Started 12 years before the Bloomberg administration's
2013 claim of starting a " first-of-its-kind disaster housing program,
creating modular apartments uniquely designed for the challenges of urban living" in New York.
http://observer.com/2012/11/home-sweet-shipping-container-nycs-secret-plans
-for-the-perfect-disaster-apartments/
Restarted and ended it in 2007/08, another 5 years before BC's Atira project.
My Discovery: In Canada, social enterprises are often in danger of becoming political enterprises,
controlled by a local political class that takes control for personal political advancement:
Projects get stuck in political time, entrepreneurs need political approval to move forward,
the project starts serving bureaucratic turf needs, and that takes precedence
over addressing the social problem with new solutions.
The Lesson: To change the world quickly and positively, bring great products and services to your customers with private citizen-run enterprise
and enterprising non-profits that are completely apolitical.
Use your business to help society in the ways you choose.
Good Stuff Happens in 1:1 Meetings: Why you need them and how to do them well
A Business Model for Modular Shipping Container Apartments
1. Pain & Opportunity
Vancouver / Victoria – Steel/Masonry Construction Costs
• Apartments/Condos starting at $300 Per Square Foot (psf)
• Projects structured around Market Value Unit cost (MVU)
• Affordable Housing Unit (AHU) allocation to obtain approval
• Owners subsidizing AHUs—each built at MVU Cost
• Rent loss + Lower Amortizable Space + Lost leverage
3. Our Agenda Today
• StakBLOC System
• Enabling Factors
• Differentiation: Innovation: New System First mover
• Differentiation: Modularity for apartments
• Differentiation: Free Enterprise incentive
• Target Niche: Low-to-Midrise Multi-story
• Break-Even & Positive Cash Flow
• Value Proposition
• Next Steps & Summary
4. StakBLOC affordable
Homes for everyone
StakBLOC Container Units
• Apartment Framing Modules
• Inspired by Lego™ blocks
• ISO Containers (ISOCs)
• Prefabricated building segment
• Low-to-Mid Density Zoning
StakBLOC Manufacturing & Construction System
• New System: Modular, Cost-efficient
5. Enabling Factors http://www.inhabitat.com/
category/prefab-housing/
http://www.containercit
y.com/
Initial Work “Fab” Refab
by Founder,
2001-02
Market-Driven
Opportunity
Containers
Political / as Waste:
Social Pain $4 / psf
Industry
Forces
6. Differentiation:
Modularity for Apartments
Continuous, year-round manufacturing
Production & Site Speed + Cost Savings
High Quality = Lower Defects
Lower waste, Sustainable, Recyclable
Standardized for Supply Chain & Delivery
No N.I.M.B.Y. - Hidden under Attractive Exteriors
Seismic Proofable
7. Differentiation:
Free Enterprise incentive
MARKET INCENTIVE TO BUILD AHU’S
Premium Discount for first partners during prototyping
Base Discount for Joint Venture partners
Public Good Discount on all units when negotiated
percentage of AHUs are included in the project
StakBLOC:
Joint Ventures to develop projects
Discounted units for specified Public Good projects
8. TARGET NICHE Town Home/Condo
1-9 stories
Low to Mid-rise Site Built & Prefab
Framework System
Multi-story Steel/Mas/Internal
$ 75-196 psf $ 75 psf $TRADITIONAL COST$ 300 psf
300 psf $ 300 $ 300+ psf
Single Family/SFD Row Housing Town Home/Condo at going rate
StakBLOC starts Mixed Type Condo/Apartment
1-3/4 stories 1-4 stories 1-4 stories = Traditional Cost
Base Price 1-6+ stories 6+ stories
$ 300
Site Built Site Built or Prefab Site Built
Less Base Disc Site Built Site Built or Prefab
[10%] $ 270
Frame & Concrete Frame & Concrete Steel/Mas/Frame Steel/Mas/Frame
Less Public Good Disc [10%] $ 243 Steel Frame/Mas
9. Value Proposition
Higher Profits Faster
Traditional Model:
Government Intervention Shining Brand Profile
Unit Unit
$300 Costs
$243 Costs
Assets Not Leveraging
Performing Snowball
Process Cost Regulatory
Affect on Hold-ups Gross & Net Costs
Margins Margins
Approval Approvals
Time Costs to Start
StakBLOC Model:
Profit incentive
10. Summary
Significant market demand
Cost Advantage, cash flow opportunities
Market-driven incentive for owners & developers
Solution addresses Political/Social pain
Solution proposes to effectively cut costs of:
Materials and Labour
Project Management and Site Development
Long-term Property Management
Future site redevelopment
11. Next Steps: 24 months
CULTURE BUILDING & FINANCING
Identify and attract value-aligned seed stage investors
Obtain personal seed financing
Build effective start-up team
DESIGN, EXECUTION & JOINT VENTURING
Prove out tech, manufacturing & construction systems
Client-test Market Feasibility, prepare first Business Plan
Get prototypes in the ground & rented out by partner agency
12. Next Steps: Immediate Needs
PROTOTYPING OBJECTIVES
Obtain expenses grant for Year 1
Obtain grants, land donation & seed funding
Obtain test order, Develop first system & processes
Assess evaluations of tenant agency & sub-lessees
Build start-up team with expertise in:
Marketing and Design Management
Financing + commercial real estate Project Management
Manufacturing Operations + Contractor Management