Northmarq provides $9.8M in construction cost reduction for student housing project through NDS YieldBoost
Northmarq’s National Development Services (NDS) team led by Scott Lamontagne, through the firm’s NDS YieldBoost platform, successfully assisted a Central Texas developer in sourcing material costs for a 259-unit student housing project.
Through NDS YieldBoost, the developer saved $9.8 million and evaded a critical bottleneck in the construction project. Rising material costs and volatile supplier pricing had pushed the developer’s construction budget over the limit, threating lender feasibility and investor returns.
Without changing the design or lowering specification models, Northmarq’s NDS YieldBoost services identified the cost savings by leveraging supply chain optimization strategies. The team performed a rapid line-item review, and within a week produced a budget reduction plan utilizing factory-direct sourcing.
“This is a fantastic outcome for our client. These substantial savings not only bolsters their investor returns, but allowed the finance-ability of the project,” Lamontagne said. “In today’s challenging development environment, thinking outside the box is a requirement which is why Northmarq developed the NDS YieldBoost program!”
NDS YieldBoost is a strategic solution designed to increase project returns by unlocking savings in the developer’s construction budget. NDS YieldBoost aligns global manufacturing and logistical expertise with development goals to drive smarter and more profitable outcomes.
For this 259-unit student housing project, the developer benefited from a 6.25% total construction cost reduction. Impacted areas included drywall and metal studs, HVAC, electrical, plumbing, amenity center reductions, doors, wall tile, paint, site work and maintenance, cabinets, LTV flooring, unit trim and millwork, countertops, toilet accessories and appliances.
As a result, the budget was restored to viability, lender confidence was regained and the project proceeded to construction.
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Northmarq is one of the largest privately held commercial real estate firms in the United States, combining a nationwide presence with deep local expertise. With more than 50 offices across the country, we provide a full suite of debt, equity, investment sales, loan servicing and fund management solutions for a comprehensive range of property types. Our unique structure allows us to connect clients with the best opportunities, yet be nimble enough to ensure access to every expert across our company. The firm manages a loan servicing portfolio of over $80 billion and has completed $91.3 billion in transactions over the past fours years. At Northmarq, collaboration fuels results, helping clients achieve success in every market, nationwide.
