Thursday, April 18, 2013

Smart Apartment Developers Stay on Top

Multi-family construction is booming right now and demand seems insatiable. But we all know that's not going to last. Smart developers look to maximize value for the long term and solid, energy efficient construction pays off.

According to a survey, 86% of Americans would prefer to live in an eco-friendly space and 55% of those are willing to pay more in rent to do so.  Additionally,  42 % were willing to pay up to an extra  $100  to live in a green apartment, and 13% would pay even more than that.

PolycreteUSA believes sustainable construction must also be fast, strong and economical. That's why we're dedicated to making it EASY to design, build and own energy efficient buildings.

Smart developers know that Polycrete Big Block commercial grade insulated concrete form system eliminates subcontractors, saves money and gets their project completed fast. Polycrete®  ICFs get you a structural wall, fully insulated and ready for interior and exterior finishes all in one step.   IT’S EASY.

ICFs are forms for building reinforced concrete walls. After the concrete cures, the forms stay in place and serve as both the building’s insulation and the attachment point for sheet rock and your exterior finish.

There's a tax benefit to building with Polycrete, too. In order to encourage energy efficient construction, The Energy Policy Act of 2005 allows building owners to earn a Section 179D Federal Income Tax deduction of up to $1.60 per square foot. It's valid through the end of 2014.

But there are a whole bunch of other benefits to building ICF Multi-Families. That section 179D deduction is peanuts compared to your annual recurring savings. Here’s a few to mull over:

  • Annual insurance costs will be significantly lower than “sticks and bricks” because concrete buildings don’t burn like wooden ones do.
  • Monthly common area HVAC costs will be 40% less because your envelope walls will be R26+ and have minimal air infiltration.
  • Occupancy rate will be higher. Here’s 2 reasons:
    • Energy efficient apartments are more desirable (lower cost) to tenants.
    • Acoustic values of STC 52+ make a very quiet building and superior acoustic performance increases occupancy rates.
  • Lower construction interest. ICF walls go up much faster than wood. What’s your interest saving going to be if you shave the last 4 weeks off your construction loan and accelerate your rental revenue by a month?
A recent Massachusetts Institute of Technology study found that concrete buildings have a useful life of 75 years. This means that condo conversions will sell faster and when you divest yourself of your property 15 years from now, you’ll be selling a 21st century high-performance multi-family development only 20% into its useful life.

Savvy apartment developers know that environmentally friendly apartments have a lower turnover velocity and new green developments lease up fast. As multifamily development continues towards saturation, developers need to know about our company. Contact us today to learn more.   800-570-4313