Accessory Dwelling Units or ADUs have been a non-stop discussion here in Denver and quite frankly all over the nation. Accessory Dwelling Units have been touted for being compact and independent from the existing home on a property, but another benefit that is overlooked is their environmental impact. That environmental or eco-friendly strength comes in the form of “urban infill”. Wherever an opportunity to improve and maximize housing under population density concerns is, ADU plans have been flooding the city officials' desks. That is a good sign, with a nationwide housing crisis building properties that fill out vacant spaces of densely populated neighborhoods can help alleviate housing woes. But let’s take a closer look at what an ADU can do.
What is an Accessory Dwelling Unit?An Accessory Dwelling Unit or ADU is what the name suggests; a separate livable space sharing the same property lot of a residential home. One may have seen some in the past as in-law suites, granny flats, converted garages, and so on. ADUs are essentially entirely different home that is around 400 square feet. According to the National Association of Realtors, around 100,000 ADUs are being built a year. That number is most likely on the rise with any indication of the current status of Denver’s own permitting and review department. Regardless, Properties with an ADU are in high demand as they bring a unique strength to large metro areas where space is limited. In Fact, ADUs have priced an average of 35% higher than homes without. ADU is a popular solution for additional housingThere has been a slump in new residential construction for quite some time now. Renters and potential homebuyers are well aware of that as inventory and volatility make it a tumultuous landscape to navigate. ADUs are a solution that can be built right in the backyard of homes and kept within the family that owns the property. Those ADUs can be used to house extended family or younger generations close by. Alternatively, families seeking to generate passive income or generational wealth can employ an ADU as an easy-to-manage renal unit. The bottom line is that an ADU creates a small footprint but tackles one of the biggest challenges cities are facing in housing. How are ADUs Sustainable and Eco-Friendly?In terms of sustainability, a local real estate investor and seasoned developer Lin Merage says, ADUs are helping by providing “urban infill”. This means they are creating more housing in neighborhoods that are already established with only single-family homes. This helps calm the demand for creating more and more sprawling neighborhoods on the outskirts of major cities and towns. With that point, ADUs are more eco-friendly because they help house people more closely within the city. This cuts down on commute times which add pollutants to the air. Additionally, the compact nature of an ADU is eco-friendly. The smaller living spaces require fewer building materials which help address the supply and demand of natural resources needed for fabrication. Even more, the smaller size translates to a smaller footprint on energy requirements on the urban area’s infrastructure. ADUs can seamlessly integrate with residential neighborhoods unlike a large multifamily development being erected in a nearby park.
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As a real estate investor, Lin Merage has viewed countless properties that can operate as an ideal rentals for financial goals. The importance lies in a property's ability to cash flow or generate a passive flow of income. Some properties are perfect as they are and can be immediately turned around for rental purposes. Others might require some renovation or remodeling. A new trend that has been going strong for the last couple of years here in Denver, is adding an entirely new detached unit on a property’s lot. An Accessory Dwelling Unit or ADU, has been on the rise for many homeowners and real estate investors. The main appeal for these projects comes from their ability to be completely separate homes that literally step away from the main house on a property. The natural privacy of an ADU makes these types of properties sought after as a rental units for both short-term and long. But as Denver’s interest in ADU construction continues, realties start to reveal the challenges with building one.
