Brandon Donnelly — Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly. — Page 681

Camera: Fujifilm X-T3, 23mm, f/2.0

Fred Wilson (venture capitalist) and Joanne Wilson (also an investor) have been working on a passive house apartment building in Brooklyn for the last five years. Their development company is called Frame Home. And this past week they received a pretty great Christmas gift in the form of a Temporary Certificate of Occupancy from NYC Buildings.

At 5 storeys and with only 10 two-bedroom units, you could classify this building as the kind "missing middle" housing that gets so much air time here in Toronto. And so not only have they managed to build relatively small, but they've done it using passive house design principles.

Here are some of the apartment building's features:

• Cross-laminated timber (CLT) structure

• Passive house design approach

• Triple-pane windows

• Interior polished and insulated concrete walls (presumably to act as a thermal mass to moderate heating/cooling throughout the year)

• Solar panels installed on the upper facade and roof (passive house design should, in theory, allow these to supply a big chunk of the building's energy needs)

• No fossil fuels used throughout the building -- everything is electrical

• Fully sub-metered units

• Outdoor circulation spaces/stairs, providing access to a shared rooftop courtyard (I'm assuming these also serve as required egress for the building)

• Dedicated elevator entrance for every suite (i.e. no interior circulation/corridor spaces)

• Composting facilities within the building

• Bike room connected to the ground-floor lobby

There's also a co-working and community space planned for the ground floor called " Framework ." Interestingly enough, they have already responded to the current pandemic. Instead of open-air desks, you rent fully enclosed 8' x 8' pods that are sound-proofed and come with their own HVAC systems.

Congratulations Fred and Joanne on such an exciting and pioneering project. (I would love to see the development pro forma!) If you'd like to learn more about Frame 283, here is their website and here is a profile that the New York Times did on the project back in January. Building with CLT is apparently prohibited in NYC. Frame 283 got an exemption.

https://twitter.com/10kdiver/status/1340366631365562370?s=20

I came across the above Twitter thread last night before bed and I thought it was great. It's about the importance of thinking exponentially, as opposed to linearly, when it comes to finance and investing.

In it, the author provides a quick rule of thumb to help reframe our mind when it comes to compounding. It's called the "rule of 72" and it works like this.

To calculate the approximate number of years to double your money, simply take 72 and divide it by the annualized rate of return (%). For example, if you had an annualized rate of return of 10%, this rule of thumb would tell you that you're going to need 7.2 years to double your money.

If the annualized rate of return were to increase to 18%, it would now only take you 4 years to double your money. Of course, this rule of thumb is an approximation. It only really works within a certain band of returns.

If the annualized rate of return were 100%, this formula would spit out 0.72 years, whereas an annualized rate of return of 100% actually means that you're doubling your money in the span of one year.

It's a rule of thumb. The reality is that compound returns are incredibly powerful over the long-run, not only for finance and investing, but for life in general. Worthwhile things take time. If you've got the patience and discipline, the long-run curve ends up looking pretty sweet.