How to be Your Own Developer
In December 2004, Metropolis magazine ran a cover story entitled “How to be Your Own Developer” written by Brian Libby. In the article, Libby interviewed five young architects who have dipped their toe development and outlined six lessons on how to skip the middleman and build your own projects. {Download the article here}
Lesson One:
It’s never too early to start, or don’t be afraid to empty your own dumpster.
In Lesson One, Libby talks to Kevin Cavenaugh of Guerrilla Development. Frustrated by the professional practice of architecture, Cavenaugh got the final nudge from his own wife, “She said to me, ‘How much harder is it for you to do what your clients do? You should just hire yourself.’” After taking some of the developers he had worked as an architect for to lunch, he began to figure out development. He took out a construction loan and developed his first project as a mixed-use building with retail below and housing above, The Box + One. The budget was tight and Cavenaugh had to be critical of his contractor’s budget. When he saw an $8,000 line item for removing debris from the construction site, he told the contractor that he would do it himself. “So I had an old beat-up Chevy truck, and every Friday I’d cruise over and fill it up with all the debris.”
Lesson Two:
Modern design sells – Just don’t go crazy
In Lesson Two, Libby talks to Chad Oppenheim about his Ten Museum Park project in Miami, FL. He designed a clean and modern condo tower in what was at the time an undesirable and run-down neighborhood. Oppenheim explains how exploiting a modern design helped his sell what other developers were unable to. “You try to operate on the furthest edge of the spectrum, where design is pushed as far as it can be without jeopardizing profit. And it’s proven true repeatedly that the extra design time and consideration for creating beautiful lifestyles pays off.” Libby warns readers of the difficulties of pushing the boundaries of modern design in a world where realtors have a preconceived notion of what sells and a hesitancy to try something new. Nilus de Matran was developing two live-work units in San Francisco, CA. The realtors were afraid that the crisp white interiors and exteriors were too progressive for buyers and pushed to paint the interiors wild colors and stage the project with gaudy furniture. De Matran fought to preserve the clean and was awarded handsomely when the buyers finally came around. Be cautious of those trying to earn a quick buck compromising your passion.
Lesson Three:
Know Thy Materials
In Lesson Three, Libby talks to Jonathan Segal who designs, develops, and builds projects in San Diego, CA. “I can quote you anything about a building’s cost. And I think most architect wouldn’t know half of that.” Segal is positioned to understand the value of design and how to choose materials based on a cost to value ratio. Segal also talks about the added efficiency of being the designer, developer, and contractor. When talking about a past project before he took over the entire process, “There were three five-inch-thick binders full of requests for information on the drawings. Now, doing my own projects, I’m on the site, and if someone says, ‘What do I do here?’ I say, ‘Do this and this,’ and we move on. It’s not three days of going back and forth.”
Lesson Four:
No hable Archispeak
In Lesson Four, Libby talks to Gregg Pasquarelli of New York-based SHoP Architects. Pasquarelli and his partners were interested in developing a project during the late 1990’s in the Meatpacking District of Manhattan. This was before the hipsters when hookers and blow filled the streets. SHoP knew that the only way to capitalize on their design efforts was by risking their own money. They joined forces with a local developer, Jeffrey Brown, who helped SHoP navigate their way into the development game for their first project, the Porter House. Pasquarelli quickly realized the amount of work required in effectively communicating why investors should buy into the Porter House. “Most bankers are not in the business they’re in because of their visionary or creative abilities. It takes extra effort to get people to understand what you’re trying to do when it’s not cookie-cutter.”
Architects have a long history of speaking their own unique language, Archispeak. The buzz words typically used to woo clients or professors in architecture school do little to investors who are interested in returns and mitigating risk. “You have to spend a lot of time explaining what you’re trying to do, especially if it’s unconventional,” adds Pasquarelli. “You have to be able to communicate in ways that are not elitist and explain the complexities of a project and what a difference design can mean in resolving them.”
Lesson Five:
Real estate for dummies
In Lesson Five, Libby talks about the need to understand the real estate environment. The architect-developers that Libby interviewed were not only creating beautiful and inspiring pieces of architecture, they were creating a profit, and a good one at that. They were only able to do that by identifying the community they were building in and what was appropriate. These architect-developers had to understand the macro and microeconomic trends of real estate. They needed to identify what kind of architecture was needed for their city, neighborhood, and block. They also needed to understand risk. Architect-developer Jonathan Segal discussed his own perception of risk with Libby. “People tell me it’s too scary to develop your own projects. And I say, ‘What you’re doing is scarier to me. You’re running a business. You’ve got a bunch of employees to worry about, clients calling you seven days a week. I think it’s easier to do what I do.’”
Lesson six:
You’ll be a better architect
Lesson Six, Libby argues that by having skin in the game, architect-developers are able to create better architecture. They are better at assessing the value of good design and able to experiment in creative ways. It is because they are critical of themselves that they can make the most effective use of their architectural abilities. Pasquarelli learned a lot from developing the Porter House. “We were our toughest clients we’ve ever had. You’re really critical with yourself that everything you’re doing is the best use of limited funds. But that’s really when the value of architecture becomes interesting. You’re able to forecast and model the relationships between zoning, design, and financial return and have that as a kind of fluid dynamic equation that you can be completely conversant with at both ends of the spectrum. You can solve problems with good design.”