For decades, the real estate community has perceived architects as “artistic” types who design well but can’t crunch the numbers. This stereotype has become somewhat rooted in reality because of the flawed education system lacking in business instruction. Thankfully, over the last decade, there have been studios and individuals who proved that the transition in real estate development from working strictly in design to having more creative and business control is a viable option. Compared to other archipreneurial business models, architects pursuing real estate development is one the riskiest endeavours because of the cut-throat nature of the industry and the difficulty of getting a in the door. Nevertheless, it is possibly the most rewarding path.

Even should you feel that you lack business skills, background in architecture can give a competitive edge because you understand the process of building. For instance, many project managers in smaller architecture firms perform various roles such as recognizing potential locations that real estate developers might miss and spending a lot of time honing presentation skills. Additionally, over time, most working architects gain experience in specific typologies or areas in the AEC industry. This familiarity coupled with the ability to gradually add real estate development to their portfolio allows these architects to become design-builders.

In deciding to make this shift, your first project will depend on several circumstances including whether you already have a day job and want a low-risk scenario or if you’re completely dedicated in time and resources to pivoting towards real estate. Alternatively, you could take relevant courses, earn a MBA or real estate development degree, reach out to experienced peers for advice or mentorship, and look into work opportunities to learn and build competency under knowledgeable people or real estate developers.

Different Approaches to Become an Architect as Developer

For more specific scenarios, the following are proven paths on which to transition from architecture to real estate and become an architect as developer:

Build Your Own House

According to the acclaimed architect-developer Jonathan Segal, building your own house is the No. 1 recommended course for architects who want to start developing their own projects. You are able to cut design costs, learn about the different aspects of real estate, build a network of collaborators, and perhaps create a blog documenting the entire process in order to reach out to potential clients and other interested parties. As such, the completed project can be an excellent marketing asset and turn you from a DIY builder into a design-build expert just like Zeke Freeman, principal architect at Root Architecture + Development.

Renovate Existing Buildings

Once you’ve found and bought the right property to renovate, you need to arrange financing. To avoid overinvesting and overcomplicating the design of a first development project, you can take out a mortgage or a bank loan; release equity from your own property to re-invest in the new; or sell, rent out, or remortgage the renovated property. If this seems like a plausible path for you, a inspiring example of an architect who got into real estate development through renovation projects is Cary Tamarkin. He purchased and renovated 140 Perry Street in New York’s West Village at the tail end of a recession, a beginning success that led to his firm being one of the leading design-builds in the United States.

Build Co-Housing Communities

To learn on site and avoid assuming all the risks of development, residents and architects are able to have more control over project development by building co-housing. The two most common models of this are co-operatives and condominiums. These differ in terms of ownership, financing, and the architect’s level of involvement. By teaming up with communities, architects can share financial risks, receive part of the profit, and get their project off the ground. For more on personal experiences with co-housing, check out our interview with Berlin-based architect-developer Matthew Griffin.

Crowdfund Your First Project

By generating public excitement about your project from its origins to its completion, you can use several models of crowdfunding, a route specific to the online world. These can be small, innovative prefab structures, projects on locations of great public interest, etc. You can choose to use the donation-, reward-, pre-sales-, lending- or investment-based crowdfunding options, as well as choose between different types of campaigns to mitigate financial risks. If you’re looking to learn more on this topic, here is comprehensive list of all the crowdfunding models architects can use to finance their first development projects.

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What are your experiences with getting a project of the ground? Please share your experiences in the comments below or join The Archipreneur Community to meet your fellow Archipreneurs.

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Dear architects,

I am an independent design-led developer specialising in custom build. My vision is to help change the way that we build, buy and live in our homes in the UK. I wanted to write this open letter to architects to explain how for me, the way that developers and architects interact needs to change. The old rules have been re-written.

I get emails, beautiful brochures and meeting requests from a lot of architects and designers. I enjoy the overtures, but unfortunately, while I work with some brilliant architects and would love to work with more, the reality is there aren’t enough projects to go around.

