Surge Homes | Houston, Texas

Surge Homes is Rising in Houston’s Inner Loop

Greater Houston Edition

themetropolitanbuilder.com

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An Industry Trade Publication | October 2015

F o r L o c a l I n f o r m a t i o n C o n t a c t :themetropolitanbuilder@yahoo.com832-317-4505 www.themetropolitanbuilder.com

5161 San Felipe St. #320Houston, Texas 77056832-317-4505

O w n e r / P u b l i s h e rGiselle Bernard

E d i t o rKathy Stolz

M a g a z i n e L a y o u t & D e s i g nGraham Goodyear

W e b s i t ewww.themetropolitanbuilder.com

P r i n t e d i n t h e U S AGrunwald Printing Co.1418 Morgan AvenueCorpus Christi, Texas 78404

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06 Contingent Payment Clauses in Residential Construction By Ian P. Faria & Jon Paul Hoelsche

08 Distinct Design- The Secret Behind Surge Homes’ Unique Interior Design

15 The Relentless Pursuit of Perfection By Burk Moreland

16 J. Thomas Garage Doors Crafts Distinctive Doors By Kathy Bowen Stolz

18 Houston Housing Picture Bohlke Consulting Group, LLC

20 Greenbuild, NAHB Announce New Strategic Partnership

04 Surge Homes is Rising in Houston’s Inner Loop By Laurie Dent Wegman

Feature Builder Story

I’ve learned that life is unpredictable. I don’t know about you, but with all of the crazy things going on in the world around us and just managing daily life, I often find myself overwhelmed with an abundance of emotions. It’s why I try hard to live in the moment and focus on the now.

According to Sonja Lyubomirsky, Ph.D., psychologist and educator at the University of California at Riverside and author of The How of Happiness, “focusing on the now” elicits happiness and other positive emotions. I have to admit that it’s not easy, but when I do focus on “the now,” it makes all the difference in my world. I’ve read that living in the moment can reduce stress, boosts immune systems and lower blood pressure. Also, those who practice living in the moment are more secure, have higher self-esteem and are more fulfilled and happier

PUBLISHER’S NOTE Giselle BernardPublisher

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people. Well, I’m working on it.

I try to notice the world around me. Paying attention to things that make me happy, even the simple things like listening to my favorite music, can make a huge difference in how I feel. When I take time out of my day to relax and listen to a little soft jazz, I feel content. It puts a smile on my face. And speaking of smiles, have you ever looked in the mirror and just smiled? It’s a great way frame your state of mind and influence how you feel for the rest of the day.

Purposely performing random acts of kindness warms my heart. I love looking for opportunities to give a compliment or assist someone in need. Living in the moment and making others smile improves that moment for me and that someone else. Something else that gives me a sense of happiness and fulfillment are expressed feelings of gratitude and being thankful. They put my life in perspective.

Have you ever had your mind so preoccupied by the realm of worries and future possibilities it made you sick? I find that when I acknowledge the fact that the situation is beyond my control or that my worries are not yet a reality and may never be, I am more likely to be able to relax and just let go. Focusing on problem solving in the here and now gives me more of a sense of peace. Want a little peace of mind? Turn off the TV, turn off your cell phone, tablet and computer, slow down, FOCUS and savor the present. You’re sure to find clarity and contentment.

Giselle BernardPublisher

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Surge Homes is Rising in Houston’s Inner Loop

By Laurie Dent Wegman | Images Courtesy of Surge Homes

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There aren’t many residential real estate developers with enough vision and moxie to shake up the home building industry. Then again, there isn’t a home builder quite like Surge Homes.

The Houston-based firm is run by Louis Conrad and Ben Lemieux, two partners each with more than 25 years of experience in real estate development, management, and consulting. Surge Homes was named in memory of Lemieux’s father, Serge, who began investment in Houston real estate in 1989—a time when only a few people envisioned Houston’s forthcoming population growth. Serge did, and as such, began acquiring prime land for later development. His strategic real estate acquisitions continued through the ’90s and into 2000s, and during this

Continued on page 10

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When it comes to sophisticated modern cabinetry, it is a known fact that Europeans dominate the world scene. Tendances Concept, the leader in custom made kitchen and bathroom design in Canada’s second largest market, features one of the world’s most impressive collection of European-made kitchen and bathrooms cabinetries in its new home developments. Through an exclusive agreement with developer Surge Homes for the Greater Houston area, Tendances Concepts designs and imports will be available solely for Surge Homes homebuyers.

Tendances Concept offers the very latest products from Italy and Germany, presenting a variety of refined classic and modern designs, as well as cabinets built with exceptional precision machinery and modern materials. These products feature world-class aesthetics, durability, and overall value.

The all-inclusive base finishing package of every Surge Homes residence features cabinets from these award-winning Italian and German manufacturers – the same cabinets admired in international European kitchen and bath shows such as EuroCuccina in Milan and Interzum in Cologne.

