Commercial

oday’s green building industry is big business. Green and sustainable construction has evolved considerably since the movement began more than 20 years ago.Health advocates, communities and the market continue to drive new development in sustainable construction, which aims to use energy and water in an efficient manner, protect the health of occupants and minimize waste, pollution and environmental degradation. Advancements in technology, client and market demands for sustainable and energy efficient designs have resulted in a rise of the development and adoption of regulations and initiatives supporting the ideals of sustainable construction.A close look at the spending of this segment of the industry reveals its growth. Analysts expect sustainable construction spending to reach $224.4 billion in 2018, an increase of about $75 billion in just the past three years alone.

According to one research study, the U.S. market for green building materials is expected to add up to $69 billion in spending by 2019, an increase of $26 billion spent in 2014.

What exactly are green building materials? These are components made from renewable resources, are recyclable at the end of their life and are manufactured using environmentally friendly processes. Generally they are made from materials that are salvaged, recycled or waste content.

Healthy buildings: a trend that is here to stay

The construction of healthy buildings is gaining ground as owners and developers are realizing the benefits of healthy buildings, in particular an increase of natural light and better air quality.

Increasingly, more companies are demanding healthy buildings for their employees as studies show a direct relationship between worker productivity and air quality. The elimination of volatile organic compounds, VOCs, found in building products such as paints, carpeting and furniture, reduces side effects such as irritation of the eyes and lungs – and even potential long-term damage to the human body.

New guidelines are making a difference in how environments are built, too. For example, the WELL Building Standard launched in 2014, enhance the health and well-being of occupants by measuring, certifying and monitoring seven areas: air, water, nourishment, light, fitness, comfort and mind.

In addition, expect the Big Data revolution to impact green construction as data scientists make it easier for owners and the builders to compare the hazards of products and materials.

Other trends: Renewable Energy and Net Zero Energy

Solar, wind and geothermal energy continue their momentum as sustainable alternatives to traditional power sources. Solar panels are being integrated into everything from roof shingles to building facades and road pavers. Changes in the tax law could affect this industry, however.

Net zero energy buildings create as much renewable energy as the building consumes in a year. Those standards are important because residential and commercial buildings account for nearly 40 percent of U.S. energy consumption, according to the U.S. Energy Information Administration.

California is making strides in this area. The California Public Utility Commission has set “net zero” energy goals for all new residential construction by 2020 and commercial buildings by 2030. Although the net zero goals might be unrealistic for high-energy builders many schools and warehouses are pioneering this segment of construction.

Murfey Company is committed to environmentally responsible and resource efficient construction in its commercial and residential projects from start to finish. Murfey Company is Leadership in Energy and Environmental Design (LEED) certified by the U.S. Green Building Council. The LEED program provides rating systems for the design, construction, operation, and maintenance of green buildings. If you are interested in learning more about our construction and real estate development projects, please visit www.collinsbuild.wpengine.com.

This article originally appeared in the La Jolla Light

As neighborhoods evolve and urban infill projects alter the landscape and the dynamic of an area, older or struggling areas can be revitalized. New spaces allow for creative interpretation of the ways in which residential and commercial properties can be utilized and even combined. Pop-up shops allow for fledgling businesses to build their reputation with minimal overhead. However, what does all this change mean for older, more established brick-and-mortar businesses?

Unfortunately, many times when a neighborhood undergoes a drastic change, local businesses—even those established for many years—are at risk of displacement. Additionally, some commercially zoned properties are owned by developers, not business owners, and some cities use economic tools to maximize business growth instead of focusing on business sustainability. While this is most significant for those who rent as opposed to own their spaces, new options and changing demographics can cut into even well-established, seemingly secure businesses that also have the deed to the building.

If you own a business and can look back to a not-so-distant heyday, analyze what opportunities an evolving community can bring, and determine how you can address and meet the changing needs of your community. Times of transition might be ideal for a full structural remodel, especially if your space sticks out as the tired-looking property on the block.

If you are a local success story, maybe you want to consider some cosmetic retouches, especially if your business contributes to the local charm and neighborhood character. Old, rustic, and vintage do not mean run down.

