Architects Answering the Important Questions

People often contact Modative about a project they have in mind, but they are often unsure of how to get started. Common questions we receive are:

• How much will it cost?
• What will the city allow us to do?
• How much square footage can I build?
• Is it feasible?
• How many units can I build?
• How much parking do I need to provide?
• What is the process?
• How long will it take to permit or build?
• I have a lot / want to buy a lot / want to lease a property. What can I do with it?

Modative was recently contacted by two individuals who posed many of the questions listed above. The first individual was a long-time business owner with a hard-to-lease commercial auto body shop in Los Angeles. The second was a young entrepreneur looking to find a property in order to open a new restaurant/bar concept. With both of these clients, their long term plans were contingent upon taking really important first steps to decide what to do with the property they own/lease/were looking to purchase or lease.

Our services often include conceptual renderings like this one for the aforementioned restaurant/bar in Los Angeles. These renderings are valuable tools for our clients (and their investors) to envision the project's possibilities.

Since the economic climate has shifted downward so dramatically, more and more of our clients are requesting that we provide answers to important questions in order to guide them in the decision-making process before they spend too much of their cash reserves. In our ongoing efforts to give people insight into the helpful services we provide here at Modative, we’d like to share a service in which several of our recent clients have had a particular interest: Site Evaluation and Planning Services.

The beauty of our Site Evaluation and Planning Services is that within a few weeks, for a smaller financial commitment, we can provide valuable insight into what can be done with a property. The level of detail provided in our analysis is catered to the clients specific needs. Some just want the basics, like of what uses are allowed and the code restraints, while others want a more detailed investigation, like program development, preliminary layouts, conceptual renderings, and even preliminary budget analysis of construction and soft costs (architectural, consultants and city fees).

A descriptive 3D Plan we provided as part of the Site Evaluation and Planning Services for an auto body shop conversion into office commercial.

While we frequently provide these services for ground-up projects such as Residential Small Lot Subdivision projects, we also do quite a few for residential and commercial rehab and remodel projects.

Check out our Site Evaluation and Planning Services page to download a sample report we developed for a commercial rehab project and learn more about how these services are a great way to get a project started without a huge upfront commitment.

 

Download a sample Site Evaluation and Planning report:

Site Evaluation + Planning Services A sample case study of a commercial rehab and former auto body shop in North Hollywood, California.

 

Contributors to this post include Derek Leavitt, AIA, Michael Scott and Krystal Návar.

The Good & Bad of Starting a Building Project Now

So, is now a good time to start a building project? While it is a scary time, there are opportunities abound for those that have the courage and means. I am no fortune teller, but I can dish out a bit of what I've heard and experienced in the last few months. Of course I'll also throw in some invaluable gut intuition.

The Bad

• Banks - Lending is tight. Really tight. As a banker recently told me, "our current appetite for lending is small." He went on to say that the easiest type of loan to get these days is for an owner occupied building. That is their way of saying if you're building it for yourself to occupy (a home, remodel or commercial building) and you qualify, you may have some of their money.
• Uncertainty - The development attitude in the recent boom was build it and they will come. This is not the case anymore. You have to be careful what you build, for whom, and at what cost.

The Good

• Cheap Land - The price of land seems to be back to where it needs to be to make development projects work again. People assumed that the ever escalating price of new homes and condos was all developer greed. It was not. High land prices and construction costs dictated high sales prices.
• Foreclosures - OK, foreclosures are bad. Someone loses, banks fail. This is one of the main reasons we got into this mess, right? I get it. Now for the bright side. Foreclosures can be opportunities. The cheap real estate they offer allows for new opportunities - a quick condo flip, land for your new home, the chance to develop a small project, etc.
• Cheaper Construction - The price of materials and labor have fallen due to demand reductions. Almost all material prices have been in decline since the summer of '08. Contractors are hurting. Less work for them means they will take on projects for smaller overhead and profit percentages. Quality contractors are also taking on smaller jobs that they wouldn't touch a few years back.
• Cheaper Soft Costs - It pains me as I write this, but the bad market has also lowered the costs of architects, engineers and all the other people that get you to the point of construction and beyond. Why? They are also hurting.
  
• Faster Permitting - We do a fair amount of architecture work in Los Angeles, and the difference at City Hall these days is astounding. What used to be a four hour wait to submit for plan check is now a four minute wait. In our experience, their processing times are much faster as well.
• Time - Time is the typically bane of the architect and owner's existence. Building projects take time. They have to be designed, coordinated with consultants, documented and permitted. All this adds up to a long process that can be quite burdensome. Now, however, this time factor can help with some of our major negatives. Banks will start lending again. The market will recover. So when you think of a building project, think about the time involved. Many projects take about a year to get to permit/construction start (when you need that construction loan), then the construction can take another year (when you move in or need those prospective buyers.) So ask yourself where you think things will be in one to two years.
• Emerging Trends - Major slowdowns are often times of reflection and change. This is very true in the building biz. Of late, I've seen a strong desire for smaller, more efficient, green buildings. This trend comes both from awareness of climate change and our financial need to do more with less. I like this trend and think that it'll bring about some very innovative and evolved projects.

