As contractors begin to see the fallout of the recent shutdown and Chapter 11 bankruptcy of Katerra Construction, the company still has active projects, and work that was once seen by contractors as “dragging out too long” may now find its completion in serious jeopardy.
Let’s take a look (in no particular order) at some of the most significant that Katerra’s shutdown may impact.
1. University of Washington Foster School of Business, Founders Hall – Seattle, WA
Originally intended for opening in 2022, this expansion of the University of Washington’s Foster School of Business was noted as “the first building on the UW campus — and one of the first in the state — to incorporate CLT [cross-laminated timber].”
Katerra’s involvement as materials supplier puts the project in jeopardy — according to a June 2, 2021, report from GeekWire, the project received a delivery of 292 cross-laminated timber panels in May 2021.
2. Hyatt Centric – Austin, TX
Marketed as a “uniquely garage-free” project which was proposed in different forms in 2004 and 2016, the Hyatt Centric hotel (with a restaurant and bar on the building’s ground and second floors) saw struggles gaining funding in prior development cycles before breaking ground in April 2020 with Katerra as construction manager.
According to a report by Towers, “former developers at Nelsen Partners weren’t able to find enough deep-pocketed folks willing to take the risk, no matter how innovative or interesting [the project] might have been.”
3. Fastenal Headquarters – Winona, MN
Katerra was serving as the materials supplier for the headquarters for industrial supply and logistics company Fastenal, providing mass timber for the 100,000 square foot complex.
With an original intended completion date of fall 2021, Fastenal referred to the project as a major crux for both the company and the community in Winona, saying it is “intended to support the expansion of Fastenal for years into the future…this will be an exciting and very busy new addition to the city and we believe will inspire other projects along the riverfront.”
4. Oregon State University School of Forestry – Corvallis, OR
Intended as a unique addition to the Oregon State University campus, Katerra has served as a designer on this project, saying that the complex would serve as “educational and research facilities that extend beyond forestry to include the entire ecosystem, the industries that engage it, and more importantly the wide variety of people who will be environmental stewards of our future.”
In the wake of the company’s shutdown, its design partner Michael Green Architecture, plans to continue work independently.
Michael Green noted that “I was hopeful that Katerra could provide a path, though certainly not perfect, to changes that would reduce the cost of buildings…MGA is always interested in helping…people and the planet stay in harmony.”
5. The Standard at Colorado State University – Fort Collins, CO
Marketed as “new, unique student apartments” with “resort-style amenities centrally located to retail shopping, local eateries, festivals, a vibrant community, breathtaking nature, and a top-notch education,” this project was recently opened to its first tenants during the 2020-2021 academic year.
As construction has continued, tenants have complained about the process, claiming that the unfinished complex has resulted in “breaking of promises and lack of improvements” as Katerra has overseen architecture, construction management, and materials on the project.
6. X Denver 2 – Denver, CO
A 22-story high rise close to the RiNo and Five Points neighborhoods in Denver, Colorado, this project is the latest in the X Community series of mixed residential and retail spaces.
Intended for opening in spring 2022 — with Katerra serving as the project’s construction manager — X Denver 2 is the second X Community project in the city, following the company’s Union Station location.
7. Legacy at Livermore – Livermore, CA
A “a mixed-use multifamily development situated in busy downtown Livermore, CA,” Katerra provided work on the Legacy at Livermore project for Legacy Partners with the goal to “deliver much-needed housing for the greater Bay Area community, as well as public and private amenities.”
Katerra’s work on the unfinished project — which was approved for development in June 2018 — has been significant, including design and architectural work, construction management, general contracting, interior design, and materials supply.
A June 12, 2021, report noted that construction was temporarily paused, with Legacy Partners noting that the company “has contacted the bonding company accordingly… [and] is working with the bonding company so that this development can continue with as little interruption as possible.”
“The bankruptcy of the general contractor for the Legacy project in Livermore is unfortunate but far from catastrophic,” Livermore mayor Bob Woerner added. “The project is fully bonded and construction will restart as soon as the requisite legal and contractual permissions are obtained…[and] the city stands ready to assist where appropriate.”
8. Revel Scottsdale – Scottsdale, AZ
A company statement noted that “Unique to Katerra’s construction services team is the availability of Katerra materials, labor, and architecture” for the Revel Scottsdale project.
The company claims that this “helped streamline the team’s efforts as they coordinated various elements of the project simultaneously on the tight, five-acre site” which makes up the 157-unit senior living facility.
