GlobeSt.com: Bozzuto Construction Eyes $350M Pipeline for 2013
December 12, 2012
Bozzuto Construction Co. anticipates putting more than $350 million to work in 2013, according to its president Mike Schlegel. "2014 looks very positive as well," he tells GlobeSt.com. In fact, he says, the company is very bullish about the next decade. "While there may be some temporary overbuilding in this market…the long term demographic forecast is outstanding for mixed-use / multifamily."
Schlegel made his comments after the company announced four development deals totaling $107 million. The projects include Petworth Safeway in Northwest DC, Pollin Memorial Community Development in Northeast DC, Kingsview Village Apartments in Germantown, MD, and Tyler House Apartments in Northwest DC.
The Petworth Safeway & Residences development will include an urban concept Safeway retail store, two levels of below-grade parking and five levels of apartments. The $40 million, 218-unit community is being developed by Duball, LLC and is designed by architect Torti Gallas and Partners. The project is expected to deliver in Summer 2014.
MetroTowns at Parkside, also known as The Linda Joy and Kenneth Pollin Community, is a $19 million construction contract for Enterprise Homes. It is designed by architect Torti Gallas and Partners. It is expected to deliver in early 2015.
Kingsview Village Apartments is a 195-unit, $20 million garden-style community developed by Pleasants Development, Inc. and designed by Heffner Architects. Construction is scheduled to begin in January 2013 and anticipated to deliver in Spring 2014.
The Tyler House Apartments is a 284-unit affordable housing community located at the southwest intersection of North Capitol Street and New York Avenue in Washington, D.C. The renovation will come to $28M million.
"The environment is terrific if you are a contractor specializing in mixed use/multifamily projects," Schlegel says. "While other market segments are starting to recover like retail, office and hotel, the recovery has not been as productive as our market segment." That said, he continues, "we are starting to see significant inflationary pressure from our subcontractors and suppliers. I predict that we will see the cost to build multifamily projects to increase 7-10% in 2013."