Observation #1 – Don’t wait for the commission

At time of writing, we are actively working on 5 live projects. This is not unusual for a developer of our size. Our projects include doing the marketing and sales on three developments, and project managing two. We chose the architect in only one of those projects. So, even though we have plans to grow, it will still be only on the odd occasion that we have the opportunity to commission designers.

Observation #2 – Join the pitch

Development for me is bringing everything together, the design team, the money, the building team, the legals, the marketing and the sales down to the queries of the end purchasers.

We look to architects to create the vision for the project, but an architect will only produce a great building if the developer is on board.

In the movie industry, directors and producers find a good script and pitch to the studios together. This is how I think it should be in the building industry. I want to get together with an architect to work up an opportunity on land for sale to a point where I can secure the site and go out and raise money. This is not commission, this is collaboration.

Observation #3 – Spot the opportunity

If I see a piece of land for sale, I will have to choose which architect to work with and that will depend on a number of factors – their experience, size of the opportunity and the location of the site.

Some bits of land for sale already have planning, and some plots will be sold without planning. We have about 30-40 architects who we would like to work with and there are probably 1-3 projects in a year where we need architectural help. So, as they say stateside, ‘you do the math’.

However, architects who have come to us where they have spotted an opportunity, but need help in getting it off the ground, have ended up both with a site-finding fee and the design work. Site-finding is a skill and architects have the basic skills down pat. You are trained and experienced in planning, you can come up with creative solutions to gap sites and you like to cycle (which is by far the best way to spot off-market land)!

Observation #4 – Most developers don’t use architects

I have grown up with architecture in my blood, but not every developer has done so and most developments are ugly, bland and crass. Most, unsurprisingly, don’t use architects at all. I’ve heard that as few as 20% of new schemes have architects involved.

So, when you’re pitching to developers, you have to pick the ones that value architects. Don’t pitch to people who want the smallest possible flats and the flimsiest possible build quality – they don’t want you, and probably, you don’t want them either.

Instead, pick your developers carefully and they will buy into you and your design vision.

Observation #5 – Come prepared

The next time you request a meeting, don’t simply introduce your practice with a beautifully designed glossy brochure and past projects, come with an opportunity that you’ve spotted. It’s more fun, rewarding and more likely to lead to working together.

Developers will be impressed with your pro-activeness and I’ve never known a developer to turn down the chance to look at an interesting opportunity.

A word of warning, take care you don’t give away the land for sale to unscrupulous developers who will bid on the land from under you and then use your ideas.

I hope you found the above helpful and I would welcome your thoughts but most of all, I look forward to working with as many of you as possible.

Yours,

Gus Zogolovitch

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Gus Zogolovitch is the Managing Director of Inhabit Homes.

He started his career in the City at Goldman Sachs where he was an equity analyst before he set up his first property specialising in residential projects. He ran this venture for a couple of years alone before he joined his architect father, Roger, and set up Solidspace with the aim to deliver design-led boutique new-build projects on forgotten inner city gap sites. He pioneered the Solidspace split-level model by building his own house in north west London where he still lives today. 

Gus has most recently started his own venture, Inhabit Homes, which acts as London’s first custom-build enabler, helping people build their own Grand Designs while also selling some of the most desirable new-builds in London. 

The post The New Rules for Architects and Developers: 5 Insights from an Industry Insider appeared first on Archipreneur.

Slender – Bender is the first building of Deadline’s architects Matthew Griffin and Britta Jürgens. In embarking on this project they deliberately assumed the dual roles of architect and developer. As young architects and almost no experience in building it was impossible to find someone to trust them, so they became their own clients. By thus expanding their profession’s field of action, they maximized the creative potential of their project.

“We believe,” Matthew Griffin said in an interview with archipreneur, “that to have the chance to do groundbreaking architectural work, you have to have control of many of the aspects that traditionally lie with developers.”

After a two-year search, they purchased a narrow site on a busy street in Berlin-Mitte. The front half of the site was an overgrown bombsite. The slender four-storey building surviving at the rear contained eight small apartments and had seen little change in the previous 50 years.

Because of their subsidiary role as developers, the architects were able to give priority to architectural quality throughout negotiations with the banks, the bureaucracy and the builders.

