Thanks to high rents, New York City is losing one of its longtime modular construction companies at the Brooklyn Navy Yard. And the news could send ripples through the city's prefab construction scene. Capsys, a pre-fab builder founded in 1996, was paying $4 per square foot for its space in the Navy Yard, far below what other tenants were paying. The going rent, $20 per square foot, for manufacturing space at the Navy Yard is already set below market to retain firms that would otherwise not be able to afford to do business in the city. Upon learning in 2010 that their longterm lease was not being renewed, Capsys went hunting for new space. The advantage of local prefab construction is cost and quality control. Building are constructed at the factory by (usually) nonunion workers. Architects can check in on the projects, correcting any flaws before the pieces are shipped. Although rents are lower in New Jersey and Pennsylvania, being based locally cuts down on expensive overland shipping costs. Recently, though, new regulations require modular units to have an (expensive) police escort when the units are ferried to construction sites. For almost ten years, Capsys was the only modular builder in the Navy Yard until Forest City Ratner moved its operations there. With new owners of Forest City's Pacific Park, it looks like Forest City's modular building operations may close, though this could be due less to rising rents and more to design issues that incur costs. The shortcomings of Pacific Park's B2, the SHoP Architects–designed world's tallest modular tower, have been widely documented. Capsys has designed 55 micro-apartments for Carmel Place (the building formerly known as adAPT NYC), and Alexander Gorlin's Nehemiah townhouses, among other projects. When the company closes shop, Capsys will sell its intellectual property to a Pennsylvania company.
Posts tagged with "Forest City Ratner Companies":
It has been a bumpy road for Brooklyn's controversial Atlantic Yards development. The ten-year project-in-the-making is in the news yet again. According to the New York Times, 50 to 80 percent of Atlantic Yards is now up for grabs. Developer Bruce C. Ratner, chairman of Forest City Ratner Companies is on the hunt for an investor to buy the lion's share of the development for a hefty sum of up to $800 million. Forest City would still hold the reigns over the future development of the project. The plan for this swathe of land in the downtown Brooklyn vicinity would include 14 residential buildings and 6,000 apartments of which thirty percent are committed to moderate- and low-income housing. One motivation behind this sale is to accelerate the construction process, which has experienced delays. Development watchdog site, Atlantic Yards Report, stated in response this announcement and the Times article: "Real estate analysts speculate that Mr. Ratner’s company could reap as much as $800 million from the sale of 50 to 80 percent of the remaining project. Well, that's an estimate, but if Forest City has invested about $500 million in cash, as the company said in June, that looks like a rather significant profit. So that's a pretty generous headline—'enhance Atlantic Yards'—as opposed to 'cash out/make profit.'"