In Multifamily Renovations, Time Is Money. The Right Contractor Can Save Both
With multifamily projects, timing is everything. Every week spent building or renovating units is a week those units sit vacant and owners are unable to charge rent. One factor that can determine whether a project is delivered ahead of schedule, on time or late is the contractor.
“Multifamily renovations can be expensive enough on their own, but you’ll run into a host of unexpected costs if you don’t choose the right contractor,” said Johnny Moseley, founder of D.C.-based Moseley Multi-Family. “A lot of the time clients don’t realize until it’s too late that they’ve hired a contractor with little experience in their particular project type, an unreliable supply chain or worse.”
Moseley has 14 years of experience in multifamily construction and renovations, and he understands the skills, staff and materials a contractor needs in order to meet deadlines. He also knows that time-sensitive projects can be especially difficult, which is why developers need to be sure they’re choosing the right contractor.
“There are several things to look for when choosing a contractor,” Moseley said. “An experienced contractor will make sure they have all materials procured for every step of the construction process. If you start work before that point, it can extend the building schedule, stretching out what could be a fast, efficient job.”
Moseley added that clients should consider choosing a self-performing contractor who doesn’t employ too many outside subcontractors. This way, the contractor has better control over the timeline of a project and does not have to rely on the availability of subcontractors who may be booked for additional projects and can’t adjust their schedules according to a project’s needs.
Additionally, developers want to be sure they are choosing a contractor large enough to handle the scale of their project, since they have the power to leverage to negotiate supply chain pricing or lead times.
Moseley Multi-Family primarily uses its own internal workforce to eliminate scheduling conflicts. The company is also the nation’s largest multifamily renovation contractor and has been able to leverage that fact to reduce material costs and have priority with manufacturers.
Moseley recommends that when searching for a multifamily contractor, clients look for companies that are solely focused on multifamily renovation, so they can feel confident that the team has the experience needed to get the job done. When clients make that choice, their projects can not only be completed on time and within budget, but may even be able to exceed expectations.
He cited a recent project that the Moseley team worked on in Washington, D.C. The Varsity Investment Group had purchased Georgetown Suites, a hotel, and was planning on converting the 222 units into luxury multifamily housing.
“No project is on a tighter deadline than these types of renovation projects,” Moseley said. “The company had already purchased the building, and now they needed to get the assets renovated as soon as possible so they could begin leasing and start earning income. Time was of the essence.”
According to Moseley, a traditional, non-specialty contractor would likely take at least nine months to complete this job, while other contractors may be able to get it done in six months. Moseley, however, was able to finish the work in three months.
As a result, Varsity was able to get the new multifamily units up and running faster and, more importantly, was able to start leasing sooner than the company had expected.
"We knew as we began contemplating the acquisition of Georgetown Suites that we would need an agile contractor who had the experience and in-house team to aggressively execute our vision in a consolidated timeframe," Varsity Investment Group partner Scott Shinskie said. "We turned to Moseley because they checked all the boxes in terms of experience, performance and flexibility. Johnny and his team's 'get it right' attitude has allowed the project to stay on the tracks."
Shinskie added that he looks forward to Mosely Multifamily closing out the project for his team.
“Saving those six months helped our client increase their first-year net operating income by more than $6M,” Moseley said. “It all came down to the fact that they did their research and were able to choose the best contractor for the job.”
This article was produced in collaboration between Studio B and Moseley Multi-Family. Bisnow news staff was not involved in the production of this content.
Studio B is Bisnow’s in-house branded content studio. To learn more about how Studio B can help your team, reach out to email@example.com.