June 2023
In my prior life at a public accounting firm, I handled real estate development and construction clients, among other industries. None of my real estate clients owned construction companies, and only a few of my construction clients developed their own real estate. While working at McGuire and Hester and seeing jobs we had with various real estate developers, hearing field management questioning the over-engineering, and the typical scratching of the head, “Why are they having us do that,” we asked ourselves, “Why not us? Why don’t we start developing our own real estate projects?”
The benefits of doing our own real estate developments were encouraging. We can use our own projects to fill in schedules to keep our crews more fully employed; we can increase our equipment utilization if done right; we can make above-market returns, and most rewarding, we can take pride in our work and do it BETTER from planning, investing and build out.
In the last decade, starting small and ramping up to larger projects, we have invested in real estate projects worth hundreds of millions. On most of these projects, we were a minority partner, and so all construction activities had to be competitively bid. The opportunity to GIVE BACK and use our own crews came on projects where we were the majority owner. We have completed two of these projects using our own crews to complete the work.
At our Alameda Headquarters, we performed all the grading, paving, utilities, concrete, and landscape. Our beautiful office is 100% owned by Circa. The next project was in Lafayette, working on nine residential lots on a hillside called The Nines. All three companies worked on this project, including grading, paving, utilities, and concrete. The Nines was sold to a home developer after we completed our work. And now, after a lengthy permitting process, we finally started on our project in Pittsburg, where we again will use all three companies to perform everything we collectively do; grading, paving, concrete, utilities, and landscape.
I want to thank Lincoln Morrill, Randy Somerday, Pat Boal, and Patrick Trollip for their estimating efforts and James Alderman for taking charge of project management. The completed 12.51-acre property at 2625 Pittsburg Antioch Hwy, Pittsburg, will have a sales office, wash station, propane supply, vacuum station, and approximately 300 solar-covered RV and Boat storage units. Solar panels generating 3 Megawatt of electricity will be used for the covered parking that will be sold to PG&E over a 20-year power purchase agreement.
We collectively have an incredible opportunity, especially when we work together. Our real estate development activity within Circa was only possible from funds McGuire and Hester contributed and profits we earned. Now, it’s Circa’s time to give back with above-market returns and hire McGuire and Hester, Casey Fogli, and CF&T Concrete Pumping to work on our real estate projects. Each of us has a responsibility and a financial reward when we look out for not only the company we work for, but for our related companies as well. I thank Bruce Daseking and many of you for your business development efforts. Today, I would also like to acknowledge the efforts of Art Fink. Art manages CFT Concrete Pumping; he is always knocking on the doors of clients trying to drum up business for CF&T, but also takes the opportunity to introduce the other capabilities that McGuire and Hester and obviously Casey Fogli have to offer to existing and prospective clients.
We all need to wear that business development hat when talking to clients. Many clients don’t realize everything that our family of companies does. We are the “one-stop shop” contractor. Take advantage whenever you can to inform our clients and potential clients exactly what our collective family of companies can offer them. Do not take it for granted that they know; you will be surprised.