Wednesday, October 30, 2019

When is Modular Home Factory NOT a Modular Home Factory?

Recently I’ve been following a new California modular home manufacturer that boasts having a “Mega Factory” in Hemet, CA. Plenty of press has been given this company but when you take a closer look at their factory, it isn’t really a modular home factory, it’s a Skyline Homes manufactured home factory in CA.

S2A Modular, the company that only shows a rendering of its Mega Factory on their website but doesn’t appear to actually have a factory on the land they applied to the City of Hemet, CA government to build on.

Brian Kuzdas, CEO and Co-founder of S2A Modular tells the story of his company on a video on their website but the man standing inside “their” factory appears to be superimposed over a picture of inside a manufactured (HUD) factory. He nevers walks you through the factory in this video and later in the video (4:54) there are people standing in front of a banner that clearly reads “SKYLINE”.

Also featured on their website is an entire section called #GreenLuxHome with this quote:

“The first electrically self-sustaining, custom luxury homes are changing the way the world understands residential buildings – creating a new standard in stylish design, construction speed, tailor-made features with high-end materials, “surplus energy income” and smart-connected living.”

Another section says:

“Providing turnkey solutions that allow corporations big and small to develop their projects quickly, we’re eradicating the cost-efficiency challenges associated with traditional brick and mortar construction that requires multiple partners, vendors and longer timelines (meaning more money). S²A Modular keeps it all under one roof in our 100,000-plus Sq. Ft. MegaFactory.

The following quote is from a December 12, 2018 article in Builder by Mary Salmonsen:

"The company will break ground on its 100,000+ Square Foot Mega Factory in Menifee, Calif. in the next few months, with full operation expected in mid-2019."

But the Hemet, CA Project Application Information filed March 5, 2019 says the factory will be 210,000 sq ft. I know, this is starting to get a little confusing to me too.

It appears that no factory has ever been built on the land they applied for zoning earlier this year. In fact, I just called a business across the street from that vacant land and they told me nothing is there, only a housing development located behind it.

Now let’s take a closer look at what they are actually doing right now. Since 2018, about all I can find out about them are sale seminar after sale seminar with many of the seminar dates showing a factory producing modular homes unlike the manufactured factory used as a background in their video.

S2A Modular is conducting a seminar on November 21, 2018 to teach investors all about modular construction integrated with renewable energy smart home technology.

The seminar will break down the differences between the "traditional stick built" method of construction versus the "modular" method. You'll learn the advantages and disadvantages of the modular process along with how we've used TESLA smart home products to create net zero in a home.

Who is this seminar for?

1. The buyer who is looking to build a new home and would like to get the process done 30%-40% faster at a cost savings of 10%-20% of the original stick built method while building a stronger product.

2. The consumer that wants to learn about "Renewable Energy" and how we've used TESLA solar roof tiles, the TESLA powerwall home battery and the TESLA smart home system to operate everything inside the home at net zero (NZEB), meaning the total amount of energy used by the building on an annual basis is roughly equal to the amount of renewable energy created on the site. In plain English, this means that your electric and heat bill comes out to $0 per month.

3. The "Developer" that wants to build a community or subdivision of hundreds of homes and/or the developer that wants to build apartment or hotel doors quicker, stronger and for less money.

4. The investor/developer/buyer that wants to be part of owning a modular construction company and factory because they are tired of not having the control of construction costs and the time it takes to get a new home, apartment building or hotel built.

5. The strategic investor who wants to partner with a company that has the capability to build their product faster, cheaper and stronger through the modular process.

Speakers: About the Speaker Brian Kuzdas started his real estate career in 1985 as a commercial real estate agent in Chicago, Illinois. After representing buyers and sellers for 12 years, Brian bought his first apartment building in 1997 with the intentions to convert it into condominiums. After the success of that first apartment conversion, over the next ten years (1998-2007), Brian bought 4,000+ apartments and converted all of them to condos. When the recession hit in 2007, Brian shifted to helping banks auction their foreclosed inventory (REOs). By 2010, Brian bought the domain "" (REA) and expanded the company to fourteen states while moving the corporate office to Palo Alto, CA in 2012. In 2017, Brian opened an acquisition division to purchase $1Billion in wholesale property over the next five years to teardown and construct modular TESLA Smart homes throughout all of California. To date, Brian has purchased a total of more than $350M in real estate and disposed in excess of $1 Billion.

I’m sure all the media attention they have gotten is real because some of the biggest names in the industry are mentioned on their website as partners with them, like Tesla, LG, Mitsubishi and others, but has anyone actually seen anything they’ve built or toured their “Mega Factory”?

If you have, please leave a comment where the factory is actually located.


Anonymous said...

It's CA. What else would you expect. Sounds a little phony to me

Robert Canfield said...

A factory is not a factory when all they seem to be doing is taking people's money at each of those seminars. If they soon don't build a factory it just might give modular a black eye.

Dusty Noles said...

Certainly something fishy is going on here. Definitely going to research this more. The video you are referring to gave me a good chuckle, especially as a content creator, lol! Great post Gary!

Bill Hart said...

Coach I "worked" that same areas ie Hemet and/or Menifee some years and years ago on behalf of the then startup quarterly activities reports for Steve Johnson and the Meyers (Group) Research. Suggest you contact Steve perhaps on Linkedin, as he is now an independent housing real estate analyst and/or Meyers Research and ask em whats up?..I know right now Meyers has boots on the ground, current and historical permitting data ..and..specialized field people there, plus they have very very current aerials and info available ..immediately... thru their RONDA system. How so? Why am I cock sure, I started an earlier version we then called REDIA. They both will KNOW preciously whats going on, believe me ..believe me, SCA is their oyster! Bill

Lance Lowrey said...
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