The South Dade Industrial Building project is a great example of a design-build where all parties collaborated and worked together. This made all the difference for a project that had numerous setbacks, due to the pandemic, but was still completed on a timely basis, at the original base budget.
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Background on the South Dade Industrial project
The Genet Property Group purchased the lot in 2015, which already had one building on it (L-shaped), and contracted Danto Builders for a design-build that would complement the existing building. The goal was to maximize efficiencies in the building process, and to minimize costs and time delays.
Unfortunately, the project began before the COVID pandemic, which postponed work right after it had been already been permitted. On the positive side, there was such an increase in residential construction in the South Florida and more specifically the Princeton / Homestead area, Genet decided to move forward with the construction of his 24-unit, industrial warehouse building which would serve small business owners well.Â
A design-build based on an understanding of the market
Genet Property Group knew exactly what their market needed, given their many years of experience owning and managing these types of units. They knew that businesses vary in size and type of business, and they also were aware of how much these smaller businesses can afford to pay in rent.
This led to a design of 24 units that are four (4) different sizes. At the smaller end, there are four (4) units with bathrooms but no offices. These units accommodate smaller businesses, such as those in the landscaping business.
Then there are sixteen (16) medium-sized units, with offices and bathrooms, for those businesses that are more customer-facing, such as auto repair.
Next, there are two (2) larger, drive-through units, with offices and bathrooms and larger overhead doors; these are located on each end of the building. And finally, there are two (2) larger units with offices and bathrooms, and the largest overhead doors. These are ideal for larger marine servicing and repair businesses, which are growing in the area, as well as larger auto repair businesses.
The relationship of owner and Danto Builders in a design-build
Ownership was hands-off during the entire construction process, a testament to the decades-long relationship between Danto Builders and Genet Property owners.
Danto Builders took full responsibility for the design-build, so the project was completed on time and within budget with an extremely competitive price. Everyday challenges and situations that arose in the field were handled internally, and minimal communication was needed, beyond the daily reports.
Additionally, the owner was extremely understanding of the market conditions, and paid for materials up-front, so they could be ordered immediately (to avoid future price escalations and change orders). Because the owners paid on a timely basis, throughout the project, subcontractors were motivated and incentivized to show up on time and finish their work.
As a total solution provider, Danto Builders was resourceful in getting approx. $200,000 of impact fees waived, given prior ownership development fees paid, in addition to taking advantage of federal tax incentives, for another estimated $150,000 in deductions.
Project challenges
Despite a relatively smooth design build process, there were project challenges. With the wide range of supply chain issues occurring in 2020 and for months afterwards, Danto Builders had to work hard with their subcontractors and suppliers to rebid the project.
The issues with the supply chain continued. Ongoing price escalations and material availability were challenges with respect to overall budget and scheduling. Despite these issues, Danto Builders was still able to build the project for under $142/sf.
A couple examples of project challenges included:
- Roof materials and the necessary hardware had extremely long lead times, and there weren’t even estimated delivery dates for some of the hardware. To address these issues, the roof design was changed to a modified bitumen roof system, which was more expensive, but ended up saving time and future cash flow.
- Meter cans had been ordered at the beginning of the project. But after frequent follow-ups with the distributor, and the delivery due date passing (a full year after ordering), the supplier advised that it would be yet another year before the product was delivered.
Danto Builders and its subcontractor reached out to other electricians and distributors, but no one had these meter cans. Danto’s subcontractor was able to locate on line other meter cans that matched the specifications needed, but they were not FPL approved. Danto Builders reached out to FPL and was able to get an expedited approval (after repeated calls and emails) for the substitute products.
Interested in a design-build? Or an industrial project in Broward County or South Florida? Contact us to discuss your goals and how to best meet them.