“Commercial development and construction is a maze of what ifs and how-to’s and quite honestly, it can become an immense challenge.” This admission on Arnold Construction’s Web site proves their understanding of the business; and they rise far above the challenges. Arnold Construction, as a part of the Arnold Family Corporation, was founded in 1995 and is headquartered in Columbia, South Carolina. The company serves the entire state of South Carolina and areas of North Carolina, with plans to move into parts of Georgia in 2010. With their impressive revenue growth to $27.3 million and 25 employees in 2008, Arnold Construction serves the commercial and multi-family sectors. Their diversified projects also include multi-family renovations and federal and state government backed projects. Arnold Family Corporation Chairman, Norman J. Arnold, began his career in the liquor distribution industry while owning some real estate on the side. Ben Arnold, Norman’s son and president of Arnold Construction, graduated from the University of Florida with the desire to live and work in a bigger city. He moved to Atlanta in 1989 with the intent of working in the commercial real estate industry. At that time, banks were shutting down their real estate lending departments. As a result, Ben decided to enter the industry through property tax consulting. After working for a national property tax consulting firm for one year, Ben started his own firm out of his house in Atlanta. By the end of 1992, Ben had moved the business to Columbia, South Carolina and had $500 million in assessed value under appeal in the Carolinas and Georgia. The property tax consulting business taught Ben how to appraise property and how to negotiate low tax values for his clients. Partnering with his father, the two began Arnold Construction to “purchase, renovate and manage out-dated apartments,” said Ben. Buying and renovating for themselves, the Arnold’s branched off into office, retail, light industrial, and several mixed-use projects throughout Columbia, which has since become their specialty. Arnold Construction manages all aspects of the construction process, from site selection through construction, including critical path scheduling, value engineering and cost analysis. The Intricacies Arnold Construction’s project variety exemplifies the company’s expertise and ability to rise to any challenge, completing truly intricate and complicated mixed-use projects. “We have been working in downtown Columbia for 15 years,” said Ben. Their work in redeveloping four city blocks in Columbia’s Vista district is one such example, in which they turned several warehouse buildings and vacant lots into mixed-use entertainment developments with bars, clubs, multi-family buildings, offices and restaurants. The company recently purchased the Lake Murray Marina with plans to develop the upland into an upscale residential community. Located on a 48,000-acre lake, the community will offer 216 new resort style apartments. Arnold Construction used design-build systems to develop Lake Carolina’s Town Center; a 22 acre mixed-use development within a 1,700 acre master planned community. Arnold constructed five, two-to three-story buildings that contain offices, retail, and restaurants on the ground floor and office and multi-family space on the upper floors. The neo-traditional architecture with varying facades gives the suburban development “a slice of Small Town USA” for Lake Carolina residents with easy access to shops, restaurants, medical and professional services in a pedestrian-friendly environment. Award-Winning Growth In 2008, Arnold Construction was named the 10th Fastest Growing Company in South Carolina by the South Carolina State of Commerce for the 2006 to 2007 calendar year. With an even more impressive year in 2008 with a growth rate of 245 percent, Arnold Construction is certainly not slowing down. The company is, of course, not immune to the slowing economy. So, what has made them so successful? “Being in the right product type at the right time is important,” reflected Ben, telling how he developed and sold condominiums in 2005 and 2006, shortly before the mortgage crisis. “Establishing relationships with developers in the right sectors such as elderly housing, multi-family and government, as well as being in the right place at the right time makes all the difference.” Managing their supply chain has also proven extremely important, particularly with multi-family renovations. “It is critical to have bulk buying capabilities and to form relationships with vendors that can supply goods in a timely manner,” said Ben. “We decide who to use based on reputation, quality, and cost; in that order.” Exploring New Options The City of Columbia is positioning itself to become the epicenter for hydrogen power technology. Ben Arnold sits on the board of EngenuitySC, an organization compromised of business and industry leaders focused on the knowledge-based economy in the Columbia, South Carolina region. The board’s goal is to encourage ideas, technology, research and public policy in an effort to help companies provide access to start-up investment capital. Arnold Construction has proposed to construct the first hydrogen powered commercial building in Columbia; however the construction and operating costs have not been finalized. Ben hopes that the company will be actively involved with these “cutting edge” projects when the economy turns around. Prepared “I have been expecting this slowdown for two years. That’s why I got out of the condominium business a few years ago,” said Ben about the current economic freefall. “We are just waiting for the right redevelopment opportunities…obtaining financing is difficult, so you have to be liquid if you want to play.” The development side of the business has slowed which has diverted Arnold Construction’s energy to renovation projects, particularly for affordable housing sites throughout South Carolina and into North Carolina. Their Marina project will be financed by the US Department of Housing and Urban Development, with a safe, low-risk loan and will start construction in 2010. “We aren’t looking to do new developments in 2009,” said Ben. The macro problems of the US economy is concerning. “Rising unemployment continues to negatively impact consumer spending which hurts retail and industrial real estate. Offices will experience negative absorption as layoffs result in less demand for space,” said Ben. “The rapidly growing green building trend, while costly on the front end, is extremely important for sustainability of America’s future. It is a lot to keep up with but we are working to stay ahead of the curve with the green movement,” said Ben. Despite the ever-present economic crisis that is holding back and even undoing growth in all sectors of today’s