Construction In Focus: Going GREEN with MODUS Development
Being at the forefront of environmentally aware construction combined with modern, stylish residential design is what MODUS Development has taken pride in since its inception in 2008, focusing on sustainability and Net Zero Energy (NZE) which appeals to both clients and investors alike.
With a host of awards to its name, MODUS continues to break the mold when it comes to continually stretching the boundaries of new and innovative design while embracing both technology and eco-friendly awareness for each new project.
Based in Phoenix, Arizona, MODUS stakes its well-earned reputation on crafting green buildings at a comparable cost to regular ones, while featuring sleek and stylish designs not always associated with eco-friendly dwellings.
This promise, of something different and unique, can be found right in its name: Modern (MOD), Urban (U), and Smart (S).
“My major was Computer Science and Technology in college, and then I went into real estate, so I’ve basically brought my two careers together,” says President Ed Gorman. “It makes us uniquely qualified to do this, because too many people in home building are intimidated by technology, don’t make a lot of Innovative moves, and are doing it the way it’s always been done. We feel comfortable innovating and try to push the envelope in everything we do. Everything we’ve done is for a better design and we’re constantly looking to improve.”
Innovation and improvement are high on MODUS’ long list of achievements, along with national recognition as one of the top developers of Leadership in Energy and Environmental Design (LEED), and Net Zero Energy (NZE) buildings.
“We’re really proud of our industry first accomplishments,” Gorman says. “We’ve since gone on to be a leader in LEED, having the first Net Zero Energy multi-family project in the state, and the first 100 percent Net Zero apartment in the whole country. We’ve really carved out a niche in that we’ve focused on technology as one of our pillars of success.”
Embracing the latest technology and always seeking opportunities for progress, improvement and expansion has set MODUS apart from competitors, who are often impeded by their inability to change with the times and with clients’ demands. MODUS also focuses on locations with proven income and job growth in prime development areas to further ensure ongoing success.
“It’s about great locations, great design and leveraging technology,” says Gorman. “Technology enhances your lifestyle, but most people can’t see that so easily as automation in door locks, thermostats and lighting controls, for example. We also look at technology as science, which is materials such as spray foam insulation, LED lighting, and high-performance glass that all come together, reducing the overall demand for energy. This allows our projects to utilize solar panels to cost effectively achieve Net Zero Energy.”
MODUS is using this technology and its experience to make it economically feasible to produce Net Zero Energy homes, with more than 200-unit communities around Arizona. MODUS plans to expand into Colorado, Texas and California – while all new homes are required to be Net Zero – a challenge MODUS is up to tackling.
“The key to success is being open about technology, doing things differently and not being afraid. At the same time it’s about surrounding yourself with a great team and taking things on like building science technology.”
Gorman’s team remains open to new suggestions, whether from engineers or from vendors selling heating and cooling equipment. For Gorman, though, he pushes the importance of education above all.
“It’s about great locations, great design and leveraging technology.”
“If a builder isn’t willing to learn and continue educating themselves in the latest technology, then they’re going to be doing it the same way they’ve always done it,” he says. “We differentiate ourselves by creating a brand that people recognize as a leader in style and innovation, and being focused on quality too. We’re always trying to build the best product we can, first, to frustrate that consumers recognize that.”
And, of course, the environment is always at the forefront of MODUS’ sustainability. “That’s what we do. We’re pretty much a national leader in providing Net Zero Energy and Energy Star homes,” he says. “It’s important and it needs to be done, but what I’ve discovered over the last 15 years is nobody wants to spend more money or compromise lifestyle for sustainability, nor do they want to sacrifice comfort or lifestyle.”
Gorman knows MODUS’ buildings can’t compromise on aesthetics, either, and should actually enhance clients’ lifestyles rather than detract from it. “When I meet and talk with people, everybody thinks ‘green’ means very expensive. It’s about great locations, great design and leveraging technology. Technology enhances your lifestyle, but most people can’t see that so easily.”
MODUS buildings look as good as or better than anything available, he says, and yet they perform more efficiently, with owners and renters saving at least 50 percent on electric bills. “So many people can’t fathom how you can give them energy savings and still be stylish,” Gorman says. “I’m a frequent guest lecturer at schools and organizations, because a lot of giving back is providing education. If people don’t know, they can’t proceed, but if we can help educate people to do it, that’s how we make a major change. A bigger difference than what we can provide.”
MODUS has faced its share of obstacles, however, with the recession forcing the company to step back and reconsider its goals. The team decided that great locations, great design, and leveraging technology was the way to go – but more importantly, doing it in a way that didn’t cost more. Future plans include scaling the business up to thousands of homes and being in contact to the masses so more people can experience the specialized benefits of the company’s approach.
Gorman mentions MZ and MZ2 as two examples of NZE projects that exhibit style and luxury – both boast porcelain tile floors and quartz countertops – something clients often don’t associate with energy savings; however, they are materials that actually save a lot of money. Gorman is proud that its projects have won awards for both style and technology, a combination not often achieved. Consumers that see a finished product that’s attractive to the eye, yet catches the eye, are those interested in sustainability and yet technology, a combination that’s not easy feat.
Gorman credits MODUS’ team of experts as vital to its ongoing success. “Our innovation and subsequent acceptance have been a big deal,” he says. “Our small size enables us to make changes quickly, as opposed to large companies. We work with what turns the consumer on, because at the end of the day it’s the consumer that’s buying, not the builder,” he says. “And these days, consumers are sophisticated and don’t want to compromise, so why should you? And now people expect more, and we can give it to them.”
And innovation is what sets the company apart, as it comes up with new, different and fresh in all areas of development without having to charge exorbitant prices.
“You get bored doing the same thing over and over,” Gorman says. “The legacy homebuilders are about producing homes that save money that’s even better. Over the last decade through experimentation, innovation and research, we’ve built NZE buildings at the same cost of a normal building, and that’s what sets us apart because now you don’t have to charge the consumer more for the benefit.”
One of MODUS’ biggest challenges is finding suitable land in great locations, because the market is so hot right now, and prices are pushing up to a level that doesn’t often make economic sense for anyone to build on. It’s a challenge the company is navigating with creative financing options, new ventures, and building in new markets. In addition, as the market has improved and as MODUS has proven its track record for profitability by building performance homes, capital sources have expanded greatly.
People are catching on, but as Gorman reiterates, education remains an ongoing daily challenge. And while consumers are far more in tune today than they were 15 years ago and education has become much greater, MODUS still works hard to help consumers understand that everything that goes into crafting a green development that is sustainable now and into the future.
“We get people’s attention by focusing on the economics of it. People can save money by saving energy on their electric bill every month, because it’s the bill that all renters and owners pay,” Gorman represents the importance of what they’re saving. “When you have a more energy-efficient product, you’re saving money by using less energy, but you’re also doing a good thing for yourself by saving money.”
So it’s killing two birds with one stone, in a way, by creating sustainable housing options that also don’t cost more to live in, Gorman says. Time and Gorman plans to keep on both and doing both well.
“We all have the same 24 hours in a day or 40 hours in a business week,” he says. “If you can do something relevant and make money doing that, then why not?”