April Contracts: N.C., S.C., Down Again

Compared to the same period of a year ago, the value of new contracts signed in April for future construction fell by 17% in North Carolina and by 32% in South Carolina, according to the latest information from McGraw-Hill Construction, publisher of Southeast Construction.

In North Carolina, the value of new starts in April totaled nearly $1.7 billion. The residential sector fell 30% for the month to total about $953.3 million. On the positive side, nonresidential contracts increased by 14% to tally $551 million. The value of nonbuilding starts also improved, finishing the month at an estimated $143.2 million, for a 9% uptick.

For the year-to-date, North Carolina is 10% behind last year’s pace. The residential sector is 32% behind last year, and totals roughly $3.7 billion in new starts so far. The nonresidential market is 9% behind the ’07 pace, with about $2.1 billion in new starts. The nonbuilding segment’s nearly $2 billion total to date is more than double last year’s pace.

In South Carolina, April contracts fell by 32% overall, compared to the same period of a year ago, for a $625.7 million total. That compares to last April’s total of $918.1 million.

For the month, the nonresidential sector fell 61% from the previous April for a $96.9 million total. Residential dropped by 21% for a $480.2 million total. The value of nonbuilding starts declined by 19% for a total of about $48.6 million.

For the year-to-date, the value of new starts in South Carolina is 32% lower than ‘07’s pace. Residential is 28% below last year, and totals roughly $1.8 billion. Nonresidential is 38% off the pace of a year ago, with a $675.6 million tally so far. The nonbuilding segment, which includes streets and highways, bridges and other infrastructure, is 36% behind last years’ pace and totals $316.7 million.

SSOE to Design BMW Plant Expansion

SSOE, an architecture and engineering firm with offices in Raleigh, N.C.,, announced it will be providing design services for BMW’s new 1.2 million-sq-ft assembly plant. SSOE will provide the detail architectural and all civil, structural, mechanical, electrical and fire protection engineering services.

In a recent announcement, BMW confirmed the expansion of its North Assembly Building in Spartanburg, S.C., keeping in line with company plans to increase production capacity at its US operation from 160,000 to 240,000 automobiles annually by 2012. This expansion will allow BMW to increase its output and add 500 new jobs.

Kohlbecker Architects and Engineers, from Gaggenau, Germany, has been contracted by BMW and partnered with SSOE.

The final assembly plant will be built on BMW’s existing site. Construction began in April and should be completed next July, with production of the next-generation X3 Sports Activity Vehicle beginning in 2010. The building is being designed to meet the EPACT 2005 standards for “Energy Efficient Commercial Buildings”. This includes increases in insulation in the walls and roof, efficient lighting systems (metal halide lights with dual level controls), high efficiency heating and cooling systems, and high efficiency hot water systems.

Blue Cross Blue Shield Gets on Green Bandwagon.

Blue Cross and Blue Shield of North Carolina recently broke ground in Durham, N.C., on a green building that was designed to use 65% less energy and half the water per square foot of the company’s traditional office space. The five-story building will include a six-level parking deck.

“With this new building, we're making environmental stewardship a central business practice,” Bob Greczyn, company president and CEO, said in a press statement.

The building will house about 550 BCBSNC employees and will consolidate some business units that are now in separate buildings.

The 100,000-sq-ft building - expected to be completed by next summer - is the centerpiece of a long-term effort to reduce the company's environmental impact. BCBSNC has set corporate-wide goals to reduce its overall energy consumption by 25% and its water consumption by 20% by the end of 2010.

Crosland Starts 500 West Trade

Charlotte-based real-estate firm Crosland announced its development of 500 West Trade, a luxury apartment building in uptown Charlotte. Crosland indicated the project’s cost as approximately $100 million. It will provide for-rent housing with amenities and finishes on par with the numerous newly built condominiums in the city’s urban core.

Crosland, and its joint venture partner, Trinity Capital Advisors, originally envisioned two phased high-rise buildings, but plans shifted to a single, eight-story, 400-unit building. The company plans to start construction this fall. Residences are expected to be available for move-in by late 2009. The development will also feature retail shops.

Residences will be available in one-, two- and three-bedroom configurations, ranging from 600 to 1,300 sq ft. The building architect is The Housing Studio.

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