global marketplace, Arnold Construction plans to continue with their outstanding growth. “Surround yourself with the right people, have a balanced life, read, and strive to learn as much as you can.” Ben’s philosophy has served him and his business well. Grounded in his values and well-rounded life, Arnold Construction is guaranteed to continue making their mark on this great American landscape. building industry and are involved in many trade organizations and committees. Joe Bohm currently sits on the board and serves as treasurer of the Washington Architectural Foundation, a non-profit organization affiliated with the American Institute of Architects. He is also on the board of the Institute of Classical Architecture and the company has representatives serving as members of numerous other architecture and building trade organizations including the local chapters of American Institute of Architects, the Green Building Council, Associated Builders & Contractors, the National Federation of Independent Business, the National Association of Remodeling Industry (NARI), the Trust in Small Business PAC, the National Safety Council, the Architectural Woodwork Institute, and the American Society of Interior Designers. Horizon Builders is fortunate to have a level of stability that other companies lack, given the affluence in the Washington, DC area that the company serves. Joe is grateful for this strategic positioning, and hopes to expand geographically over the next five years, slowly but surely. He’d like to take on projects further south into Virginia, and to consider the market in Baltimore, Maryland. In the meantime, the exacting standards and the stellar reputation of Horizon Builders hold the company in good stead for the foreseeable future. These amenities are just the beginning for US Pacific Development’s new Vanguard Loft project in the center of Honolulu. With 32 units, 23 different floor plans, ranging between 835 and 2,274 square feet of living space, these loft condominiums are truly a dream come true. This new residential creation is due to the company’s forward thinking which has also put them among the best in their industry. US Pacific was started in 2004 by Bill and Chris Deuchar, Chris being the current president. Bill has over 30 years of experience in construction and development business in Hawaii while Chris had worked in the retail development business in Phoenix, Arizona. The company focuses on mixed use and multi-family development in both the residential and resort sectors of Hawaii specializing on urban-infill, in Honolulu. Projects US Pacific is a trend-setter. This is exactly what they have done with The Vanguard Lofts in central Honolulu. The company is renovating and expanding the old National Cash Register (NCR) office building into a modern mixed-use urban loft development. Original Architect Vladimir Ossipoff, who is revered for bringing an international style of architecture to Hawaii, has also left his mark on the Lofts. Though his influence began 1932, his legacy lives on with the Vanguard Lofts as he was responsible for the expansion of the original Von Hamm-Young building (later purchased by NCR) that is now a centerpiece of this project. With 32 residential lofts and 3,470 square feet of commercial retail space, this is the first such renovation in Honolulu’s history. The Vanguard Lofts will also include a new six-story building that will connect to the original NCR building. Symbolizing Hawaii’s progressive living and respect for the history of the building, The Vanguard Lofts will also provide their residents spacious living with ceiling heights between nine and 16 feet. The Lofts are perfect for entertaining with their private urban outdoor retreat areas, resident bar, and pool cabanas. Scheduled to be complete in May 2009, The Lofts are certain to set a model for a new kind of living in Honolulu: blending the new with the Historic. “We always work to make things better through design, both in terms of quality of product and details of the architecture,” says Chris. In addition to The Vanguard Lofts, US Pacific is also working on several other developments. The first is a 95-unit project called Skyline Honolulu on the slopes of the Punchbowl, which will be similar to The Vanguard Lofts. The four-story mid-rise building sits on a 1.62-acre property and will feature a pool, recreation room, a community roof-top deck, and underground parking. Punchbowl, also called Pu’owaina Crater, was known as the ‘Hill of Sacrifice’ to the ancient Hawaiians. It is also the location of the National Memorial Cemetery of the Pacific, which was created in 1949 as memorial for veterans that lost their lives in the Pearl Harbor attack in 1941. A resort sector project that US Pacific is working on is The Royal Palms at Poipu Beach. The 22-acre property includes 164 for sale units in six buildings, recreation building and two swimming pools. This Resort Condominium Development is in the Poipu Beach Resort area on the southern shore of the Island of Kaua’i, also known as The Garden Isle. It is conveniently located across from the Poipu Shopping Village with shops and restaurants, and adjacent to the Robert Trent Jones Jr. designed Kiahuna Championship Golf Course. The resort condominium building will “embrace resort-style living” a Resort-style pool with water slides and sandy beach, a recreation area with a gym, a game room, and an outdoor dining and bar area are just some of the community amenities this new development will provide. A recent renovation project for US Pacific is The Windsor in Waikiki, Honolulu. This project converted the 612-room Hobron Waikiki Hotel into a 180-unit condominium development. The total building renovation stripped the hotel to its skeleton to provide for the new amenities and offerings of The Windsor. The hotel operated during the planning and permitting stages but was closed in January 2003 and reopened with the completed renovations in February of 2004. Total sales for this project were approximately $80 million dollars. Economics and Looking Ahead For US Pacific, their niche market in Hawaii has helped insulate them from the economic crisis. They are also very scrupulous about managing their supply chain and maintaining their relationships with their subcontractors: “whether times are good or bad you’ve got to manage your projects and team members day to day” added Deuchar. As a leader in their market of multifamily and mixed use development in Hawaii, US Pacific is still looking to expand. In the next five years, US Pacific Development hopes to begin projects in California and Arizona. Their goal is to continue creating unique and interesting projects, while strengthening their niche in the state of Hawaii. “We’re in a good spot right now, and don’t want to grow too fast,” says Chris.