Multi-billion dollar construction company Katerra is shutting down, officials with Ensemble Investments and S3 Development confirmed Wednesday. 

Blake Smith, a managing partner at S3 Development, says Katerra is closing its doors, creating a headache for local developers. 

S3 Development and Ensemble Investment are taking over the two projects Katerra had in the works in Reno, one being an apartment building on 4th Street and McCarran. The other project has not broken ground yet. 

Principal Tyson Sayles of Ensemble Investment says they were surprised to receive phone calls Tuesday from at least 30 subcontractors and employees on the site about Katerra pulling out of the project. 

Sayles says they haven't officially heard from Katerra about the closing. "It's really an unprecedented action," Sayles continued. 

"A multi billion dollar company that just said it's closing its doors," Smith said. "I don't think they could ever reopen after what they're doing right now." 

Currently, the first two buildings of the apartment complex are complete, and officials are still hoping to move residents in on June 20. 

"It's very disappointing what they are doing," Smith said. He says the goal is to keep everyone working and keep everyone paid. "We are getting copies of all the paperwork and all the information and sitting down and meeting with them and taking over the job to get it finished," Smith said. 

"This is a challenging bump in the road," Sayles continued.

Officials say they are having crews work overtime and bringing in extra crews and doing whatever is possible to make the project go forward. 

Â