Meghan Haynes
Contributing Editor

After more than 20 years specializing in multi-unit projects, Glenn Giles, president of architectural firm Arc Avenue Inc. and general contractor Giles Construction Group, has developed a keen eye for finding opportunities in urban areas. He also has become a champion of adaptive reuse projects such as Pine Crest Village, a five-acre apartment complex built in 1970.

"In terms of cost trade-offs, the purchase price and renovation of a building can be less expensive than demolition and new construction," Giles says. Pine Crest, he points out, was renovated for $54 per square foot, versus the $170 per square foot new construction average.

In addition, working with an existing structure provided numerous zoning benefits in this instance. "The existing structures had already maxed out on heights, lot coverage and parking," explains Giles. "In other projects, once you do this, you reduce sight area or floor level. In a lot of rehabs, you can't replace the zoning benefits already carried with the property, and here we could."

Tarragon Realty Corp. hired Giles' companies to do both the design and the renovation on Pine Crest. Arc Avenue served as the architect for the first phase of the project, which turned 200 apartments into 139 condos averaging around 1,000 square feet. In the second phase, Giles Construction Group acted as general contractor, with Pine Crest as the company's first project. Construction began in late 2003 and was completed in December 2004.

The project's visibility and popularity - the building was already completely sold when construction closed - have led Giles Construction Group to more jobs. Still, no project is complete without lessons learned.

After experiencing some lengthy back and forth with the fire marshal and building inspector over the firewall membrane and a month of wrangling over the piping, Giles plans to tear apart a unit before even giving an estimate to the developer on his next urban multifamily project.

"I want to know exactly how the building is put together. It may cost some money, but our goal is to eliminate change orders," he explains. "When doing something downtown, you can limit a lot of your liability if you go in the wall ahead of time. Some people don't take the time, and they don't make the time because they're not getting paid for it. But you have to spend the money to do the investigation and minimize your risk."

He also suggests that anytime a general contractor is working through a big developer, the contractor should insist that a representative from the developer come to all meetings with city officials to ensure both parties are on the same page, and that any delays or work halts required or requested are not subsequently blamed on general contractor ineptitude. All changes need to be put into writing, he adds.

"As the general contractor, you have to understand every dollar and cent, because if anything goes wrong, you're the one who's not going to get your bills paid," Giles says.

Meghan Haynes is a freelance writer living in Chicago.