Sherman provided construction services for The Waters at Magnolia Bay, one of the largest workforce multi-family housing projects in South Carolina. Located southeast of Summerville, SC, the Waters at Magnolia Bay is a 300-unit, 13-building development on 14 acres offering one-, two- and three-bedroom, garden-style apartments. Property amenities include a clubhouse, swimming pool, fitness facility, laundry center, playground and dog park. The project when it was completed and fully occupied, in effect, doubled the population of the local town of Lincolnville, SC. The client was Atlantic Housing Foundation of Dallas, Texas, a national developer of affordable housing. The apartment home community was developed by Atlantic to help alleviate the extreme shortage of workforce multi-family housing in the Charleston Market. This was particularly the case in suburban growth areas close to the new Volvo auto assembly plant in Ridgeville, SC. Eighty percent of the apartment homes offered in The Waters at Magnolia Bay were rent and income restricted through the Low Income Housing Tax Credit (LIHTC) program.
PROJECT HIGHLIGHTS: Despite facing an initial $400K budget inflation challenge, hurricane related delays and site development issues discovered as the project progressed, Sherman was able to complete the Waters at Magnolia Bay on schedule and under budget. This was achieved through expert value engineering, code review due diligence, and skillful CM problem solving and resource leveraging. The greatest challenge to overcome was the project budget itself. It had been estimated prior to our involvement or input as to the accuracy of projected costs. What’s more, due to a 9-month project start delay, there was a $400k inflation of pricing challenge to overcome. One way we addressed this was through value engineering. This solution involved changing the exterior material of the buildings from brick veneer to vinyl siding –and saved the project. Another significant way we were able to cut project expenses was through our choice of soil stabilization. We determined that the soil base at Magnolia Place was structurally unstable for building or road construction. Rather than choosing a more costly remove and replace approach, our solution involved a soil stabilization process that augmented the existing soil with a layer of cement and lime, ultimately saving the client $200k.
The greatest cost savings on the project actually came through cost prevention, the result of Sherman’s practice of project due diligence in reviewing code requirements and restrictions. At Sherman, we conduct a code review of the design at every phase of the construction process. Because of a thorough and systematic review of the codes of the design at Magnolia Bay, we were able to save the client $600K by avoiding unnecessary construction expenses.
Sherman’s work at Magnolia Bay was on budget and finished on schedule –beginning in January 2016 and ending June 2017. This was accomplished in spite of delays to the construction flow caused by the soil stabilization process and atypical extreme weather related conditions, such as the evacuations, limited workforce and power outages resulting from Hurricane Matthew.