 

Do you have any thoughts on this? Questions?

Opportunity in a Down Economy

Our long time friend and professional collaborator Kayo N. Libiano found a great quote very relevant to today's times and passed it along. I will now pass it along to you.

"Never before in the history of America has there been so great an opportunity for practical dreamers as now exists. The six-year economic collapse has reduced all men, substantially to the same level. A new race is about to be run. The stakes represent huge fortunes which will be accumulated within the next ten years. The rules of the race have changed because we now live in a changed world that definitely favors the masses, those who had but little opportunity to win under the conditions existing during the depression, when fear paralyzed growth and development.

We who are in this race for riches should be encouraged to know that this changed world in which we live is demanding new ideas, new ways of doing things, new leaders, new inventions, new methods of teaching, new methods of marketing, new books, new literature, new features on radio, new ideas for moving pictures. Back of all this demand for new and better things, there is one quality which one must possess to win, and that is definiteness of purpose, the knowledge of what one wants, and a burning desire to possess it."

-Napoleon Hill, from "Think and Grow Rich"
First Published in 1937

With all the doom and gloom in the media today, it's refreshing to rethink these times as times of opportunity, innovation and courage. When the economic downturn all shakes out, will the winners be the ones that ran and hid?  Just like back in the 1930's, sticking with the status quo will not lead to easy success. The optimists and innovators will will use this time wisely and hopefully change the world for the better in the process.

Fay Ave. Small Lot Project - First Look

After months of design and tract submittal preparation, here is a glimpse of our latest small lot subdivision project here in Los Angeles. This project, called the Fay Avenue Art District Dwellings, is only two blocks away from our Venice Boulevard small lot project. This design for these seven homes is inspired by the growing art district in the area.

Fay Ave. Art District Dwellings is currently in design development and will be posted to the website in the coming months with more images.

The Kayo Connection

Design

Although Modative is at its core an architecture firm, we have always been interested in expanding beyond this traditional role into both development and construction. Hence, the whole "Design, Develop, Build" tag line (see below) and philosophy. As of several months ago, I'm happy to announce that through collaboration, our push into these two other fields is complete.

Develop

As previously announced, we have had an ongoing collaborative relationship with Pacific Beacon Properties, LLC, a development company, working on two small lot subdivision projects in Los Angeles. We not only provide architectural services for Pacific Beacon, but assist with development analysis and decisions.

Build

For the "build", we have teamed up with Libiano Construction Inc., headed by Mark Libiano. We have known and worked with Mark for many years and the results have been great. Libiano Co. is also involved the the two small lot subdivision projects, offering his construction expertise throughout the design and construction process. Having a close collaboration with Mark has proved so successful, that we have decided to offer this collaboration between architect and contractor to other potential clients as a true design/build team.

The Kayo Connection

With this design + build collaboration comes the opportunity to collectively market our services as well. This is where Kayo comes in. Kayo is a long time (11 year) friend and colleague of the three founders here at Modative. She also happens to be Mark Libiano's wife. So, who better to go out there and spread the good word of both entities.

Just as we here at Modative have let you know a bit about ourselves in the profile section of our website, we thought we would give you a sneak peak into the life of Kayo N. Libiano...

Early Years

Canadian born, Kayo moved to Southern California at the age of 3 and began her training in classical ballet, continuing as an avid dancer for over 17 years. She attended dance academies in the OC, LA and even studied ballet in Japan for a year, so it was not surprising that she greatly appreciated the arts and cultures of different countries from an early age. Though, what did come as a surprise, was when she wrote in an essay in Junior High English class that she wanted to be an architect, NOT a dancer when she grew up. Her thought process was that the body deteriorates with age, but the creative mind lives on... What sealed the deal of her conviction was when she fielded comments like; “There aren’t many famous female architects in the world” or “How will you succeed in such a male dominant profession?” Kayo’s stubborn and tenacious personality took hold and she set out to prove everyone wrong.

Fight On!

The instinct to create personalized spaces always interested Kayo and she was constantly rearranging furniture, designing accessories and painting pictures on the walls in her family home. Her first sewing machine was gifted to her at the age of 10 and though dance was her #1 passion, making her own clothes and throw pillows came in as a close second of her favorite things to do. By the time she graduated from High School, she had completed 3 years of technical drafting courses as the only girl in the classes and her hopes of attending architecture school were cemented in place. USC served as a training ground where she honed her skills and where she met many of her future colleagues whom have greatly influenced her career thus far.

Experiences in the Field

Post graduation, Kayo went to work for David Jay Flood Architect (DJFA) with her friends, Derek Leavitt and Michael Scott whom both graduated a year before her from USC’s Architecture school.As a team player, she worked on several architecture and interior projects.From DJFA, Kayo took a job as Project Manager at Jacquez Marquez Architects (JMA), where she got a taste for designing high-end homes and day-spas in Beverly Hills and Greater Los Angeles.

