2020 NMHC Top 25 Builders

Many of the NMHC’s Top 25 Builders saw increases in the units started in 2019 compared with 2018. Summit Contracting remains at the top of the list, starting 9,065 units last year, followed by Alliance Residential, 7,603 units; Wood Partners, 5,853 units; and CBG Building Co., 5,688 units.

Katerra makes its debut at No. 5 on the list. When it comes to the future and innovation of building, Katerra, based in Menlo Park, Calif., is one of the first names that comes to mind. Launched in 2015, the modular builder is working out of factories in Tracy, Calif., Spokane, Wash., and two locations in India. However, the rise has not been without a few bumps. In 2019, the firm closed a factory and laid off employees. This year, COVID-19 has caused another 3% reduction in its workforce as the CEO went to work for free.

For some insight into how Katerra got so far, so fast, Steve Weilbach, head of U.S. construction sales, talked to MFE about the current state of affairs.

• 2020 NMHC Top 50 Owners

  No. 5 Morgan Properties rises toward the top of the owners list thanks to a large portfolio acquisition in 2019.

  

• 2020 NMHC Top 50 Managers

  No. 42 Roscoe Property Management grows its national presence.

  

• 2020 NMHC Top 25 Developers

  No. 7 The NRP Group continues to see accelerated growth, in its focus on affordable housing.

  

• 2020 NMHC Top 25 Builders

  New to the list this year, No. 5 Katerra brings technology to every part of the building process.

  

• 2020 NMHC Top 10 Syndicators

  No. 3 National Equity Fund looks toward geographic expansion.

  

MFE: To what do you attribute your company’s success and its rise in the ranks of the NMHC list?

Weilbach: The primary driver of our success and growth to date has been the support of our customers and investors who are seeking better ways to design and build. In a historically conservative industry like construction, that encouragement to take risks and find new ways to do things has been essential. Katerra was created to bring technology to every part of the building process and to find new, scalable ways to build faster, build more sustainably, and keep costs down.

Since launching in the U.S. in 2015, we have grown into a global company with over $4 billion of projects underway. Much of the growth has been enabled by the best in class architecture, engineering, and general contracting firms that have joined us along the way. They share Katerra’s vision and have added incredible talent and capabilities to our team.

Specifically in the multifamily space in the U.S., we are grateful to our launch customer, The Wolff Co. We took on our first project for them in 2016, a 368-unit project called Platinum Vista in Southern California, and we continue to work on a large pipeline of projects for them, which will amount to nearly 4,000 units through 2022.

Today, we are a highly diversified company with multiple lines of business—new construction, renovations, materials—that serve all types of customers ranging from large national to local developers, and we are continuing to grow.

MFE: The COVID-19 virus has added an unforeseen roadblock to everybody’s business this year. How does Katerra plan on getting through the challenge?

Weilbach: We’re focused on making sure all of our employees are safe, both those working remotely and those at our jobsites and factories. With those precautions in mind, we’ve been able to continue construction work in some states since much of what we do is residential housing and that is considered essential business. We’re pleased to stay active and continue to contribute to the creation of much-needed housing.

Katerra is also exploring ways to support the rapid construction of hospitals in India and the U.S. While we are early in discussions, we anticipate our support may range from the construction of new facilities to the renovation of existing buildings.

Like the rest of the industry, we’ve had to make adjustments to cope with the impacts of the pandemic. All in all, Katerra is on strong footing to weather these issues, and we are looking forward to getting back to full capacity as soon as we can.

MFE: How will the modular building end of the construction business be affected?

Weilbach: We believe the cost and speed benefits of prefabricated construction will be an even more attractive building method in the wake of this pandemic. When the stay-at-home orders are lifted, there will be catching up to do. Even before COVID-19, the U.S. was facing an estimated shortage of 7.4 million rental and affordable housing units. Growth in the use of off-site construction methods and capacity will be critical to increasing the housing supply.

MFE: What makes you optimistic about the future?

Weilbach: Despite recent global events, nothing in the future suggests any lessening in the demand and need for all levels of construction and related services. We’re optimistic because we think we can deliver on that need. Katerra puts modern technology to work at all levels of building design and construction to address some of the industry’s most entrenched challenges. Not only are those challenges cost and speed at the individual project level, but also affordability, sustainability, and energy efficiency at the macro level. Katerra is uniquely positioned to address these needs, and we are eager to demonstrate it.