The finished project is a complex interweave of new construction, and renovation. In the first phase the architects completely transformed the narrow original wing by renovating the apartments to create six “minilofts®” – apartments that can be rented as an alternative to hotel rooms. On top of these they constructed an award winning two-storey family “house” (Slender) with a roof garden.

The second phase (Bender) is rooted in the first. The two floors and the roof of the “house” are accessed from the addition. Three bent stainless steel ribbons embrace the existing rear wing behind and navigate between the buildings on either side. The resulting building presents a strong outward thrust, a striving towards the future that is grounded in the past.

Combined these buildings comprise the minilofts® – run as a family business –, Deadline’s office, a shop, car parking and a family “house” on top of the house.

Location:

Hessische Str. 5, Berlin, Germany

Project Data:

Bender 

• Architect: Deadline architects: Matthew Griffin and Britta Jürgens
• Client: Jürgens, Jürgens, Griffin GbR
• Construction: May 2003 – April 2004
• Gross floor area: 560 sqm (2,028 SF)
• 1 shop 30 sqm (322 SF)
• 8 miniloft units  each 45 sqm (484 SF)
• 1 office maisonette 100 sqm + 10 sqm terrace (1,076 + 107 SF)
• 4 parking spaces

Slender  

• Architect: Deadline architects: Matthew Griffin and Britta Jürgens
• Client: Jürgens, Jürgens, Griffin GbR
• Construction: August 2001 – May 2002
• Gross floor area: 130 sqm (1,400 SF)
• Balcony and Roof Garden: 70 sqm (750 SF)
• 6 miniloft units each 40 sqm (430 SF)

The post How the Architects at ‘Deadline’ Became Their Own Clients to Design Their First Building appeared first on Archipreneur.

This week’s interview is with Alex Díaz and Esther Gallardo, architect-developers and founders of Díaz&Gallardo, the Unusual Real Estate company based in Barcelona.

I really like the way they describe their practice of creative urban development on their website:

“[A]n apparent disorder guides our work in order to reach a type of home you would own if you still were a child — a home in which the society has not injected its rational way of thinking yet. This home’s concept is a blend between memories, sensual experiences, flashbacks and current trends.”

The fruits of these labors are domestic properties in Barcelona and Madrid that they then put on the market. They “are dense, small, bright, delicate, sophisticated, sensual, funny, unique, exclusive, organic, smart, full of energy, surprising tips and, above all, highly attractive.” Alex and Esther unveil a truly Mediterranean lifestyle to downtown Barcelona and Madrid by improving and strengthening ties between inhabitants, and the streets outside: la buena vida!

Keep reading to learn how these two architects found their way from working for clients to becoming their own clients as architect developers.

I hope you enjoy the interview!

When did you two team up as business partners and what are your respective professional backgrounds?

We became business partners – and a couple – about 15 years ago. Our first office was in a coworking space in the center of Barcelona; an 8 sqm office! A tiny office. There, we really learned how to design and live in small spaces, haha!

Both born in Barcelona, we studied and graduated with a degree in Surveying, Technical Architecture and Building Engineering. Thereafter, we opened our first office, DF-Studio, which was a multidisciplinary studio for art, architecture and design, designing bars and restaurants, urban sculpture, and interior design.

Later, Alex got a degree in Architecture at the International University of Catalonia (UIC) and was responsible for Sustainable Construction at the UPC over four years. Similarly, Esther graduated with a Master’s in Project Management from the UPC and the Association of Technical Architects and Building Engineers in Barcelona.

On your website you use the term “Architect As Developer.” When did you decide to combine the two practices?

In 2008, the financial crisis began. In Spain, the housing “bubble” burst.

At that time, our clients disappeared and Spain fully entered into the so-called “Great Recession.”

At that time, we decided to try to create a business “without clients.” We found our own trust in our architecture to always be the best solution, so we decided to become developers of our own architecture: Architects as Developers.

Now, we develope and sell and an average of 10-15 apartments per year.

What made you decide to found Díaz&Gallardo Unusual Real Estate? Was there a particular moment that sealed the decision for you?

