A Nation-wide Lack of Affordable Housing
"The United States has a housing shortage of 6.8 million homes and that gap has increased by a million homes in the last 3 years.“
The Future of Midwestern
Modular Manufacturing
George Modular Solutions (GMS) and the Minneapolis Manufacturing Plant is the brainchild of Devean George, a well-known developer. His idea was for an innovative solution to his development projects, that would also positively impact his hometown of Northern Minneapolis by providing housing and jobs to the local community.
This Modular Manufacturing Facility will build components for commercial building projects that will innovate the construction process and help solve the nation-wide affordable housing crisis. With Projects already on order throughout the Midwest and Canada (Homes, Apartments, Hotels, Offices, etc.), this facility will create living space modules, building products and components in a controlled factory environment – sheltered from the open-air environment. These components will then be hauled to project sites for reassembly, helping to reduce costs, decrease construction time and improve quality.
It’s a nearly $40M dollar project with overwhelming support from the City of Minneapolis, The Mayor’s Office; The State of Minnesota and local philanthropies eager to upgrade the city’s reputation, following the George Floyd protests. With government expedites and funding from New Market Tax Credits this facility will be an integral part of the cities resolve and position as the future hub for a revolution in building and construction innovation.
Benefits of Steel Modular Construction
• Ability to Design Taller Buildings and Add Density
• Speed to Market – 30% to 50% Reduction in Construction Time
• Consistent Quality – Manufacture in Climate Controlled Environment
• Less Disruption – Shorter and Quieter Worksites
The Progress & Commitments
82,972 sqft Facility Acquired March 2024
• Investments into buildout and equipment in progress
• 300 jobs by year 3
• $2MM Support from Minneapolis City
• Council (Nov 2022) for this project
• $6.54MM New Market Tax Credits
• $8.6MM from Sunrise Bank
• $7.5M from Commonwealth Genesis
Present Dilemma
Conventional Construction:
A shortage of skilled trades, supply chain disruptions, and inefficient resource use has resulted in significant and unpredictable project timelines and budgets.
Housing Crisis:
The housing crisis in Minnesota and throughout the country is marked by a severe shortage of affordable housing, rising home prices and accessibility disparities, presenting significant challenges for individuals and families.
Unemployment/Under-employment:
High unemployment rates, particularly evident in places like North Minneapolis with over 25% of residents living below the federal poverty line, contribute to socio-economic challenges,including limited access to education, healthcare, and an overall diminished community well-being.
Traditional Construction Can Not Meet Demand
“Construction is the next frontier for innovation, and modular is leading the way”
-Eric Jacobs
Chief Development Officer,
Marriot International
Marriot 2024-2026 Pipeline for all hotel brands: 70 Hotels / 7000 Rooms = 7300 Modular Units
Upper Harbor Terminal Project:
• 19.5 Acre Riverfront Development
• 2021 City Approved & In Construction
• 436 Housing Units
• 200 Jobs
• 127,000 sqft Business Park
Opportunity for Investors Land Holding with Lease Payments
Investors receive guaranteed lease payments of $100,000 per month, tied to the land where the factory building is located, until 100% of their investment is returned ($1.2MM per year). GMS guarantees the lease for 7 years and renews every 7 years. After all investment is returned, the investor receives an annualized preferred return of either 12% ( for $1.5MM investment) or 14% (for $3MM investment).
Terms for Investor Preferred Equity:
Investment Minimum: $1.5MM for 12% preferred return (25% IRR).
Each $3.0MM tranche earns 14% Up to $6MM total (29% IRR).
Let’s Build Something That Matters.
Looking to invest in projects that create real change? Partner with The Phoenix Group and be part of shaping stronger communities—while earning meaningful returns.
Reach out today and discover how your investment can drive both impact and growth.