The Daily Parker

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A Chicago factory is making 3-flats

This is kind of cool, and could really help the city:

Skender, an established, family-owned builder in Chicago, is making a serious play in a sector associated with young startups: modular construction. The company is building steel-structured three-flats, a quintessential Chicago housing type that consists of three apartments stacked on top of each other in the footprint of a large house. It believes it can deliver them faster and at lower cost at its new factory than by using standard methods of construction.

Even with humans and not robots doing the work, the company is confident that continual refinement will yield efficiency. A three-flat apartment building can now go up in 90 days, Skender claims, instead of nine months. Swanson estimates that the three-flats will cost $335,000 per unit to build, not including land. In time, company leaders hope that economies of scale and increased efficiency will bring down that price.

As well as economies of scale, proponents of modular architecture tout its freedom from weather-related delays, unpredictable site conditions, and fragmented supply chains. Those all stand to benefit Skender. No subcontractors will work in the factory, which will avoiding squabbles between HVAC or plumbing specialists who might blame each other when something goes wrong. But that also means Skender assumes all the risk. That has undone some past experiments in prefab and modular building.

At the factory’s opening, 25 people worked there, and Skender plans on hiring five more per week till it’s fully staffed at 150, all union labor.

I might not want to live in a pre-fab building (I'm partial to 100+-year-old historic buildings), but lots of other people would. At $335k to build, a 3-bedroom apartment could sell for $500k and make some money for the builder. $500k implies rents around $3,200 per month, but that or more is what many landlords already get in affluent parts of the city.

I'll keep my eyes open for the first Skender apartments that open near me.

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