However, the project may be delayed in opening given Katerra’s wide range of responsibilities, as it was originally intended to be opened in fall 2021.
9. Catbird Hotel – Denver, CO
An “independent hotel [that] will blur the lines between hotel and home where the space will allow for flexible lengths of stay,” the eight-story, 165 unit Catbird Hotel in Denver’s RiNo neighborhood features construction management and materials provided by Katerra.
The hotel has yet to open, however, with its website simply displaying “Coming Soon!” on its front page in the wake of Katerra’s shutdown.
10. Aiya – Gilbert, AZ
Designed with Strouse David Architecture, Katerra provided architectural work, construction management, interior design, and material supply for the 360-unit apartment community.
Though the complex has opened partially — despite an original intended completion date of June 30, 2021 — tenants are already beginning to complain about the project’s construction, with some complaining that “These apartments were completely rushed and they should not be allowing residents to move in already. There are no amenities completed and the main office isn’t even built yet.”
11. Seymour East – Montclair, NJ
The Seymour East project was marketed as “a transformative project that will feature residential units, retail, office space, art space, public parking, and a pedestrian plaza” with the goal of spurring “a vibrant arts and entertainment district” near Montclair’s Wellmont Theater.
With Katerra serving as the project’s construction manager, progress is unknown since the project began construction in 2018.
12. Marquee – Scottsdale, AZ
Marketed as “Downtown Scottsdale’s only creative office offering,” Katerra has served as the construction manager for the development of the Marquee office complex since its approval in August 2019.
13. The Smyth – Stamford, CT
A 15-story high rise with 414 apartment units and almost 20,000 square feet of retail space, The Smyth has been under construction since 2019, with Katerra serving as construction manager for the project.
A May 21, 2021, fire on the roof of the project may have set construction even farther back, as the project was originally set to be completed in summer 2021.
14. Alexan Highlands – Issaquah, WA
As construction manager for the project — a 135-unit apartment community — Katerra claimed that its “construction services team is delivering this project with increased efficiency through the innovative use of panelized systems and technology-enabled onsite coordination.”
However, the site’s status is currently unknown amidst Katerra’s shutdown.
15. 80M – Washington, DC
Developed alongside Columbia Property Trust, Katerra marketed its expansion of the 80M building in Washington, D.C.’s Capitol Riverfront District as “the first commercial office building in Washington, D.C. to feature mass timber new construction.”
As materials supplier for the project, Katerra’s work involved “[manufacturing and installing] all mass timber structural components and associated hardware.”
16. oN5 – Vancouver, BC, Canada
Described as “an homage to the beauty, structural performance, and sustainability of mass timber,” Vancouver’s oN5 mixed-use commercial building featured architecture, materials, and structural engineering provided by Katerra.
With the developers putting an emphasis on cross-laminated timber assemblies — one of the materials often used by Katerra — the project was originally intended to be completed in 2022.
17. Society Phoenix – Phoenix, AZ
More than halfway complete in July 2020, the 20-story Society Phoenix residential and retail complex was marked for completion in 2021, with Katerra serving as construction manager.
The complex was noted as the first of two phases by Katerra, making it clear that the 553-unit building will have to find a new direction for its second phase.
18. One Camelback – Phoenix, AZ
Originally expected to finish in 2021, the One Camelback project was marketed as “an adaptive reuse highrise project that will transform an existing commercial office building for multi-family residential use,” with its design based on the building’s original 1983 design.
With Katerra acting as the general contractor and prime materials supplier for the project, meaning that significant delays may be in store for the Walker & Dunlop and ACORE Capital, LLC-financed building.
19. 26 Cottage Street – Jersey City, NJ
A 20-story, 166-unit high rise apartment building, 26 Cottage Street was marketed by Katerra as one of three high-rise projects planned for the same area in Jersey City, intended to “deliver much needed multifamily residential options to a neighborhood primarily made up of low-rise walk-up homes.”
With towers planned at 35 Cottage Street and 26-28 Van Reipen Avenue, developer Namdar Group will require a new construction manager to complete the planned projects.
20. Solis Gainesville – Gainesville, GA
A “multifamily development with repeat customer Terwilliger Pappas,” the Solis Gainesville project features Katerra as a general contractor and construction manager for the construction of a 3-building, 223-unit complex.
The first apartments are intended to be available in early 2022, and Terwilliger Pappas intended to begin pre-leasing in fall 2021 prior to Katerra’s shutdown.
Stay tuned for continuing coverage on the Katerra shutdown’s effects on construction across the US.