Preconstruction requires a well-oiled machine, with each part functioning optimally. While on-site challenges are inevitable, proper planning from a committed team can navigate these bumps in the road.

Preconstruction is particularly important for ensuring structural integrity and reducing costs for wood framing, a construction technique in which lumber is used for a building’s skeletal structure. 

Colt Builders, a prominent wood framing company, specializes in prefabrication and stick framing for multifamily, student housing, hospitality and senior living properties.

Colt Builders CEO Glen Yates said the firm’s strong company culture has helped it weather tough storms, such as in 2021, when demand for wood frame homes increased but lumber prices were at record numbers and supply chain volatility caused many construction challenges. 

“We’ve had staying power for two decades because of our integrity, honoring commitments and attracting great people who believe in delivering and executing at a high level,” he said. “Even when things don’t always go as planned, we run to the problem instead of running away from it.” 

The Colt Builders team walked Bisnow through how it has maintained this momentum through its run-to-the-problem mentality and its outlook on the future. 

Colt Builders’ hands-on approach to quality control, safety and speed begins well before the company does anything on-site. Colt Builders Chief Development Officer Janusz Sakowicz said that creating a flow to the project and removing obstacles before labor gets to the jobsite is a “critical element.” 

“We control labor by controlling the inputs,” he said. “The timing of when we win the work, the quality of preconstruction and our own discipline of operating and planning are elements that allow us to control it. When those things are managed well, execution becomes much more predictable, which is our secret sauce of how we control labor costs.” 

An In-House Team That Can Identify Problems 

Another key factor to Colt Builders’ success is a dedicated in-house team that can handle the job from start to finish while troubleshooting problems. 

Colt Builders structural engineer Tres Warner, who is also the director of its preconstruction and advisory services department, said the company’s ability to identify roadblocks before a job goes into production helps ensure project success. 

“Our team’s preconstruction department is about doing more upfront work, such as reviewing the site drawings and identifying problems between architectural and structural items that may not be identified,” he said. 

This process includes firewall assemblies, fire-retardant-treated lumber requirements, hardware optimization and efficient structural detailing, where Colt Builders’ experience can help save valuable construction dollars, he said. Colt also emphasizes coordination with architectural, structural, and mechanical, electrical and plumbing trades, helping to reduce requests for information and change orders and shortening construction schedules.

Although a construction problem can’t always be avoided, it is important to catch it early, because “identifying it late may cost 10 times as much,” Warner said. 

Colt Builders was called for a 307-unit, 307K SF multifamily project in Charlotte where there was an on-site problem with drilling post-installed concrete screw anchors into post-tensioned slabs, fastening the property’s walls to finished concrete.

Warner said the problem was the team had been drilling in the wrong place, potentially costing the client hundreds of thousands of dollars in repairs due to extensive structural damage, such as broken concrete, ripped cables and a ruptured PT slab.

The team quickly identified the issue and used powder-actuated fasteners, or PAFs, which are specialized nails that are used to fasten into concrete. Warner said that while PAFs are commonly used in nonstructural applications, Colt Builders’ approach to using PAFs for load-bearing walls and shear walls has been successful.

“We supplied engineering calculations showing structural equivalency between PAFs, post-installed anchors and cast-in-place anchors,” he said. “The result was a safer project with higher production rates and lower costs. PAFs also eliminated the need for X-ray scanning of the slab and reliance on the concrete subcontractor to accurately place cast-in-place anchor bolts.”

Another project that utilized Colt Builders’ problem-solving skills was a 361-unit, four-story multifamily complex in Littleton, Colorado. 

Colt Builders provided value engineering services, backed by engineering calculations. The project documents originally required several hundred linear feet of engineered wood products, wood stud bearing walls for the lowest level. Sakowicz said that his team reviewed the work and discovered that the structural engineer had designed the stud walls for the “worst-case condition.”

“Some walls were taller than others, and some walls utilized two-by-four studs while others used two-by-six studs,” Sakowicz said. “Through our vendor, Technical Framing Solutions, we were able to analyze and optimize the stud bearing wall requirements, saving the project $150K.”

Outlook For The Future

Looking ahead, Colt Builders sees more opportunity to simplify wood framing construction by reducing field variability and creating more predictable outcomes through utilizing technology like building information modeling to dissect project plans during the design stage. Sakowicz said that the company’s vision for the future is to leverage artificial intelligence to help identify and resolve constructability issues ahead of getting on the jobsite. 