But before you break out the sledgehammers, be sure to do your research and consult with a trustworthy contractor who has worked with commercial remodels. Commercial remodels can be costly, especially if you are remodeling a significant portion of your property. If you have to shut down business during construction, have a business strategy set, and be sure to consult with your builders to develop a specific and realistic timeline. You also want to be sure your business plan fits in with the community needs. This will also help determine how much of an investment you make into your remodel. Many businesses have suffered by spending too much on a cosmetic remodel, only to see the business fold within a year of completion. Some of this comes from hoping that an underperforming store or restaurant will be miraculously changed with a cosmetic update.

Maybe you only need a repaint, or new windows, or an updated storefront or sign. If you have a restroom available for customers, do you have the type of facilities your customers avoid at all costs? If you own a restaurant, does your kitchen have an outdated hood and vent that causes everyone to leave smelling of grease and fry oil? Even smaller changes can incentivize customers to return, stay longer, and spend more money at your business. Maybe you notice that your layout is underperforming and that you need to reimagine and better utilize the space for your customers.

It is also possible that your community’s revitalization causes you to revisit your business itself. If you are looking to rebrand, an update to your property’s structure sends a sign to the community that you are doing something new and fresh.

Local businesses can be the backbone of the community. Even a small remodel can show your dedication to clients and the community as a whole. Consider whether you want your space to also serve as a meeting space for civic events, or if you simply want to foster an inviting community feel in your space.

At Murfey Company, we are experienced at commercial remodels and builds of all sizes, as well as investment opportunities for larger development projects, including mixed-use and urban infill properties. For more information on our full range of construction and development offerings, visit us at collinsbuild.wpengine.com.

This originally appeared in The La Jolla Light

This article originally appeared in the La Jolla Light

Urban development is rethinking not only housing but the entire way we live. With a focus on making urban centers actual centers of residents’ lives, not only is the city center becoming a great place to live, it’s becoming the ideal spot to set up business.

However, urban redevelopment isn’t some revolutionary mode of thinking; in fact, it’s more like going back—way back—to ancient Greece. Apple has talked about their stores as being like “agoras,” the gathering places of 2,000 years ago, the centers in which people came together near where they lived. They shopped, they exchanged stories, and they learned the latest local gossip as well as information on what was going on with the state. And that is what urban redevelopment aims to do in this massive transformation back to becoming a pivotal neighborhood center.

With mixed-use housing, people can work where they live and live where they work, reducing commute, potentially even the need for a car. They can avoid the frustration of getting home only to recall the forgotten item on the grocery list. In mixed-use housing, the basic needs are a flight of stairs or an elevator ride away.

These new urban agoras build on a sense of community loyalty, something a lot of power players in retail have been aware of in the last few years. With online retail cutting into much of the brick-and-mortar business, causing an epidemic of shuttered windows throughout cities, and coupled with soaring rents, much of the prevailing mode of business that we knew up to the 1990s is likely over.

But this isn’t necessarily the case in places with urban renewal. Businesses getting in on the ground floor, literally and metaphorically, have great opportunities to get high returns on their investment. And with this new focus on the “agora” lifestyle, retailers are focusing on the store experience and the services that can be provided in person, rather than focusing on product-pushing alone.

We see evidence of this in the many pop-up shops and spaces for local artisans as well as other maker spaces that are drawing a trusted local following. These really are cities of the streets, highlighting the social exchange via walkability.

What is the fate of the urban center? Can it grow out of control?

This is where local investment comes in. There are several ways that urban redevelopment and retail will trend, and what businesses go in and the people who support these neighborhood spaces will determine which trend takes hold.

  • Mutable Markets—these are the temporary shops, the pop-ups, which serve to create a following and then move on to the next location, where hopefully word-of-mouth will precede their arrival. These shops may become the business norm, especially in the face of exorbitant rents.
  • High-end Gentrification—this is the upscaled model, in which high-end retailers start to offer increasingly personalized retail experiences. These are often stores that promote lifestyle brands, the kind that look good on Instagram accounts and YouTube celebrity pages. They can operate at a loss, while using predictive algorithms to create increasingly individualized experiences. The risk of this is that gentrification will lead to even higher rents and rapidly change the dynamic of a neighborhood, which can benefit some groups but certainly not a majority. This is less “agora” and more private club.
  • Community Commons—this focuses around the coffeehouse-as-living space, the office café, and people working independently and based on a digital economy taking advantage of potential tax penalties for street-level vacancies, which would allow for leasing of ground-floor retail space to common areas. This also includes community organizations as well as health centers for seniors or day care centers for children. These common areas would be determined by the needs of the community; however, they don’t always pose inviting street fronts if they don’t cater to the entire community.
  • Indie Guilds—this is the “buy local” movement, the low-cost start up entrepreneurial opportunity made up of small, independently owned and operated craft businesses that benefit from lower rents and loyal followings. The guild comes from a share of infrastructure, smaller businesses banding together, sharing equipment costs and rent as well as space. Imagine if Etsy were brick-and-mortar, and you’ll get the idea of the Indie Guild.

