on the site of a former industrial adhesives manufacturing plant, the soil was severely contaminated after years of dumping excess materials into the ground. McShane worked diligently to achieve proper environmental remediation that surpassed the measures required by the Illinois Environmental Protection Agency, thereby ensuring no human exposure to contaminants.