The exact moment was in 2009. First of all, there was this absence of Spanish customers; second came the search for freedom of design. Many times, customers clouded and modified our initial ideas for the project. We did not like this. Therefore, for certain projects we decided to not accept more work from external clients. We became our customers.

Could you describe the phases of one of your projects step-by-step?

The traditional process is reversed: the customer arrives at the end. After the first instance of purchasing a building or property, we try to develop a story about it. We imagine what kind of person might live there. We decide on all the little quirks and details; a “pret-a-porter” for an imaginary person. This fictional character then becomes the leitmotif for the project. We build and finally put the property on sale.

It’s very, very peculiar that in 90% of the cases the buyer-client is very similar to the person we imagined living there. This is what we call “Unusual Real Estate”; it is a kind of pret-a-porter apartment without the clients who normally start the ball rolling.

You work with an interdisciplinary team. How many people do you employ and what are their respective professional backgrounds?

In the office we are just two people: Esther and Alex. In construction, we employ 10 people: masons, carpenters, blacksmiths, and electricians. Recently, we have also hired a broker for our sales. For the photographs, we have two photographers. Alex also makes photographs from time to time.

Do you have a better knowledge of real estate development than other architects?

Esther, as Master Project Manager, has great knowledge of the real estate world and Alex designed a real estate agency in the final project for his Building Engineer degree. We are a rare species. In general, in Spain, architects do not have knowledge of real estate development. It is something new.

Your projects are all located in Barcelona and Madrid. What is special about these cities? What special development does the market demand?

The two cities are very beautiful and also very different. Therefore, customers who buy our homes also are different.

In Barcelona, our customers are either Central European or North American looking for a pied-à-terre in Barcelona; to enjoy the city while on vacation.

In Madrid, our client has another profile: the buyer is an investor who buys our properties and then rents them with a good return on investment for their designs and central location.

In both cities, our homes are sold, “where things happen”: in the center of the metropolis.

For fresh architecture graduates who know very little about real estate development, how would you break down the process of getting the first project off the ground?

We wouldn’t dare to give advice! Perhaps to believe in your own ideas, but nothing more.

How do you carry out market research and how do you find locations for your projects?

In the beginning we used the Internet, but we no longer do that. Instead, we visit the places where we are interested in investing and speak with people who have business there. From these conversations, we find good locations and possible selling prices.

We have done the reverse for many people, going from digital to analogic. We walk more than we browse on the Internet. We know the city, the streets and the buildings – that is our strong point. We have lived in these places for many years, so we have plenty of local experience.

How would you finance a project in its first stages of development? Any tips on how to manage it?

To finance the initial investment, we sold our home. If possible, it is of course better to finance it by itself. Working with banks can help, but repaying debts may delay recovery of the investment process. At some point you will have to make important decisions that will sacrifice your personal and family life, certainly at the beginning.

Do you have any advice for “Archipreneurs” who are interested in starting their own business?

Do it with conviction. Without fear of failure.

How do you see the future of the architectural profession? In which areas (outside of traditional practice) can you see major opportunities for up and coming developers and architects?

We see a future for the architect as becoming more hybrid, and as breaking away from the traditional ideas of the profession. We see an architect who, in addition to designing buildings, is engaged in social and cultural problems, and not solely in problems to do with geometries and volumes.

There are no politicians with a background of architecture yet (expect the Major of Venice). We believe that this could be a great opportunity for architects in terms of social development. A lot of problems of cities and countries could be solved with urbanism.

About Alex Díaz and Esther Gallardo

Alex Diaz and Esther Gallardo, born in Barcelona, graduated in Technical Architecture from the Polytechnic University of Catalonia (UPC), after which they opened their DF-Studio. The DF-Studio was a multidisciplinary studio of art, architecture and design, restaurant and bar development, urban sculpture, and housing.

Later, Alex got a degree in Architecture at the International University of Catalonia (UIC) and was responsible for Sustainable Construction at the UPC over four years. Similarly, Esther graduated with a Master’s in Project Management from the UPC and the Association of Technical Architects and Building Engineers.