What all these opportunities suggest is the importance of a community-involved urban redevelopment plan, including local investors who know and understand the community’s needs. Mixed-use urban development isn’t going away, but in an age of increasing bubble isolation, these gathering places are a means for people to reconnect on the neighborhood level while providing ease of access and improved quality of life.

Next month, we’ll take a look at how the use of technology is revolutionizing construction projects, including urban infill and mixed-use development projects.

At Murfey Company, we’re dedicated to whole community improvement and will work with you on your investment into urban development with an eye toward community sustainability. For more information, visit us at www.collinsbuild.wpengine.com.

This article originally appeared in the La Jolla Light

Last month, we talked about our excitement over our real estate development and investment division, and the possibilities it opens up for creating new, unique properties and use of space in San Diego. But we know that there are some stigmas that the phrases “mixed-use” and “higher-density” evoke. Fortunately, studies have already been conducted between various organizations that represent builders and developers in conjunction with environmental organizations such as the Sierra Club, and they have found some good news to help assuage those concerns. Let’s break down some of the big myths behind mixed-use and higher-density development.

Myth 1: Mixed-use housing means more people aren’t paying property taxes to support infrastructure

The truth? Sure, renters don’t pay property tax, at least not directly. But the apartment owners do, as part of their commercial real estate taxes. So the money is going into the city’s infrastructure. What’s more is that with an increase in urban density, less infrastructure is needed. The bigger problem is urban sprawl, which requires more infrastructure to support with new roads and expanded services (such as police and fire, for example).

Myth 2: Higher-density development puts a strain on public services, especially public schools

The truth? The majority of families with children still occupy single-family homes. One study found that single-family developments average 64 children for every 100 units, but only 21 children per 100 units in garden apartments, and an even lower 19-100 living in mid- and high-rise apartments. So who is living in mixed-use development? Young people, childless couples, and empty nesters make up most of the residents. In fact, Baby Boomers are relocating in droves to urban centers to lessen commutes and enjoy city living.

Myth 3: But higher-density and mixed-use housing has to create more traffic and parking congestion

The truth? Actually, the opposite is true. Higher-density development breeds much less congestion. Especially now, when walking, biking, and public transportation resources are experiencing a boom, and even shared parking options are helping to prove that this myth is falser than a Lannister oath.

Myth 4: Higher-density developments lower the property values of the surrounding areas

The truth? According to extensive research, there is no real difference in rates of appreciation for properties located near higher-density development versus ones that aren’t.

Myth 5: Higher-density, mixed-use development is only for lower income households

The truth? A recent study showed that 41% of renters say they rent by choice and not out of necessity. And over the last decade, as urban centers are flourishing with new venues of culture and entertainment, people of every income group want a piece of that exciting and enriching lifestyle. In fact, the for the Baby Boomers flocking to urban centers, 90% of them say a big enticement is greater access to cultural experiences.

Myth 5: Higher density means higher crime

The truth? Again, the data doesn’t pan out. There is no significant difference in the crime rates of higher- and lower-density developments.

Myth 6: You can’t “Go Green” when you go higher-density

The truth? Lower-density development actually increases water and air pollution, and urban sprawl is more taxing on natural resources. Most low-density land is used inefficiently, which contributes to the loss of open space and farmland. And developing in urban areas where the infrastructure already exists requires fewer resources.

Myth 7: Higher density means a population explosion

The truth? Not necessarily. In fact, higher-density development really just means developing properties that have an increase in units over what currently exists, not that the Burj Khalifa is going in next door. Every neighborhood will have different needs, and cities will grow as population densities shift. But that doesn’t mean that you should expect to walk out your door and into the world of Blade Runner.

We believe that urban development has to happen responsibly, always keeping in mind the true heart of the community. That’s why the best investments in urban development come from within the community.