For those looking for a more classic style, Surge Homes

will also offer options that include Tendances Concept’s renowned wood cabinet collections.

An Array of Choices Curated through Crowdsourcing

Surge Homes’ potential buyers reviewed 80 unique cabinet doors from Tendances Concepts, and then the best-of-the-best were selected for inclusion in the Surge Home special collection. These cabinets represent the materials, patterns, and colors that future Houston homeowners would want. The company also features dozens of different kitchen and bathroom designs, ranging from the most traditional to the most modern. The choices that are offered have been curated from the thousands of visitors to SurgeHomes.com, who were invited to rate their preferences during the builder’s crowdsourcing campaign. Along with other interior finishes materials, visitors to Surge Homes Discovery Center were invited to select their favorite cabinet designs and materials. The feedback from online and in-person visitors allowed Surge Homes to discover trends in design, materials, and colors for interior finishes.

“We were surprised by the reaction of Houstonians towards the very latest European cabinets as we were told the city was very conservative when it comes to interior

Distinct DesignThe Secret Behind Surge Homes’ Unique Interior Design

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design. We found that Houston is really ready for more cosmopolitan and international selections of fine designs. Now that we have a clear idea of what Houstonians want, we will impress them with amazing exclusive designs.” says Denis Cadieux, president and founder of Tendances Concept.

The Design Details

Tendances Concepts will use its large team of designers to design the actual kitchen and bathrooms of all single-family homes, condominiums, and townhouses developed by Surge Homes. Tendances Concepts also offers professionally-designed packages with cabinets and coordinated wood floors, countertops, ceramic tiles, and backsplashes, which creates a harmonious and impressive combination of fine materials. These custom-made finish and design packages also integrate modern appliances.

The packages are functional and beautiful, and are also inspired by the preferences expressed by the thousands of people who participated in Surge Homes interactive development process with the community. The contemporary elegance and sophistication of European cabinetry design has become a coveted style for future homeowners in the Bayou City. High-gloss, matte, wood grain, and full wood finishes are found in the

selections prepared by Tendances Concept specifically for Surge Homes.

Innovative, elegant, and beautiful. These are the qualities Surge Homes buyers will find in their kitchen and bathroom designs and finishes. Thirty-five years of interior design experience, imports of world’s finest materials, and direct input of thousands of future homeowners—this is the way Tendances Concepts, with the help of Surge Homes, redefines true modern design.

An example of the many interior design concepts created over the years by Tendances Concept.

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time, he scooped up dozens of apartment communities and tracks of land.

“Fifteen years ago, Louis and I worked with my family on three large residential master-planned communities around Montreal, Canada, as well as a condominium project in Poland. We also analyzed key cities in the U.S where real estate was booming,” Ben Lemieux explained. “With this experience and knowledge, we agreed that Houston was going to become a booming market, regardless of the temporary fluctuations created by the price of oil.”

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Serge that we believed one day, Houston’s traffic would become painful, the inner city more dynamic, and dense construction like attached townhomes and condominiums of all prices would be in high demand inside the Loop. Serge gave us the go ahead over the phone.”

Four years after they purchased that piece of land, the duo bought a total of five Inner Loop properties for short-term development, and the Lemieux family continued their acquisition strategy for future developments.

“We created and showed new architectural ideas that are better suited for today’s dense developments....”

“I owe a lot to the Lemieux family, and to Ben in particular” adds Louis Conrad. “Without them, I would not have discovered Houston in time, and would not be able to get involved to this extent in one of America’s best real estate markets. I remember the year 2000 as if it was yesterday: Ben asked me to stop by Houston to look at properties for sale. At the time, Houston had virtually no traffic congestion, residential development was almost entirely composed of single-family homes, and many Inner Loop areas like Midtown were far from being the popular places to live as they are today. Nonetheless, Ben and I called Serge from Houston regarding a track of land that we wanted to put under contract. We told

Louis Conrad and Ben Lemieux

Surge Homes partners.

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In 2015, after developing four condominium properties in the city, Ben acquired nine prime land tracks from his family, which he would use to build innovative urban residences with Surge Homes. Lemieux partnered again with his long-time friend and colleague, Conrad. “Predicting years ahead where people will want to live allows a developer to offer prime sites in well-established neighborhoods at competitive prices. This is what Surge Homes is offering today.” Lemieux said. “However, when you purchase land at times when every developer knows where the prime areas in town are, you often have to build in more fringe and upcoming areas in order to keep the prices of your homes reasonable. This didn’t happen to Surge Homes.” Because of the forward-looking vision, Surge Homes features a mix of nine established locations in hotspots such as Upper Kirby, Midtown, The Heights, Museum District, and Spring Branch East.

Paving the Way with Breakthrough DesignsIn order to offer superior value in the marketplace,

acquiring the right land at the right time is an important part of the formula—but it isn’t all of it. A developer must also build the right homes. An even better scenario is to create innovative products that the market wants but can’t find. Armed with this knowledge, the partners of Surge Homes invested significant resources in the first-ever interactive campaign based on crowdsourcing. The developers proposed 10 new communities, and asked the community to dictate exactly what would get built.