Building an ADU requires an extensive amount of time to navigate the design, permitting, and construction. These factors should be considered for real estate investors and homeowners as it significantly delays the potential cash flow. Lin Merage says beware of the ADU rental trend if one is looking for an immediate rental unit to cash flow on or is looking to start a rental portfolio. Why is Cash Flow important for a rental unit? Cash flow is the amount of profit a rental property owner earns when collecting a tenant's payment and paying off operating expenses. When looking at a real estate investment property, the ideal property will have a positive cash flow (although it is possible to have a healthy rental with a negative cash flow). This ensures that the rental unit is not only contributing to its equity but also generating a passive income that can help build wealth for a homeowner or rental owner. Traditionally, those who are buying or preparing a rental unit have a short time before its cash flow resumes (ie. being occupied by a tenant). However, an ADU creates a series of phases before it can be brought to the rental market. Thus, an ADU takes a significantly longer time to start cash flowing and the owner will be making payments for a construction loan and other costs until then. Lin Merage says to beware of ADU rental projects because they are not beginner-friendly projects to start a rental portfolio. Other rental properties and homes are available that can be quickly turned into profitable units. Lin Merage says beware an ADU will add two years to your strategy An ADU is considered a major residential construction project here in the city of Denver. According to many sources, the city’s Planning and Development Department has been swamped with reviewing project plans for building permits. So much so, that the average time until permit approval is approximately around 252 days! If one were to factor in the time needed to draft and finalize architectural and engineering plans to submit initially, one could easily see almost a year in wait time for permit approvals! Finally, once permit approval is given the actual construction can take place. Depending on the general contractor or design-build company, one could expect such a large new construction job to take most of another year. Putting these two phases together, real estate investors and homeowners can safely assume almost 1.5 - 2 years before their ADU project is completed and move-in ready. Lin Merage is a seasoned professional when it comes to real estate investment strategies. Her experience can divine sensible solutions and projects. If you are interested in more information about real estate investing or are interested in working with a seasoned professional, take some time to view SSRE Sustainable Real Estate of Lin Merage. Following her discussion earlier this month, Lin Merage is excited to share about a new sustainable farming project that is happening right here in the middle of Denver! An article from the Colorado Sun detailed a sustainable farming operation being run by two brothers out of a shipping container in an old used-car lot in Denver. The project is aptly named Ullr’s Garden following the brother's time growing up in Breckenridge honoring Ullr Fest. More importantly, the project showcases a viable use case for undeveloped lots in urban areas to house a sustainable crop farm.
Ullr’s Garden a local produce farm Nick Millisor and his brother are the ones in charge of a lonely shipping container in the back property of an old used-car lot. However, the shipping container is anything but ordinary or mundane. Inside, the brothers have successfully cultivated a range of leafy greens; lettuce, romaine, basil, and arugula. According to the article, Ullr’s Garden was started this year of 2022, and is producing its first crops of many. This project houses a hydroponics growing operation in a single shipping container and already produces the number of crops a 5-acre seasonal farm would produce. What is more is that is only a single growing station (one shipping container), which the Millisor Brothers are already addressing by establishing stackable versions. “We are growing local produce, in the middle of Denver… as anyone who’s seen a modern port city… they’re stackable”. Although hydroponics is far from the main solution to work alongside traditional farming in terms of supply and profits, it does have a viable business model and an even more viable reason to pursue it. There are many large hydroponic farms and operations throughout Denver and the cost averaging still requires some flexibility. Apparently, the seasons and growing cycles are not the concern, but the space and amount of resources for a type of crop have been the main deciding factors of cost. Traditional Farming vs. Vertical FarmingAccording to Dr. Kai-Shu Ling, a plant pathologist at the University of South Carolina's vegetable research lab, vertical farming can produce crops that are more seasonal and regional than traditional farming. A vertical farming operation involves growing crops inside a building. It then uses various methods such as artificial growing systems and hydroponics. This method allows growers to plant their crops indoors all year round. Traditional farming is far from being outmoded in our daily lives. Traditional farming will continue to be the main method and supplier of products for many years to come. However, it has come to a known issue that modern society is putting a strain on traditional farming. With ever-increasing populations and food demand, more and more product needs to be cultivated. Farmlands themselves are struggling with problems surrounding climates, pesticide use, and bioavailability in the soil. While not the single solution to the future of crop farming, vertical farming has shown strengths through its compactness, resource efficiency, and ability to grow crops year-round without concern for seasons. Real Estate Investors can find a new use for buy-and-holdFor buy-and-hold properties, real estate investors might be able to take advantage of vacant urban lots and turn them into thriving providers to the local neighborhoods. Lin Merage and her company SSRE Sustainable Real Estate have always sought sustainable solutions through real estate investment strategies. The idea of shipping containers being stored on a vacant lot may seem aesthetic off, but if they are outfitted with a thriving business the outlook changes. In the article, the Millisor Brothers of Urll’s Garden have plans to scale their operations up, quite literally. “Vertical farming takes place inside, grows crops in stacked layers, and uses artificial growing systems such as hydroponics, aquaponics, and other methods.”. In the sense of a buy-and-hold real estate investment opportunity, a party can purchase an underdeveloped lot and start an operation (or rent) for this high-mobility business with a low impact on the lot and infrastructure. It is even stated that the lot Ullr’s Garden is on doesn’t even have a water tap from Denver Water. All they need is 5 gallons of water a day that is brought in from an outside source. Talk about a supplemental cash flow operation over a long-term buy-and-hold opportunity! Regardless of the business opportunities involved, Lin Merage and many others are fascinated with this sustainable solution to an upcoming concern. Ullr’s Garden brings innovation to urban farming solutions that can cut down on supply issues, resource efficiency problems, climate hazards, and logistical challenges. New development and redevelopment projects in Denver are continually subjected to a long list of requirements, criteria, approvals, and fees. At nearly every stage of a land development project, a real estate investor group or owner can expect city officials to be involved. Even before construction begins real estate investors will have to follow strict guidelines from the City and County of Denver with the help of their development team. For example, every new construction project in Denver must provide documentation regarding the updates to the site's Sewer Usage and Drainage. Lin Merage has often found that items like these during the pre-construction phase can severely affect a project timeline and potentially the scope.
