Builder - December 2008 - (Page 64) away from anything that’s higher than three stories or over $500,000 in scope. That way, he avoids mixing with larger commercial contractors that can come to the table with bond financing. At least one builder, though, isn’t shy about going up against larger competitors. Carmen Dominguez, who owns the custom builder Homes by Carmen Dominguez in Orlando, Fla., is in the process of having her company certified as a minority contractor in preparation to bid on some of the $1.1 billion in public works projects in her market. Dominguez has some experience with commercial projects already: She got her start in construction by building medical offices. And as her company’s home building activities have slowed (at press time, it was finishing a $1 million home but didn’t have other orders), she has joined forces with other companies on private-sector commercial projects such as renovating a hospital. “What I bring to the table is my expertise in custom building, which are jobs that require great finishes.” That expertise is relevant in the commercial world, too, she says. Dominguez points to a 4,500-square-foot office she’s renovating for an accountant and says, “I’m making it a lot warmer.” WORK IS WHERE YOU FIND IT Getting Started Mixed-use communities are a good training ground for builders looking at commercial, says one developer. T he closest that most home builders get to commercial construction is their involvement in mixeduse communities that combine housing with offices, retail, and other nonresidential structures. But at least one developer thinks such projects are a good place for builders wanting to expand into commercial and industrial projects to cut their teeth. “The processes and procedures for mixed-use developments are not all that different from strict residential,” says Taylor Downey, manager of community development for Weyerhaeuser Real Estate Co. (WRECO) in Madison, Ga. “You have more conversations with the local planning and zoning folks, and the infrastructure becomes more critical. It can also be more expensive, but there’s more potential for added value, too.” WRECO has received “considerable interest” from builders wanting to be part of its 586-acre project in New Bern, N.C., that will have more than 1,000 housing units plus retail and a hotel. WRECO also has in the works an 800-acre development in St. Tammany Parish near New Orleans and a 2,000-acre mixed-use community in Onslow County, N.C. Downey says these “new kinds of developments,” with their live, work, and play components, are being brought on by “the economic and infrastructure demands in all of the geographies we work in. They answer a lot of demand questions and are what municipalities are looking for.” He says WRECO has done similar communities in the Pacific Northwest, and the concept is now “migrating” to all of WRECO’s builder divisions. MIXING IT UP: WRECO’s 586-acre development in New Bern, N.C., will include a town center with offices, parking, and a 300-room hotel, as well as 1,168 home units. There’s no question that more builders are turning over every rock to uncover new business. Last December, Budzowski became NAHB-certified as an aging-in-place specialist, a designation he now markets to owners who want to stay in their houses longer. He consults with physical therapists or caregivers “to determine what [the owner] can and can’t do,” and then remodels accordingly, such as making a home wheelchair-accessible or improving its lighting. Budzowski recently spoke about aging-in-place to a senior citizens group in Independence, Ohio, and if that visit produces business, he intends to reach out to other seniors groups. Based on its success with the bus terminal project, Diamante Custom Homes is now promoting its services to markets farther away. It relaunched its Web site to be more generic and spends more with search engines so that its name pops up more prominently for markets such as Austin, Texas. Sanchez says that he is planning to open a sales office in Port Aransas, Texas, a coastal vacation community two and a half hours from San Antonio, that would target both residential and commercial customers. He expects commercial construction to represent 25 percent of his business in 2008, versus 10 percent to 15 percent in previous years. Builders such as Sanchez and Nakamura, whose companies have remained reasonably active on the residential front during the downturn, are also eager to sustain their remodeling and commercial businesses long term. That’s true as well of Lonnie & Chad Brown Builders in Versailles, Ky., a company that will build around 35 homes in 2008, down slightly from the 45 it built the previous year. It will also complete 25 remodeling projects. Owner Lonnie Brown says his company will continue to bid on remodeling projects even after the newhome construction market revives. When asked why he would continue relying on lower-margin renovations, Brown responds philosophically. “Well, you can’t eat a lot of filet mignon, but at least you can eat.” B courtesy weyerhaeuser real estate co. 64 ■ B U I LD E R de c e m ber 2008 W W W.BUILDERONLINE.COM http://WWW.BUILDERONLINE.COM
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