New Construction Business Opportunities in the Multifamily Sector

The multifamily sector is navigating a rare convergence of market pressures. From tariff uncertainty to a sharp decline in housing starts from peak levels, today's environment demands both discipline and clarity. While volatility often pushes firms into a "wait and see" posture, Middleburg is taking a different approach—one grounded in data, alignment, and decisive execution.

For us, executing on new construction opportunities isn't just about finding the next site. It's about understanding real costs, maintaining transparency across partners, and executing with teams fully aligned on the mission.

The Competitive Edge: A Collaborative Approach

One of Middleburg's greatest strengths is our vertically integrated platform. Investment, development, construction, and property management operate under one umbrella. That structure allows us to make research-driven decisions that are difficult to replicate in siloed organizations.

We focus on underserved markets with strong demand for attainable housing. That means studying demographic trends, migration patterns, and emerging employment centers—especially where jobs are moving into suburban and secondary markets. We're tracking growth tied to data centers, advanced manufacturing, and other employment drivers across markets such as Nashville, Texas, and the broader Southeast.

By aligning our construction capabilities with proprietary research, we can mobilize early—often ahead of competitors—while remaining disciplined in risk and execution.

Navigating Cost Volatility and Supply Chain Risks

In today's environment, understanding a project's financials is critical. Construction costs can be volatile, and tariff risk remains in the headlines.

• Over the last 18 months, we have seen construction pricing decline as starts have slowed. At the same time, uncertainty around tariffs continues to create volatility. Our approach is built around transparency and risk mitigation.
• We diversify our supply chains by working with manufacturers and distributors that maintain multiple global sourcing options. If policy shifts in one region, we can pivot without impacting schedules. As a result, none of our current projects are delayed due to supply chain disruptions.
• We also rely on real-time pricing data. By producing 100+ estimates annually and executing a high volume of Guaranteed Maximum Price (GMP) contracts, we have a clear, current understanding of the actual cost to build. That allows us to provide our partners with accurate, transparent pricing and make informed decisions quickly.

The Co-GP Model: Expanding Our Footprint

A key driver of our growth has been expanding into a Co-General Partner (Co-GP) model. In this structure, we partner with third-party developers who lead the project, while Middleburg Construction serves as the builder.

This model creates value for multifamily developers in several ways.

• Shared Expertise: We bring our historical cost data, transparency, and best practices to partner teams, acting as a true extension of their organization.
• Project Viability: In many cases, that discipline helps projects move forward that might otherwise stall due to budget constraints.
• Market Presence: At the same time, increasing our volume keeps our pricing data up to date and strengthens relationships with subcontractors. Those "reps" in the market help ensure we stay competitive and well-positioned across cycles.

Addressing Key Housing Sector Issues

Our construction strategy is closely tied to the broader issues shaping the housing sector.

Affordability and Attainability

The demand for attainable housing continues to outpace supply, and it's not going away anytime soon.

Sustainability and Innovation

Environmental responsibility is embedded in how we build. We track waste, prioritize low-VOC materials, and partner with manufacturers that share our values. In select markets, we use panelization to reduce on-site waste and improve efficiency. Innovation also extends to the resident experience. We focus on technology that works, avoiding “beta” solutions in favor of proven enhancements that meaningfully improve day-to-day living.

Labor and Workforce

While we haven't experienced the severe labor shortages often cited in headlines, the aging skilled-trades workforce is a real, long-term issue. We address this by building strong, lasting relationships with our subcontracting partners. When trades are treated as true partners, it leads to better quality, stronger accountability, and more reliable execution.

Ready for the Future: Leveraging Construction Management

The window to get ahead is now. Projects that break ground today are positioned to deliver inventory as the market rebounds over the next two to three years.

By staying focused on collaboration, transparency, and execution, we're not just building apartments—we're building a resilient platform that performs across market cycles.