Real estate firm banking on concrete houses to help solve affordability crisis

No matter what community you go to, there’s a likelihood that affordable housing is a hot topic. A real estate investment firm thinks it has the solution to bring more affordable housing to Northeast Ohio.

Northeast Ohio native leading the charge

Ron Carson, an Aurora native and the Vice President of GLH Capital, a real estate investment firm, sees a lot of potential with an empty lot on Carol Drive in Maple Heights. He joined me at the site, which is nestled in an established neighborhood.

“The pathway to wealth in this country is through home ownership, and that’s what we’re trying to provide,” Carson said.

He’s brought together a team that has an ambitious mission.

“To build 2,000 high-quality, affordable homes for people that have been historically left out of the American dream,” Carson said.

But the team isn’t talking about your conventional wood-frame properties. The three-bedroom, two-bathroom, more than 1,700 square foot homes will be built out of concrete panels. Carson said the sale price will be no more than $275,000.

GLH Capital & Baya Build

“All throughout Europe, they’re building concrete homes, but no one is doing it for the most part here in America, outside of down in Florida or maybe throughout the southwest, but not here,” Carson said. “That process is going to allow for us to build a home, a high-quality home, at an affordable price.”

Baya Build is one of the partners

One of the partners is Baya Build, a technology-driven construction company based in Florida.

Baya Build’s Founder and CEO, James Casper, said his company is acquiring and retrofitting Cleveland-based Pompili Precast Concrete with large 40-foot-by-12-foot mold machines, including hydraulic ones, to produce the concrete panels needed for the affordable housing project.

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“Our panels are threefold. They’re structural, they’re insulative, and they’re architectural,” Casper said. “What we’re doing is six and a half inches thick panels. Whether it’s hurricanes or whether it’s tornadoes, these are fully safe homes.”

Casper said it takes about two dozen panels to build their homes, and the factory will initially be able to crank out enough panels to build a home in about a week and increase that volume as more equipment comes online.

Casper said the panels are shipped to lots and can be assembled in a matter of days.

Two ranch-style layouts will be offered. One features a loft.

Baya Build

“When we designed this home, we figured it was a home that someone wouldn’t have to graduate out of,” said Mike Ferrante, a broker and team leader with Century 21 Homestar. “They could start as a first-time buyer and live in this home for the foreseeable future.”

Ferrante said there’s demand for this style of home, and his team conducted extensive research, including focus groups, to guide those involved with the project.

First homes to be in Warrensville Heights and Maple Heights

So far, there are agreements to build 15 homes in Warrensville Heights and 15 in Maple Heights.

How will these homes stay at a sale price of no more than $275,000?

GLH Capital cites the construction method and speed and efficiency of mass production, the fact that they were able to purchase land through land bank deals, partnering with banks that will offer down payment and closing cost assistance, and the tax abatements for buyers that are offered by Warrensville Heights and Maple Heights.

Maple Heights mayor weighs in

Maple Heights Mayor Annette Blackwell said when she heard about interest in bringing new homes to the city, she was intrigued.

“To compete in the real estate market, we need to diversify our housing,” Blackwell said. “So, it was perfect timing and a great way to begin to master plan that out… what new housing looks like in Maple Heights.”

She said today families are looking for things like a second bathroom and open floor plans. She said the city’s housing stock is currently made up of lots of bungalows.

“My own son moved back to Maple Heights, and they’re looking for a different kind of home. Trust me, they don’t want a bungalow,” Blackwell said.

She called it a no-brainer to put homes back into neighborhoods where, in some cases, they’re replacing homes that were foreclosed, fell into disrepair, and were demolished.

“The guts are there. The utilities are there. You just kind of build it and plug in,” Blackwell said.

Home locations

GLH Capital’s homes will be on Carol Drive, Kennerdown Ave., South Blvd., Krems Ave., Maplewood Ave., Maple Heights Blvd., Arch St., Cato St., and Stanley Ave. The City of Maple Heights said the properties were sold for $2,500 per parcel.

Maple Heights offers a 100%, 15-year tax abatement on the increased value of new single-family homes. This means buyers won’t pay taxes on the structure for that time frame, but they will pay taxes on the land.

“It’s really giving opportunity to many people who are in the market. They’re looking where they can get the most value for their dollar,” Blackwell said. “Where there’s a tax exemption, we’ve seen people who may not have looked at Maple Heights are now looking at Maple Heights, because of that incentive.”

Blackwell said the city makes it up on income taxes by expanding the base.

The City of Warrensville Heights said GLH’s homes will begin their first phase in the Brentwood community along Longbrook Road. It said each parcel sold thus far went for $100.

The City of Warrensville Heights offers a 75% real property tax abatement for 15 years for new construction, on the building’s assessed value. Buyers will pay taxes on the land.

Expansion plans

Carson said the plan is to expand to other cities in Northeast Ohio, and discussions are already taking place with leaders.

Casper said Baya Build shares the common goal.

“This is taking technology and innovation and creativity and a lot of guts and being able to spearhead this and really change the narrative of affordability,” Casper said.

“We want people to own their homes, build generational wealth, and use that equity to educate their children—so the next generation can have a home, and the next generation and the next generation,” Carson said.

The first completed home on Carol Drive in Maple Heights is expected to be up in about three months.