Next month, we’ll give you an inside look on the latest exciting possibilities of mixed-use, higher-density development and help you see what you get when you set up shop in an urban center. For more information on our recent multi-use developments, or to explore more of what we have to offer at Murfey Company, visit us at www.collinsbuild.wpengine.com.

 

This article originally appeared in The La Jolla Light

At Murfey Company, we have been dedicated to the improvement of San Diego through innovative design and quality construction, and we believe in making a lasting investment in our communities. This is why we have launched several new divisions within Murfey Company, vertically integrated to include not just construction but also site acquisition, software development, as well as our real estate development and investments division called Veritas Urban Properties, where we specialize in urban infill projects and mixed-use housing.

While we’ve previously discussed adaptive reuse, we are now looking forward to the exciting prospects available for the revitalization of many of the downtown areas of San Diego.

Some people may be confused about the nature of mixed-use housing, what it entails, and how it can change the complexion of a city. But urban centers have long incorporated structures that contain both living spaces and commercial spaces on the street level. One benefit of this is to diminish heavy traffic by including amenities that are accessible without having to drive (and search for parking).

Mixed-use developments are designed to enhance the neighborhoods where they’re being built. An added benefit of a mixed-use development is that it tightens community bonds, giving hubs where people can come together, so that residents feel even more invested in their neighborhood. This is especially important in areas that have been either neglected or are just beginning their transitions—mixed-use development by committed investors gives an added boost to these transitioning communities.

But there is a very real and practical reason to build mixed-use developments: there just isn’t space anymore in San Diego, or in many other urban centers, to “sprawl.” While most of San Diego has been traditionally suburban, there isn’t enough raw land left to add on to those suburbs.

And it’s not only the amount of land left that affects the increase in urban infill projects. The lifestyles that were fairly static from after World War II through the early 2000s has undergone a drastic shift. People are increasingly looking for property near urban centers. Empty nesters are looking to downsize and be near useful amenities and stores. Young people are also flocking to urban centers so they can be near work, dining and nightlife, avoiding long commutes or relying totally on public transportation. San Diego has over 40 light-rail and bus stations now, making it easier than ever to move about the urban center. And a recent census statistic shows that only 25% of American households actually have the nuclear home—two parents, kids, and a pet. Fewer people are looking for that home on an acre of property than they were before. Couple this with the fact that the US population is projected to add over 40 million residents by 2020, and the importance of investing in mixed-use structures and urban infill projects becomes clear.

Some people are hesitant to invest in these projects since the economic downturn almost ten years ago, but there is plenty of capital for even selective investors. Also, while it isn’t critical, it is still preferably when investors come from within a community—they have a vested interest in doing what’s right for their community, and they will know best what is needed to make their neighborhood flourish.

Next month, we will cover facts versus myths of mixed-use development projects, including some statistics that may surprise you. For more information on our recent multi-use developments, or to explore more of what we have to offer at Murfey Company, visit us at www.collinsbuild.wpengine.com.

This article originally appeared in the San Diego Business Journal

Developer K&K Veritas LP has obtained approximately $12.7 million in construction financing for a planned new mixed-use luxury apartment community in San Diego’s Midway district in Point Loma, according to Holliday Fenoglio Fowler LP (HFF), which arranged the financing.

An HFF statement said the 81-unit apartment property, with 3,137 square feet of retail, is called Driftwood and is planned for a two-acre lot at the corner of Kemper and Kenyon streets. The developer is an affiliate of San Diego-based Veritas Urban Properties and Bishop & Co., with construction to be completed by locally based Murfey Construction.

An HFF debt placement team, led by Aldon Cole, Bryan Clark and Chris Collins, placed a two-year construction loan with Pacific Western Bank.

The three-story Driftwood will include a communal courtyard with a hot tub, barbecues, lounge areas and 109 parking stalls. The full development cost of the project was not disclosed.

This article originally appeared in The La Jolla Light

Murfey Construction is well known in San Diego, particularly in La Jolla, for the seven-year-old company’s commercial and primarily residential building services, everything from general contracting to consulting. It’s also recognizable for its distinctive pelican logo and, of course, for that spelling of Murfey (for founders Scott and Russell Murfey).

Well, neither that name nor the pelican are going anywhere, but what Jesse Lyons, director of operations and marketing, calls a “brand expansion” will designate the parent company as Murfey Company. Divisions of Murfey Company, each offering their specific services, will have their own established brands: Murfey Construction (general contracting); Veritas Urban Properties (real estate development), BidRancher (software application development); and Murfey Management (property management). The idea, Lyons said, is “to encompass all the different activities and the brands we manage and those we hope to add.

