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KBS Builders Wins Two Maine Projects Totaling $4.6 Million
STRRStar Equity (STRR) GlobeNewswire News Room·2024-10-02 12:30

Core Viewpoint - Star Equity Holdings, Inc. announced two contracts totaling 4.6millionforthemanufactureof40modulesaimedatconstructingcottagesandaffordablehousingunitsinMaine,reflectingagrowingdemandfornewconstructionintheregion[1][2][3].CompanyOverview−StarEquityHoldings,Inc.isadiversifiedholdingcompanywithtwomaindivisions:BuildingSolutionsandInvestments[4].−TheBuildingSolutionsdivisionincludesmodularbuildingmanufacturing,structuralwallpanelandwoodfoundationmanufacturing,andglue−laminatedtimbermanufacturing[5].−TheInvestmentsdivisionmanagesandfinancesthecompany′srealestateassetsandinvestmentpositionsinbothprivateandpubliccompanies[6].ContractDetails−Thefirstcontract,valuedat4.6 million for the manufacture of 40 modules aimed at constructing cottages and affordable housing units in Maine, reflecting a growing demand for new construction in the region [1][2][3]. Company Overview - Star Equity Holdings, Inc. is a diversified holding company with two main divisions: Building Solutions and Investments [4]. - The Building Solutions division includes modular building manufacturing, structural wall panel and wood foundation manufacturing, and glue-laminated timber manufacturing [5]. - The Investments division manages and finances the company's real estate assets and investment positions in both private and public companies [6]. Contract Details - The first contract, valued at 3.0 million, involves the manufacture of 32 modules for 15 cottages in Northeast Harbor, Maine, with manufacturing starting in September and expected delivery by December, aiming for occupancy by Spring 2025 [1]. - The second contract, worth $1.6 million, is for 8 modules for two multi-story buildings comprising 16 affordable housing units in Newcastle, Maine, with manufacturing expected to begin in October and delivery by December, also targeting Spring 2025 for occupancy [2]. Market Outlook - The CEO of Star noted that the contracts highlight KBS Builders' reputation as a leading modular manufacturer in Maine, with an increase in demand for new construction in New England and the Northeast contributing to a growing backlog of orders [3]. - The company is optimistic about the impact of recent interest rate cuts on the demand for new construction projects, anticipating gradual growth in the coming months [3].