Zeta Communities opens Sacramento hub

ZETA Communities' model home.

Despite supply chain interruptions in the modular building industry, attributed in large part to the recession, one San Francisco builder is setting a new foundation. ZETA Communities, known for producing net-zero energy multifamily affordable housing and mixed-use structures for sustainable communities, announced earlier this fall that it purchased and re-opened a shuttered precision housing-manufacturing plant in Sacramento. The 91,000-square-foot facility is capable of producing between 400 and 500 units each year. ZETA, which was founded in 2007, says it plans to focus on urban infill, transit-oriented development, public land development and educational campuses.

The purchase of its first factory comes at a difficult time in the real estate market, and for the pre-fab market in particular. Even companies with plenty of orders have fallen victim in recent months to the recession and credit crunch. That is what happened to Michelle Kaufmann’s MKDesigns earlier this year. The creator of a line of line of popular, “thoughtfully designed,” energy-efficient modular homes was forced to close her business when factories she partnered with were shuttered and financing fell through. “With pre-fab in particular, it is important to have continuous flow through,” she told an audience at West Coast Green in October. “It is critical because it is an assembly line and a hole is tough for the factory to maintain.”

ZETA's demonstration home reportedly uses 40 percent to 60 percent less energy than standard modular construction. The remaining energy demand is met through on-site renewables that come with the home, says ZETA's vice president of business operation, Shilpa Sankaran. It is certified to the Platinum level of the Leadership in Energy and Environmental Development (LEED) rating system, and has a 240 GreenPoint rating, Sankaran says. Building prices were not disclosed by the company.

ZETA, which largely focused on R&D for its first year of operation, in 2009 built a demonstration home in Oakland, Calif. Sankaran says over the next five to seven years, the company plans to open 15 additional factories around the country. The Sacramento factory is expected to fill orders within a 300-mile radius.