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Gates McVey’s Commercial Clients Benefit from Integrated Services, Corporate Diversity

published on March,30,2007

By Elizabeth W. Pearce

Most real estate developers and builders probably would agree that now is not the best time to expand products, services or staff. Todd Gates is not one of them.

For the last 12 years, the chairman of Gates McVey has demonstrated an unflinching ability to recognize opportunities for growth, regardless of market conditions. As a result, Gates McVey continues to broaden the scope of its services and staff, while cultivating the operational depth and leadership needed for future expansion.

“We’re never satisfied with the status quo,” said Gates. “We want to hire people to take us to the next level, not just people who can manage the current level.”

Gates’ ambition and vision have transformed Gates McVey from a small commercial contractor into a multi-dimensional, fully integrated real estate company that has risen to prominence as one of Southwest Florida’s largest commercial developers, with projects extending statewide.

Bigger and Better

“Gates McVey has grown dramatically in the last couple of years,” said Gates, citing key mergers and partnerships behind its growth. One of those, the 2005 merger with Michigan partners The Crawford Group and REDICO, was a major turning point for the firm. “That gave us the financial, human and intellectual capital to go forward in a very large way.”

Besides helping Gates McVey fortify its local presence, the partnership allowed the company to diversify and expand geographically with the development of residential towers, hotels and other commercial projects outside of Southwest Florida. Among them is The Atrium, a $120 million residential condominium development nearing completion on Florida’s east coast.

Another significant merger occurred last year, when Gates McVey Realty and D’Alessandro & Woodyard Commercial, Inc., combined to create the largest commercial real estate company in Southwest Florida: Gates, D’Alessandro & Woodyard, LLC, Commercial Realtors(r). “It truly is one plus one equals three,” said Gates.

According to Frank D’Alessandro, a founding partner of Gates, D’Alessandro & Woodyard, it was a marriage of two real estate entities that took place after careful consideration. “After much due diligence Todd, Tom and I realized that if we brought our resources together, we could provide a much needed service in Southwest Florida – a complete real estate solution,” he said.

Many Services, One Company

Its affiliation with Gates McVey allows Gates, D’Alessandro & Woodyard to offer clients comprehensive brokerage services, including land acquisition, design-build, build-to-suit and property management, among others. “One or all of these are available depending on the client’s needs, and all under one roof,” said D’Alessandro.

In addition to its real estate services, Gates McVey also offers development, construction and financing services.

“As one of the area’s largest commercial developers, we bring much more to the table, in terms of choices,” said Gates. “Some clients want an all-you-can-eat buffet of services that provides for all of their real estate needs, from start to finish. Others prefer an ala carte menu, from which they may select one or more specific services. In either case, we can accommodate them. We really have something for everyone.”

Executive Additions

Maintaining seamless service within the multi-faceted operation requires teamwork and leadership, the cornerstones of Gates McVey. However, in order to take Gates McVey “to the next level,” Gates and his partners recruited industry veterans John Hayes and John Flavin. Each boasts impeccable credentials.

• John Hayes (President and CEO of Gates McVey Builders; President of Gates McVey Butz Institutional Construction)

With more than 30 years of experience in the construction industry, Hayes has been instrumental in managing Gates McVey’s growth. Prior to joining the company in 2005, Hayes spent 15 years overseeing the construction of residential high-rises and other large projects for Gulf Bay Development in Naples.

Hayes says the move to Gates McVey was a great opportunity. “The company has the right mentality and attitude for me personally, in terms of working as a team and treating one another with respect,” said Hayes. “We all work together to deliver the best possible product to the client.”

Because Hayes favors projects that are the most challenging and complicated, it’s no surprise that he describes the construction of Naples Community Hospital’s Wellness Center as a “very interesting and exciting project.”

The high-profile assignment called for construction of a three-story, 90,000sf hospital addition. The design features rehab and therapy rooms, a swimming pool, locker facilities and administrative areas on the first floor, with a state-of-the-art wellness facility and diabetes center on the second floor. The undeveloped third floor is for future office space.

