Privatization of modular factories may soon become a great way for many developers and non-profits to realize the benefits of modular construction for their projects. It simply means cutting out the middle man.
AIDS Healthcare Foundation (AHF) has purchased a majority stake in Crate Modular, a prefabricated housing and education center developer in Carson, California.
While Crate and Los Angeles-based AHF will continue to operate independently, Crate will produce modular housing units for AHF’s planned Skid Row Renaissance Center and will serve as a preferred vendor on future AHF low-income housing developments.
AHF’s Renaissance Center will be a 15-story low-income housing complex on Skid Row, bringing 216 affordable units to the unhoused population in Downtown L.A.
Through its Health Housing Foundation, AHF has been acquiring older buildings for renovation across California, New York, Florida, Georgia, and Texas to build affordable housing. Overall, AHF said it has brought more than 1,850 units online, with hundreds more in the pipeline.
Rich Rozycki, Crate Modular CEO, said Crate’s building methods shorten the development cycle compared to conventional site-built construction, as well as reduce waste and produce “stronger and far more durable buildings.”
Founded in 2018, Crate is a portfolio company of WindSail Capital Group, a Boston-based investment firm focused on energy innovation and sustainability. Crate has built multifamily housing and schools in the L.A. area, including a “village” of trailer homes adding 230 beds for unhoused individuals to Downtown L.A.’s Chinatown.
AHF President Michael Weinstein said Crate Modular would have “closed their doors” without AHF’s investment in the company.
“Traditional construction is too costly in time and resources to create more affordable housing quickly,” said Weinstein. “Modular construction is another solution in addition to adaptive reuse. To bring this to fruition, we worked with five other modular partners, but for various reasons, none of them worked out.”
“Crate’s approach to building shortens the development cycle compared to conventional site-built construction, reduces waste, and produces stronger and far more durable buildings. Our goal is to bring cost-efficient, high-quality, problem-free building solutions to each of our clients,” said Rich Rozycki, chief executive officer of Crate Modular. “We are grateful for AHF’s investment and partnership and are excited to help meaningfully address the need for affordable low-income housing in Los Angeles and wherever AHF and other clients may seek to fill this rapidly growing need.”
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Gary Fleisher, the Modcoach, author
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