After years of work at their DF-Studio and exhibiting their projects at the World Trade Center, Barcelona, Alex and Esther became developers of “special housing” platforms, “After Living” and “Homy”, which came prior to their company Díaz & Gallardo Unusual Real Estate. Now, they develope and sell and an average of 10-15 apartments per year.

Constant innovation, research and investigation of a “superior aesthetic level,” sustainability and humanism are the formal principles of their projects and marketing endeavors. Endorsements, exhibitions and awards for works such as the photovoltaic facade Schott at the CTAE Aerospace Technology Center, and the building of 60 apartments, Carrilet242, in l’Hospitalet de Llobregat, are two examples of these principles in action. For these projects, they received the Innovation Mention in Catalonia Construction Awards in 2009 by the Generalitat of Catalonia.

Their latest project: two children, Max and Alexandra.

The post How two Architect Developers Became Their Own Clients – Díaz&Gallardo Unusual Real Estate appeared first on Archipreneur.

After completing his studies at University of Idaho and gaining experience at two architecture firms, Jonathan decided to start out on his own. He developed his first project when he was just twenty-five years old. He realized that, without client compromises to bog him down, he was capable of much more than he thought. Taking control of every aspect of his projects, from designing to financing to building, he gained a wide breadth of knowledge that he could put to practice.

Jonathan has an exceptional archipreneurial approach to his work, and a gift of combining business acumen with exquisite architecture. Using his architectural skills, as well as his deep understanding of space, light and texture, has allowed him to develop beautiful, well-planned buildings. This recognition of using space creatively is hard for regular developers. By applying his tenacious enthusiasm and sharp eye for location and placement to every project, Jonathan has been able to build and create great projects in urban neighborhoods in San Diego.

As such, he has achieved a great deal in the world of architecture and become a highly regarded developer in his own right. Jonathan has been awarded a multitude of honors for his work, including making the 2010 Residential Architect ‘RA50 Short List’, and winning Project of the Year at the 2012 Residential Architect Design Awards for ‘the Charmer’. He has also received numerous other accolades, including 24 State, national and local AIA awards for urban and residential design.

It sounds like a great way of doing architecture – but we should also be aware of the risks it entails. Acting as the developer also means taking on board all the risks that can arise from a project. Architect developers should have a certain degree of knowledge in real estate development in order to understand the whole scope of a project – from financial matters to the mechanics of the project structure. For instance, they need to know how it is possible to find and acquire land, how to assess which product will function for a specific market, and how to get project funding

How to go it alone in the world of architecture

Jonathan Segal has developed and designed a method for architecture practice that gives control back to the architect. He has also created his own product based on this method, an online course called ‘Architect As Developer’, which is very successful and further proof of his business sense.

These online seminars cover everything from development strategies and principles to construction loans and bank financing to land acquisition and construction contracts. After watching the foundation lessons, subscribers will gain access to ‘Jonny’s World’; a series of video updates about Jonathan’s latest projects and pro tips. The whole course is priced at around $500.

Jonathan says that by eliminating clients and contractors from the design and building process, architects have the ability to become the ‘owner’ of their own projects, directing them, and achieving financial independence. By learning the same skillsets and tools as developers, architects also have the power to take initiative and create whatever they want, exactly how they want it.

He recommends that new architects developers should start small, find a niche in which they are comfortable, and be prepared for something to go wrong. Jonathan also recommends that new architect developers build relationships with realtors who can point them in the right direction and help find available property. Jonathan says that maintaining relationships with your broker and treating your subcontractors well is of utmost importance when going it alone.

The true learning curve will only come when you really immerse yourself in the inception of your first project. If you are still at school or university and/or are interested in studying the whole method, Jonathan also teaches the Master’s program in Real Estate and Development at the Woodbury School of Architecture, alongside other experienced architect developers, such as Ted Smith.

You can hear more about Jonathan and his method and get a taste of how he operates in this thirteen-minute Jonathan Segal Documentary about his architecture practice.

Here are a few further links about him and his seminar:

• Jonathan Segal Architecture + Development
• Architect as Developer course
• MSArch – Real Estate and Development for Architects, Woodbury School of Architecture 

What do you think of Jonathan’s approach? Have you already taken his seminar? We welcome your thoughts in the comment section!

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