Logistically, it was an “extremely difficult” project. “The building takes up about 95% of the available site, which is surrounded by a very busy street, a main entrance to the hospital complex and a medical office building just a few feet away,” said Hayes. “What little space remained was occupied by a crane.”

An unusually intricate structural system with special HVAC, plumbing and electrical requirements compounded the project’s level of difficulty, as did the fact that the adjacent hospital had to remain operational throughout the construction process. “It was a real test of everyone’s abilities,” Hayes admits. “But those are the best ones.”

The client was thrilled. NCH Wellness Center Director Todd Monrad credits Hayes and his team for creating innovative solutions to the project’s myriad engineering and architectural constraints. “The whole idea was to make a signature building for the healthcare system; one that welcomes the public to the NCH campus,” he said.

“(Gates McVey Builders) took the project personally and took a sense of ownership in it. They still come by on a regular basis to make sure that everything is working as it should, which is exceptional. Usually, it’s very hard to track down a g.c. after a project is completed.”

Since the facility’s January grand opening, Monrad said he’s heard nothing but positive comments about it from club members and the general public. In fact, membership at the Wellness Center jumped by 1,200 – an increase of more than 30% in just nine weeks.

Currently, Hayes is coordinating construction of another high-profile development: a $52 million, two-school campus for the Lee County School District. Located on approximately 40 acres in Cape Coral, the project is the first of its kind for a Lee County contractor. In addition to an elementary school and a middle school, the campus includes a gymnasium, ball fields, running tracks and other improvements.

“Coordinating the construction of two buildings and all the site work simultaneously has been a challenge, but keeping everything moving has made it really fun,” said Hayes. Both schools are slated for completion this summer.

• John Flavin (President and CEO of Gates McVey Capital Group)

Flavin’s incredibly diverse background makes it difficult to condense his many accomplishments. He has an undergraduate degree in engineering from the U.S. Air Force Academy, a law degree from Duke University Law School and an MBA from Harvard Business School.

Between law school and business school, he served five years in the Air Force as an attorney before launching a successful, 25-year career in real estate management for several major domestic and international firms. Most recently, he was fund management director for Grosvenor Americas in San Francisco. In addition to managing $250+ million in investor accounts, he developed investment strategies, raised equity capital and maintained investor relationships for North American and global operations.

However, the desire to be “back in the trenches, in the middle of things,” enticed Flavin to consider new opportunities at Gates McVey. The people are what sealed the deal. “That’s what this business really comes down to – the people,” said Flavin. “I really like the people here.”

Now, as president and CEO of Gates McVey Capital Group, Flavin identifies opportunities and then analyzes their feasibility. If a project makes sense for an owner, he arranges the financing while working with the contractor on the design process and approvals.

Depending on the project, he may also work with Gates, D’Alessandro & Woodyard, which does the marketing and leasing. “Nothing is done on an individual basis,” he said. “Everyone pulls together.”

Flavin says he’s found many similarities between his current position and previous ones. “It’s about positioning yourself for the rebound,” he said, explaining that the current softness of the residential market is no reason for commercial interests to slack off. “There’s a lot of that going on right now, but this is not a lull period in terms of our planning. I’d say our biggest challenge is assessing the current situation and being prepared for the rebound.”

Flavin adds that while it’s a difficult period for many in the industry right now, there is tremendous potential, as well. “Do you keep your eye on the horizon or get bogged down in the day to day stuff? Todd Gates has his eye on the horizon.”

Currently, his sights are set on development possibilities in high-growth areas like Cape Coral, where Gates McVey recently dedicated Andrews Professional Center. Located on Del Prado Boulevard, just north of Cape Coral Hospital, the four-story, medical/office center contains 46,000sf of Class-A space.

According to Gates, it is “probably one of the nicest office buildings in Cape Coral,” and perfectly positioned to take advantage of the area’s growth.

“We have done a lot of construction projects in the Cape, but this is the first development project we’ve done there. We plan to do many more.”

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