Going Corporate

Knowing the importance of the great American Corporation on the economy in the United States, Kayo worked for Merle Norman Cosmetics as a franchise designer, where she built-out stores and oversaw installations for studio owners across the nation from Las Vegas, Chicago and New York.

One of the Guys

As girly as Kayo might appear on the outside, she has no problem sporting a hardhat and a construction belt on-site, or dealing with city officials.Whatever it takes to get the job done, she is up to the task, even if it means roughing it with the boys.Her path crossed with Christian Návar, another old friend from USC at Studio 9one2 Architecture when she moved to the South Bay. As a designer and project manager, Kayo kept the office organized and had the opportunity to collaborate on beautiful contemporary homes, commercial buildings and most importantly, developed contacts with a slew of subcontractors which are vital connections in the building industry.“It's all about who you know and how well you can keep up good public relations!”

To Have and to Hold

The little secret to Kayo’s success in architecture comes from her husband Mark, whom she dated since her senior year at USC. Being a General Contractor by trade, Mark has steered and coached Kayo through the nuances of the architecture/construction world and while letting her make her own mistakes, has above all, taught her what it takes to survive in the admittedly “male dominant” building industry. Today, Kayo works hand in hand with Mark (whom she married in 2007) to build his growing construction company and also acts as the link between Modative and Libiano Construction, Inc. as a Design + Build team. She heads-up the two companies’ marketing and is an enthusiastic supporter of both thriving businesses.

LA & Enterprise Launch $100 Million Fund for Affordable Housing

Developing affordable housing in Los Angeles just got a bit easier as the City of Los Angeles and Enterprise Community Partners announced this week a $100 million fund aimed at providing financial assistance to non-profit and for profit developers of affordable housing projects.

More information on this fund can be found in this MarketWatch Article as well as through Enterprise.

Here at Modative we are interested in the opportunities this fund can provide for innovative affordable housing projects in Los Angeles. Although much of affordable housing is geared towards the rental market, we have always had an interest in providing home ownership possibilities for people of all income levels utilizing the small lot subdivision ordinance. More info on  Small Lot Subdivision in L.A.

Development Fact of the Day - Dubai

"In the six years since the Twin Towers fell, a thousand skyscrapers have been rising on the Arabian Gulf."

-Metropolis Magazine, Nov. 2007

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The Burj Al Arab, A Dubai Icon

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The UAE (United Arab Emirates) is growing fast. Nowadays, Dubai is considered to be at the forefront of this building boom, developing at a breakneck speed that is hard to ignore. This enthusiasm for development is overwhelming and the barriers to "getting things done" seem minimal compared the lengthy processes that developers often endure here in the U.S.
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The next decade will be very telling as Dubai and other Emirates showcase their economic growth in this very tangible way - real estate development. Hopefully the freedom that Architects and Developers have in this region will lead to real innovation that goes beyond pure spectacle. Dubai is an opportunity to address multiple environmental, social, and urban issues with built examples - projects that are both beautiful and responsible.

Modative to Start 4th Small Lot Project

This week Modative begins work on our fourth small lot subdivision project in Los Angeles. The details of this new project will be released in the next month or so. The following is a list of our small lot subdivision experience to date:
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1. Project Name: Dunsmuir Ave. Development
# of Units: 3-4
Status: Feasibility Study Only - complete 2006

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2. Project Name: Lemp Ave. Development
# of Units: 4
Status: Feasibility Study Only - complete 2006

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3. Project Name: Venice Blvd. Development
# of Units: 6
Status: In Design Development & Subdivision Process - Ongoing

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4. Project Name: New Small Lot Subdivision Project
(Can't release more info...yet)
# of Units: 7-9
Status: Just getting started...

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For those wondering what Small lot Subdivision is, I have reposted some info on this (relatively) new Los Angeles Ordinance below.

Small Lot Subdivision in L.A.

This post is a repeat of a post from our old news page on 12.03.07.

Los Angeles has a housing shortage. More specifically it has a shortage of affordable housing. During the latest housing boom, housing prices rose at a dramatic rate, putting home ownership within Los Angeles out of reach for many.

To address these and other housing issues, the city of Los Angeles implemented the Small Lot Ordinance in January of 2005. This innovative ordinance allows developers to subdivide land into smaller lots then previously permitted, providing new types of (fee simple) ownership housing for LA.

At Modative we are dedicated to developing an expertise on this new type of development. We developed the following chart outlining the benefits of this code.

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My Brother in The New York Times

My brother, the developer (Grant) is in the New York Times today. The photo above is from the article.

See Article Here

Lorcan O’Herlihy (Architect) and Richard Loring (Developer/Builder) did a nice job with this project; another example that there is still quite a market for modern multi-family housing in Los Angeles.

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My brother/Pacific Beacon Properties, LLC and Modative are currently developing/designing a six-unit housing project on Venice Boulevard here in Los Angeles utilizing the new small-lot subdivision ordinance. Even with the current housing slow down, we are enthusiastic about the future of these type of developments.