“We could have decided what product to offer on each site based on what sells in the market, what the comps revealed, and previous sales—as our industry often does. But we don’t think this is how a builder comes up with true innovation. We believe one has to invest in research and development, and bring forth new home types, floor plans, and interior finishes,” Conrad explained. “We created and showed new architectural ideas that are better suited for today’s dense developments and quest for affordability in good locations. We also presented more traditional homes and finishes. Then, we humbly listened to our future homebuyers and the community before making the final decisions.”

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“We are glad we invested in research because Houston is more advanced than many believe....”

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Surge Homes’ crowdsourcing campaign was carried out through many digital forums, in-person events, and one-on-one discussions so that prospective buyers, neighbors, and community members could provide feedback. Nearly 3,500 Houstonians gave their input. The most interested homebuyers purchased VIP Certificates, which secures their right to select a particular home first when it comes up for sale. The media and blog sites in the city followed the process with interest. Houston Business Journal, in one of its many articles covering Surge Homes communities, qualified the process as “innovative” and “unique,” while a national construction publication asked whether Surge Homes’ crowdsourcing approach might represent “The future of home design?”

Next, the designers and architects adapted the communities and created blueprints and renderings based on the selections of future homebuyers for each site. The designs were released on the Surge Homes website, social media, and via The Surge Factor, the developer’s monthly e-newsletter. This is how nine Surge Homes communities serving a wide array of needs were created and how the

developer is able today to offer single-family homes, townhomes, and condominiums at price points ranging from $150,000 to $1.5M.

With the publicity, media attention, and cross-channel representation, Surge Homes has quickly earned a name as one of Houston’s most ingenious home builders. “Before we got the feedback from the community, many industry experts told us that our most innovative floor plans, exterior design, and interior finishes were too much ahead of the curve for Houston,” Ben Lemieux said. “We are glad we invested in research because Houston is more advanced than many believe. Classic urban residences are still in demand, and while we offer them, the most innovative homes and finishes are the most popular.”

Building In-house for Ultimate Quality Control

Building in desirable, established locations with residences that reflect buyers’ needs is great, but the magic really happens when a perfect product is delivered

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to homebuyers. This is why Surge Homes teamed up with David Modlin, a 26-year real estate veteran who has been named Vice President of Development and Construction. Born and raised in Houston, Modlin knows the local building industry inside out. He has contributed to the construction of more than 3,000 homes in the area during his tenure as Operations Manager or Division President for national builders such as Lennar Homes and Meritage Homes. More recently, as the Owner and President of Modlin Custom Homes, he has built prestigious luxury homes in The Woodlands area.

“David has a proven track record of exceptional quality control” Conrad said. “We are the developer and builder because we want to ensure detail-oriented work, from site acquisition and planning to construction, delivery, and customer service. It’s the Surge Homes way. Our homes are where quality meets design.”

For more information on Surge Homes visit www.surgehomes.com or call (832) 509-2222

David Modlin, V.P. of Development & Construction, in front of one of the many homes he built prior to joining Surge Homes.

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Houston Housing PictureBohlke Consulting Group, LLC

Central

Far North

Northeast

Northwest

South

Southeast

Southwest

West Northwest

West Southwest

-

6,093

4,318

3,320

4,284

2,086

1,450

4,063

3,296

5,223

-

5,879

3,887

3,425

4,267

2,179

1,392

4,041

3,759

4,277

-

3,000

2,500

2,000

1,500

1,000

500

0

Monthly housing permits filed by builders in the Houston Area.

Monthly Housing Permits

Monthly permit activity shows a 13.4% decrease between August 2014 and August 2015. On a rolling 12 month basis, the August total of 33,122 is down 1,019 permits from 34,141 units compared to the same time period a year ago. This equates to a rolling percentage change of -3.0%.

Aug 2014Sep 2014Oct 2014Nov 2014Dec 2014Jan 2015Feb 2015Mar 2015Apr 2015May 2015June 2015July 2015Aug 2015Aug 14 v. Aug 15

2,7632,8912,8742,4052,4392,6412,6242,9603,2292,8473,0852,7352,392-13.4%

MARKET

GRAND TOTAL 34,141 33,122

-3.5%

-10.0%

3.2%

-0.4%

-4.5%

-4.0%

-0.5%

14.0%

-18.1%

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Sep 13 -Aug 14 Sep 14 - Aug 15

-3.0%

MAR. 2015

Dec. 2014

Jan. 2015

Feb. 2015

- -ANNUAL % CHANGE

AUG. 2014

SEP. 2014

OCT. 2014

NOV. 2014

May. 2015

Apr. 2015

June 2015

July 2015

Aug. 2015

The Metropolitan Builder5161 San Felipe Street #320Houston, Texas 77056