“Business mogul Kathy Ireland has built an empire selling everything from dressers to diamonds. Now she’s got her eye on a new investment, shipping containers,” said Fox Business.
“It’s an extraordinary product. It’s economical; it’s environmentally sound. They’re safe and they’re wonderful,” Ireland said while touring a Los Angeles community center made entirely of repurposed shipping containers.
“Ireland has invested in SG Blocks, the company that modified those containers for the city’s first container-based arts and recreation center, built in record time to serve the needs of inner-city kids,” per Fox Business.
“The 24,000-square-foot facility has 46 containers which were welded together, with holes carved out for doors and windows.”
“Traditional construction is the last industry that has been disrupted with technology, so we’re building the same way we did 200 years ago,” said SG Blocks Chairman and CEO Paul Galvin.
“Modular construction is the way to disrupt traditional construction.”
The Daily Business News has reported on the developments in the container field for some years. One of the ironies is that the cost tends to be higher than a typical full-size single section manufactured home for even a significantly smaller unit. Nevertheless, the interest persists. The report below can be read later for more details.
“For millennials, they don’t want to buy the 4,000-square-foot house and have a mortgage they’re stuck with,” said Tommy Meharey, Vice President of Kathy Ireland Worldwide. “This 240-square-foot container is an option feasible in price.”
The Fox Business writer suggested that the price for a smaller container would be only 3K. “Each container costs about $3,000 apiece, an attainable option for first-time buyers who can’t afford a pricey home.” That of course is absurd, as that is the cost of a used container, not a finished unit. That kind of comment is not uncommon on emerging construction methods, and is a reflection of the lack of understanding that can crop up in any mainstream media report on housing developments. It is why a fact-checking site like this one is useful to professionals, investors, and researchers.
The SG Blocks own website suggests that they are competing against housing that would normally cost $240 per square foot, and they can achieve pricing that is about $135 per square foot.
But the Kathy Ireland move could bring more light on the trend of tech-giants, investors, and others who are considering the prefab option.
It also is a reminder to manufactured housing pros that while there is breathing room at this time, that likely won’t remain the case, unless HUD Code professionals grow the industry in a serious way to its true potential. “We Provide, You Decide.” © ## (News, analysis, and commentary.)
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