Sewer Use and Drainage Permits (SUDP)As mentioned, any new construction or redevelopment projects need approval from various departments overseeing the City and County of Denver’s neighborhood development. The Department of Transportation and Infrastructure (DOTI) is responsible for Denver's stormwater and sanitary systems. When a new development or redevelopment is proposed, those real estate investors and development teams must show that their project will fit within the existing infrastructure and resource usage is within boundaries. Through Civil Engineering and Site Development Plans, calculations and specifications are reviewed by Denver’s Wastewater Engineering team. If everything is acceptable, then the project will be supplied a Sewer Use and Drainage Permit or SUDP. What does a SUDP cover?Wastewater Engineering review and approval is required for all new major development and redevelopment in the City and County of Denver involving the following:
Why are SUDPs a concern for real estate developers?A SUDP is just one of many reviews within a very long process in order to develop land in Denver. Real Estate Investors and Developers should be aware of these certain requirements as they can affect the timeline of a project and even change major aspects of a build. Obtaining any permit within Denver will have development teams working back and forth with the city’s own reviewers. The correspondence about the documents and specifications will be lengthy. If multiple rounds of comments are had, development teams can expect months in turnaround time for the actual approval of a SUDP. naturally, time is of the essence for any project and will hurt funding. Lin Merage has had plenty of experience navigating Denver’s permitting processes including the process for SUDP. This is why she finds it imperative to partner with those who are experienced and can provide insight for a land development project. Lin Merage spends a great deal of her time advocating for sustainable practices. Lin Merage's extensive experience and learning opportunities has translated into valuable connections to industry organizations, including the Organic Trade Association, which promotes organic farming initiatives to, among other things, improve soil sustainability.
According to the Food and Agricultural Organization of the United Nations (FAO), in 2014, roughly one-third of the Earth’s soil was degraded due to poor farming practices such as chemical-heavy farming and deforestation. The organization states it takes close to 1,000 years to replace three centimeters of topsoil. To maintain soil health, FAO says organic farmers use practices such as crop rotation, symbiotic associations, inter-cropping, organic fertilizers, cover crops, and minimal tillage. These promote water and nutrient retention. Because synthetic (chemical) fertilizers are prohibited in organic farming, ground water pollution is reduced. According to the FAO, using natural fertilizers such as compost and green manure increases the amount of nutrients retained by the soil. The organization also states that organic farming has been credited with maintaining biodiversity at the gene and species level, which promotes overall soil health. It also promotes carbon retention in soil, which reduces global warming. A Colorado entrepreneur with an interest in sustainability, Lin Merage keeps informed about a variety of issues relating to the environment and healthy living. A supporter of the Organic Trade Association (OTA), Lin Merage appreciates the organization’s work performing evidence-based research on the health and environmental benefits of organic farms and food.
Sales of organic products in the U.S. have reached a new high mark, with $52.5 billion in total revenue in 2018, according to an OTA release. The organic food market accounts for most of the overall organic industry sales, at $47.9 billion in 2018. The remaining organic sector sales of $4.6 billion included non-food products. With a 6.3 percent increase in organic product sales compared with 2017, the latest sales numbers show that organic items have become more mainstream. Some of the shift toward favoring organic items is due to the younger millennial generation, which has been demanding increased responsibility and transparency from the food supply chain. Also driving the shift to organic items are people who want to avoid contaminants such as pesticides, chemicals, dyes, and artificial preservatives in their food. A Colorado-based entrepreneur with a passion for sustainable living, Lin Merage supports organizations such as the Organic Trade Association and the U.S. Green Building Council. Also a supporter of women’s organizations such as the Colorado Women's Chamber of Commerce, Lin Merage has an interest in advancing the leadership of women in the business sector.