“We invest time and effort into looking into new ways of harnessing AI and bringing it to our reality,” Sakowicz said. “While AI could help us streamline some of the things that are coming through our door, we will always rely on the experience of our team to verify the accuracy and reliability of estimates.”

Colt is also expanding into more design-assist services, helping its clients in the schematic/development phase. Warner said that this is a service that many of Colt’s competitors don’t offer and the company’s extensive construction knowledge can help guide owners, architects, engineers, contractors and U.S. subcontractors.

“A lot of times we see drawings that are crazy and have unconstructible and expensive details,” he said. “The earlier we can get involved, the sooner we can eliminate these issues.”

Yates is excited for the company’s future. The company is looking into more untapped opportunities like the Midwest, but doing so with the same care that has helped it stand out in the market.

“We want to continue to provide an amazing customer experience while empowering people in our company,” he said. “Aligning our customer base to our values will help us continue to grow as we expand into new markets.” 

Join Colt Builders at Bisnow’s Dallas-Fort Worth BMAC event on May 12, where executives will speak on the state of the multifamily market in DFW with other leading CRE experts. 

This article was produced in collaboration between Colt Builders and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.

Courtesy of Continental Realty Corp.

The Dartmoor Place at Oxford Square apartment building in Elkridge

The multifamily sales market has been heating up across the D.C.-Baltimore region, with the latest deal coming in between the two cities in Howard County. 

Continental Realty Corp. paid $86.5M for Dartmoor Place at Oxford Square, a 258-unit building developed in 2019, the Baltimore-based firm announced Friday. 

The five-story building at 7200 Alden Way in Elkridge sits just off MD-295, less than 7 miles from Baltimore-Washington International Airport. It is part of the 122-acre Oxford Square master-planned community.

The building was 94% leased at the time of the sale, according to CRC. The units are 85% market-rate and 15% moderately priced dwelling units. Its amenities include a clubhouse, fitness center, children’s play space, outdoor swimming pool, grilling area and a pet spa. 

Towson-based Preston Scheffenacker Properties developed the building and sold it to CRC. CBRE Executive Vice President Mike Muldowney represented Preston in the sale.

The buyer is assuming the in-place debt on the property, a 35-year Department of Housing and Urban Development loan that has a 2.79% fixed interest rate, CRC said. 

CRC acquired the property with its Core Multifamily Fund LP, which it closed in 2022 with $146M raised. The fund had also acquired three assets in Charlotte and Raleigh, North Carolina, and Hilton Head, South Carolina. 

“After primarily targeting the southeast for our initial acquisitions for the Core Multifamily Fund, we turned our attention to CRC’s backyard in Maryland, which also offers compelling investment advantages driven by its location close to the Nation’s Capital, enduring job growth, deep labor pool, and high quality of life,” CRC CEO J.M. Schapiro said in a statement. 

Multifamily investment sales have been picking back up this year in the region after interest rate hikes cooled the market in the previous two years. The combined D.C.-Baltimore region has $6.5B in 2024 multifamily sales as of this week, up from $4.2B all of last year, according to CBRE.

The Baltimore metro area’s portion of that activity has picked up from $500M last year to $936M this year, but the region’s biggest driver has been Northern Virginia, which has seen $3.6B in sales this year and has become a “shining star” in investors’ eyes. 

Marcus & Millichap arranged the sale of Starbucks, a 3,500-square-foot net-leased property located at 9660 Kiefer Blvd. in Sacramento. The asset sold for $2,550,000.

“The property was a newly constructed single-tenant building with a 15-year corporate net lease to Starbucks,” said Yuri Sergunin, first VP investments in Marcus & Millichap’s Palo Alto office.

The buyer, an individual/personal trust, was procured by Sergunin and J.J. Taughinbaugh, SVP investments, in Marcus & Millichap’s Palo Alto office. The seller was represented by Cushman & Wakefield. The transaction included a 1031 exchange for the buyer.

The property rests in a high-visibility location near the signalized four-way intersection of Kiefer Boulevard and Bradshaw Road and is three miles from the Sacramento VA Medical Center and Sacramento Mather Airport.