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YOUR PERIODIC UPDATE FROM BOZZUTO CONSTRUCTION

 

FROM THE DESK OF
Summer 2015

There has been much talk recently about the apartment pipeline in the Washington region and the number of units that have, or are soon to, come online. According to a recent Delta Associates report, 14,231 class A apartment units were delivered in the 12 months ending June 2015, a record which surely makes developers and investors nervous. To add to this, we have seen construction pricing increase by approximately 12% (more on smaller infill projects) over the past 12 months.

But there is some good news. Per Delta, 13,800 class A units were absorbed in the 12 months ending June 2015 – only 431 fewer apartments than were delivered! Further, while rents have been essentially flat, occupancies have increased ever so slightly. I think this has surprised many economists.

Here is more food for thought: the average age of a renter in our management portfolio is just over 37, the oldest Millennials only recently turned 34, and the youngest Millennials are still in college. Did I mention that on average, people are getting married 3.5 years later than they were in the 90’s? This also corresponds to an increase in the average age at which people elect to have children. Collectively, this growing demographic tends to be “renters by choice” —very good news for our industry.

Yes, I do think that in the short term (next 12-36 months), there may be more apartments built than are needed, but I also believe that, in the long term, given these statistics and demographics, we are very fortunate to be living and working in the DC/Baltimore/Philadelphia region and specializing in multifamily housing.

 

 

Mike Schlegel  |  President, Bozzuto Construction Company | mschlegel@bozzuto.com

 

 

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GET TO KNOW

 

Rob Rodgers
Senior Project Manager


Describe your role at Bozzuto Construction Company.
My role is to provide overall project leadership, develop the project plan with our superintendent, and implement best practices to put our team in a position to succeed. Our collective goals are to deliver the best quality product to our owners, to be fair to our subcontractors, and to make the project a success for everyone involved.

Describe the current project you are working on.
I’m working on the Reston Station project, a 421-unit apartment community. It’s an impressive project and we have a great team in place. We’re currently doing earthwork, one of my personal favorite phases of a project. Come on out and take a tour!

How did you become interested in the industry?
I always liked building forts and tree houses as a kid. I took drafting as an elective in high school and really just followed it from there. At some point during architecture school I realized that I wanted to build instead of draw, and that set my final direction forward.

What do you enjoy most about working at Bozzuto?
The people, definitely. We still have the competitive environment that draws many of us to the construction industry, but without the silos. Everyone I have met, whether across teams or departments, is willing to help others, and there is a sense of team as a greater whole. It is the best of both worlds.

What do you enjoy most about working in the construction industry?
Things are always changing; it never gets stale. Whether it is a new project or a new phase within a project, there is always a new opportunity and challenge around the corner.

What do you like to do when you’re not working? Any hobbies?
My main “hobby” is spending time with family (including our dog) and friends. Whatever we are doing is secondary. I do like to be outside. It can be camping, hunting, snowboarding, or just sitting outside at a winery, as long as it’s outdoors.

 

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IN THE COMMUNITY

 

UMAR Golf Tournament

In May, over 100 golfers, including several Bozzuto employees, participated in the 13th annual golf tournament for the UMAR Boxing Program to support their mission to prepare Baltimore City youth for future roles as productive citizens.

Bozzuto players included Tony Most, Dan Blatzheim, Nathan Slavin, Mike Green, Brian Rennie, Brady Davidow, Bryan Quinn, Kurt Gauss, Tony Perillo, and Josh Peters. Poole and Kent, Telligent Masonry, and Barr Concrete served as Heavyweight Sponsors of the event. The winning foursome recorded an impressive score of 13 under par. Bozzuto Senior Vice President, Mike Green, won "Longest Drive" while Bozzuto Project Manager, Brian Rennie, won "Closest to the Pin" (19 inches from a hole-in-one!)
 
Dave Schorr, Vice President and Controller for Bozzuto Construction has been a longtime supporter of UMAR, which combines academic development and athletic training under one roof for at-risk youth in Baltimore through the “No Hooks before Books” program. Founded in 1999 and located in West Baltimore City, the program supports student boxers between the ages of 6 to 18 years old. The program creates and maintains a positive and safe environment for children, providing multiple activities geared to improving academic, social and athletic skills. Go to nohooksbeforebooks.org for program information.