“There are a number of things we do well. That’s the reason we wanted to create our parent company.” The other reason? To show that Murfey is a major player. “Our message is we’re a big company,” said Lyons, who came onboard at Murfey three years ago.

By any name, the company’s emphasis is on urban infill. “I think the No. 1 thing is we want to bring value to the community,” Lyons explained. “It’s really about taking a space that no one else wanted or could do anything with or which sat vacant for years, and turning it into something usable.”

One such project set for January, when ground will be broken, is the 78-unit, mixed-use Driftwood luxury apartment building in Point Loma in the Sports Arena (aka Valley View Casino Center) area on the corner of Kenyon and Kemper streets. Driftwood, Lyons said, is a perfect example of the kinds of space utilization projects that “provide valuable housing to San Diego, which is virtually starved for new apartments.”

Murfey Construction — or should we say Murfey Company? — is occupying a new residence itself, having recently relocated from Pacific Beach to the former Buffalo Breath costume store space in Old Town. Murfey today boasts 30-plus employees, with more than 40 years of combined industry experience.

In addition to the brand expansion and the development of residential properties like Driftwood in early 2017, there is plenty on the Murfey horizon. “We actually have a hotel division where we are working (on remodel projects) with some of the nation’s hotel chains,” Lyons said, “not just in California but in a couple of other states as well.”

But growing and improving communities through well-conceived projects remains at the top of the list. “We really see ourselves growing further as a trusted urban infill developer,” said Lyons. “We’re always looking for the unused pieces of dirt that are out there.”

 

— Murfey Construction, 2050 Hancock St., Suite B., San Diego (858) 459-6865. murfeyconstruction.com

 

The Business Spotlight features commercial enterprises that support La Jolla Light.

Copyright © 2016, La Jolla Light

This article originally appeared in The Californian

The nation’s second memory care facility for adults with developmental disabilities diagnosed with aging issues such as Alzheimer’s was recently completed in Spring Valley. Noah Homes is to be credited for recognizing the need and completing the project. They held a ribbon cutting and ceremony to celebrate this momentous event on Nov. 3.

In front of an estimated crowd of 100 CEO of Noah Homes, Molly Nocon, welcomed local dignitaries such as County Supervisor Dianne Jacob, Dr. Michel Rafii director of the Adult Down Syndrome Clinic and Associate Professor of Neuro Sciences at U.C.S.D., and Mary Ball president and C.E.O. of the Alzheimer’s Association of San Diego/ Imperial County among many others.

“Almost all people with Down Syndrome will develop Alzheimer’s as they live into their 60’s – starting as early as their 40’s – and yet there are no homes specialized for their needs” said Nocon. Noah Homes addressed that need.

According to the National Down Syndrome Society one in every 691 babies are born with Down syndrome in the U.S. every year and there are approximately 400,000 people living with Down syndrome.

Nocon credited Dr. Michael Raffi with getting the ball rolling on the whole project but noted that local government, Noah Homes’ board of directors, and major donors like Peter Farrantelli and Kim Lauridsen were the force behind the project as well.

The two homes, named Casa de Amor and Casa de Lauridsen, are each 5,000 sq. ft. and will open in early 2017 and house 20 residents with 10 beds per house. All A.D.A. compliant with smart intel.

According to the National Down Syndrome Society one in every 691 babies born in the U.S. every year have Down syndrome and there are approximately 400,000 people living with Down syndrome in the U.S.

According to Noah Homes the estimated total cost is $6.7 million and is less than $1 million from being completely funded. A GoFundMe account has been set up to help raise additional funds at http://www.gofundme.com/NoahHomes.

“If they don’t die of something else they will develop Alzheimer’s,” doctors told Carol Dalseth, resident Mary Dalseth’s mother. Dalseth continued, “It means so much to us to not worry about her now.”

“You have to hand it to Noah Homes and Molly (Nocon) to promote and have the energy to complete the project” said Russ Murfey of Murfey Construction, “We see many projects that don’t have full support.” Murfey Construction paired with Noah Homes around two years ago on the project. 

A blessing was given before the ceremony with the main message of “We ask that you bless these memory care homes – a place of care, love and compassion.”