One of the greatest challenges faced by many working women is balancing the dual responsibilities of career and family. Nearly 70 percent of the women in the U.S. workforce are mothers, according to the Bureau of Labor Statistics. Women often face societal and family expectations to put their home lives first, which often leads to reduced employment and limitations on career advancement. However, there are several strategies women can use to strike an optimal balance between work and family. For instance, women can work to set expectations with their bosses about the size of their workloads and the length of their workdays. Other ideas to free up time include moving closer to the workplace to eliminate long commutes, or selecting positions or assignments that offer flexible schedules. On the home front, women can work to set expectations with their family members about what they are able to accomplish before and after work, making sure to delegate some household tasks to their spouses or older children to divide up the labor. A Colorado entrepreneur who engages in various philanthropic activities, Lin Merage pursues her interest in women’s leadership, social justice, and sustainability, Lin Merage also stays informed on current events and issues related to the environment.
The overuse of plastic continues to concern environmentalists and adversely affect the environment. In this regard, its use as product packaging is the leading generator of waste. Clamshell packaging is one of the biggest challenges to the recycling industry due to its popularity among major retailers and consumers who don’t recycle them. Clamshell packing resembles its namesake: an item is placed between two plastic pieces that fit around it in a shell-like way with a hinge on one side. The other sides snap together to seal the package, sometimes in a manner that requires tools to open them. Their transparency makes the object inside visible on both sides of the package, and its light weight allows for easy transport, which is why retailers favor them. Consumers contribute to the problem by failing to recycle or doing so improperly. While clamshells are made from a highly recyclable material, most material recovery facilities can’t sort them apart from other items. Moreover, clamshells with sticker residue or unremovable adhesive stickers cannot be recycled at all, nor can those that are destroyed while attempting to remove the item that they contain. However, consumers can make a difference by ensuring that clamshells and other plastics are properly recycled. They can also scrape away sticker residue by washing the area with warm water and dish soap or smearing a bit of peanut butter on it, both of which can make the residue easier to scrub off. Lin Merage is a Colorado-based entrepreneur with a strong interest in sustainability, business, and women’s leadership. Regarding the lattermost area, Lin Merage follows annual listings of the most influential women nationally and internationally. Platforms include Forbes’ list of The World’s 100 Most Powerful Women. The rankings comprise innovative and inspiriting women across the tech, business, political, and philanthropic spheres and celebrates those who create a lasting impact and catalyze change in power structures. Placement and position on the list is determined according to evaluations in four categories: influence, impact, media presence, and money. Forbes released the 2018 list of the World’s 100 Most Powerful Women in December 2018. Signifying its 15th year running, the list included 20 new names and notable shifts in the rankings of many individuals who frequently appear on the list. German Chancellor Angela Merkel topped the list for the eighth year in a row. For the complete roster of The World's 100 Most Powerful Women, visit forbes.com/power-women. Just Label It! Campaign Leading Fight to Force FDA to Require Labels On Genetically Engineered Foods7/3/2013 By Lin Merage
As the CEO and Business Manager for an eco-friendly product and food retailer, I have a deep personal interest in organizations focused on encouraging healthy change in our nation’s food industry. Last week I learned that the Just Label It! (JLI) initiative received its one-millionth signature on a petition asking that the Food and Drug Administration (FDA) require labels on all genetically modified foods. Genetically modified foods derive from genetically engineered organisms, which are changed through selective breeding, exposure to radiation or chemicals, and other methods to create larger agricultural yields. Since JLI’s founding in October 2011, the grassroots campaign has received significant consumer support, showing Americans’ general dissatisfaction and concern with GM foods. In fact, a study commissioned by JLI found that 92 percent of Americans from a cross section of political backgrounds, including Democrats, Republicans, and Independents, favored labeling. For more information on JLI, or to join the cause, visit www.justlabelit.org. About the Author: Lin Merage founded is a sustainable entrepreneur with the goal of finding high-quality, environmentally friendly products. |
AuthorA longtime advocate for sustainable living, Lin Merage currently serves as the CEO of Nature-In-Sync Real Estate, a company that retrofits buildings and homes using a variety of green and non-toxic materials. Archives
November 2022
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