 

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CLIENT SPOTLIGHT

 

SOME

So Others Might Eat (SOME) is an interfaith, community-based organization that exists to help the poor and homeless by providing immediate daily needs such as food, clothing, and healthcare, as well as services such as affordable housing, job training, addiction treatment, and counseling.

Construction has been selected by SOME as general contractor for the organization's $89 million Building Hope Project. In addition to serving as new office space for SOME, the new 320,000 square foot green building will offer affordable housing, job training and healthcare under one roof – the first facility in the District to combine these services in a single location.

Construction on the Building Hope Project, located on one city block directly across from the Benning Road Metro, will begin in August and is scheduled for completion in 2017.

 

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IN THE NEWS


Top 25 General Contractors

Bozzuto Construction Company ranked number 13 on the Washington Business Journal’s list of Top 25 General Contractors. Washington, DC projects include Monroe Street Market, Cathedral Commons, and the Swift Apartments & Petworth Safeway.

Strong projects such as these, as well as notable work in Baltimore's Harbor East neighborhood, Arlington, VA, and around the Metro Area keep Bozzuto at the top in a very competitive field.

 

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PROJECT SPOTLIGHT

 

Anthem House


Representatives from Bozzuto were joined by former Under Armour executive Scott Plank's urban development company War Horse, and Solstice Partners to celebrate the official groundbreaking of Anthem House in Baltimore's Locust Point neighborhood on June 3, 2015.

Baltimore City Mayor Stephanie Rawlings-Blake, Baltimore City Councilman Eric Costello, and Baltimore Development Corporation President Bill Cole spoke at the event. Upon arrival, guests were invited to hammer their initials into a wooden beam to be installed once the project is complete in Spring 2017. At the beginning of the ceremony, Crystal Thomas, the winner of Bozzuto’s “Oh Say Can You Sing?” online contest performed her rendition of the National Anthem.

Anthem House will contain 292 multifamily residences, nearly 20,000 square feet of retail space, and a parking garage containing approximately 440 parking spaces. Amenities include a 20,000 square foot elevated private park and rock garden. The private park and rock garden will be adjacent to social lounges and co-working spaces. There will be a harbor view fitness facility equipped for yoga, barre, cross training, and other uses. It will open seamlessly onto a lush courtyard with an infinity pool that overlooks the harbor. Residents can visit the entertainment room containing billiards, communal kitchen, neighborhood café, and public retail space.

 

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ACCOLADES

 

Award Finalist

The Urban Land Institute (ULI) recently announced the selection of Monroe Street Market in Washington, DC—on which Bozzuto Construction Company was General Contractor—as a finalist in the prestigious 2015 ULI Global Awards for Excellence competition.

The Awards for Excellence program was created to recognize superior development efforts based on factors that go beyond good design, such as leadership, contribution to the community, innovations, public/private partnership, environmental protection and enhancement, response to societal needs, and financial success.

Monroe Street Market is a mixed-use development consisting of three buildings which each offer distinctive residences. At the transit oriented community, residents can enjoy 83,000 square feet of vibrant ground-level retail, a 3,000 square foot community arts center, indoor and outdoor lounges, fitness center, and 27 artist studios along its Art Walk, an open-air pedestrian plaza.

 

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RECENT EVENTS

 

Groundbreakings/Openings

Conifer Village at Oakcrest: Bozzuto Construction Company broke ground in late May on new project Conifer Village at Oakcrest. This $16.6 million, 120-unit garden-style senior living development is located in Capitol Heights, MD and is scheduled to be completed in late summer 2016. The team will be the construction manager on the project working with Conifer-LeChase Construction as the general contractor. This project is a HUD financed deal with Maryland CDA funding as well.

Esplanade at National Harbor: On May 21, Bozzuto representatives, along with Peterson Companies, celebrated the opening of Esplanade at National Harbor, the first and only apartment community in the 350-acre destination on the Potomac River. Esplanade contains 262 luxury residences, more than 13,000 square feet of amenity space, 14,400 square feet of street-level retail, and a 420-space parking garage.

Cathedral Commons: On May 27, Bozzuto representatives celebrated the official opening of Cathedral Commons, a new development on Wisconsin Avenue in Washington, DC. Hosted by Washingtonian Magazine, the event featured food and drink from some of the onsite restaurants including Grilled Oyster Company and Raku Sushi. Cathedral Commons features 137 apartment residences, eight for-rent townhomes, and more than 500 parking spaces. In addition, 125,000 square feet of retail space is anchored by a state-of-the-art Giant Food.

 

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