By Jenna Abbott, Executive Director
Early the morning of November 10, I received an alert from Patrick Stelmach, a CCAH member and local broker with CBRE in Sacramento. Patrick knows that we are always interested in innovative things our members are doing so he wanted to let me know that the installation of Sacramento Studios Phase 2 was underway. This project is the first fully modular construction project to go up on the GRID in downtown Sacramento and watching the modules moved into position by crane was a real sight to behold. While interior work remains to fully complete the project, full installation of the five stories of modules took under four days.
This project reflects a growing trend toward modular construction as a solution to speed, cost, and sustainability challenges. A partnership between Danco Group as the developer and The Pacific Companies as the modular construction partner, Sacramento Studios Phase 2 is a transformative affordable housing development in the heart of the city that combines efficiency with quality, ensuring that Sacramento residents have access to safe, affordable housing on an accelerated timeline.
Chris Dart, President of Danco, explained “Modular was the right choice for Sacramento Studios Phase 2 because it allows us to deliver high-quality housing faster and at a lower cost. In a market where time and affordability are critical, modular construction helps us meet those needs without compromising on design or livability.”
So, why are we so excited about this particular project? Frankly, it’s because modular construction is revolutionizing the way we build affordable housing. By fabricating units off-site and assembling them on location, developers can reduce construction time, lower costs, maintain quality, and create sustainability. Modular projects often finish 30–50% faster than traditional builds thanks to simultaneous site prep, factory production and controlled factory environments that minimize waste and labor inefficiencies and can reduce overall project costs by up to 30%. This kind of precision manufacturing ensures consistency and durability, while reducing weather-related delays and material damage meaning modular construction often generates less waste while protecting materials from exposure.
Caleb Roope, CEO of The Pacific Companies told us that “Modular construction allows the delivery of high-quality housing with speed and precision. For Sacramento Studios Phase 2, we were able to install a multi-level building in under four days—a timeline that would be unthinkable with traditional methods. The efficiency of building in a controlled environment combined with the ability to rapidly assemble on-site, makes modular the ideal solution for high-volume affordable housing.“
Cost and Timeline Comparison: Modular vs. Traditional
| Factor | Modular Construction | Traditional Construction |
|---|---|---|
| Build Time | 12–14 weeks (urban/rural) | 6–12 months (urban), 8–18 months (rural) |
| Cost Savings | 15–30% lower overall | Higher risk of overruns due to delays and site conditions |
| Quality Control | Factory precision, fewer defects | Based on labor and weather |
| Sustainability | 30–50% less material waste | Higher waste and emissions |
Sacramento Studios Phase 2 is more than a development—it’s a model for how California can continue to innovate to tackle its housing shortage. By embracing modular construction, developers like Danco and The Pacific Companies are proving that speed and affordability can go hand in hand. We are proud to have them as members.