Feature Story
Gates McVey Expands Presence Statewide With New Partners
By Elizabeth W. Pearce

As a commercial contractor and developer, Naples-based Gates McVey has plenty to commemorate this year, namely a decade of prosperity in a highly competitive industry. However, the company’s 10-year anniversary bash in April was more than just a tribute to its remarkable past. It was a celebration of what promises to be an even more remarkable future.
“Going forward, we’re taking this company to the next level,” said CEO and President Todd Gates, who credits his confidence to the strength of the company’s new partners, The Crawford Group and Real Estate Development and Investment Company (REDICO). The two Michigan-based companies have developed a total of more than $5.5 billion worth of real estate throughout North America, and have owned and managed more than 30 million square feet of commercial space, as well as 10,000+ residential units.
“It’s the same Gates McVey, but with much greater depth and range,” said Gates.
Founded in 1995 by Gates and partner James McVey, the company has grown considerably over the years. Established as a small, general contractor, Gates McVey quickly became known for building top-quality commercial projects including office buildings, shopping centers, medical facilities and financial institutions. In 1997, it developed Park Central, Naples’ first professional condominium complex.
The company’s 1998 partnership with Steve Robison helped distinguish Gates McVey as the area’s premier, fully integrated construction, development, real estate and capital firm. By the time McVey left last fall to spend more time with his family and pursue other opportunities, it was also the largest commercial developer in the area, with projects throughout Collier and Lee counties (see box).
“We were doing fine, as long as we wanted to limit our work to the Naples-Fort Myers area,” said Gates. But in order to expand the scope and geographic range of its projects, Gates McVey needed outside assistance. “We had the reputation, the name recognition, the credibility and the contacts, as well as significant market share,” said Gates. “To grow, we needed additional financial and human resources.”
Enter The Crawford Group and REDICO, which were looking for business opportunities in Southwest Florida. “It was a match made in heaven,” said Gates. Crawford Group CEO Richard Crawford agrees, adding that Gates McVey first impressed him several years ago, when the Fifth Third Bank building was under construction on U.S. 41 and Vanderbilt Beach Road. The Crawford Group, which had been a limited partner in the building, ended up taking over the project and hired Gates McVey to complete the project. “During that time, I got to know Todd, James and Steve quite well, and I knew that they were quality people,” said Crawford. “The key to any business is quality people and good management, and we felt that Gates McVey had both.”
Crawford also believed that Southwest Florida was a land of opportunity, having visited the area since 1990. He has also owned a home in Naples for the last six years. “I knew the area and loved it, and wanted to spend more time there,” he said. Establishing a commercial presence in the area was another story. While both The Crawford Group and REDICO have more than enough capital to compete with the most successful commercial developers in Florida, they lack Gates McVey’s local market knowledge and connections. “They have the relationships and reputation in the community that would take us many years to duplicate,” said Crawford. “You can’t buy that, and we knew we couldn’t come in and establish that overnight. That’s something you have to earn, and earn over a long period.” Affiliating with Gates McVey seemed an excellent way to shorten the time frame. By combining assets, the enhanced Gates McVey now has the financial strength to not only fortify its local market share, but also expand to new markets. Currently, the company is targeting opportunities on both coasts of Florida: Aventura (in northern Dade County), Daytona, the Panhandle and Sarasota. Further, the new partnership has enabled the firm to diversify its commercial focus and pursue other development projects such as residential towers and hotels. For example, in Aventura, they are poised to break ground on two 11-story $120 million residential towers.
“With our new partners, we can really take advantage of the opportunities in Southwest Florida and statewide,” said Robison, senior vice president and the head of Gates McVey’s Capital Group. “Now we can reach out and (attract) joint venture partners that operate on a national scale, which would have been much more difficult to do before we strengthened the company.”
According to Robison, the firm will be working primarily with national institutional investment fund managers. He says that many of them are looking for a local partner with a vested interest in a project, as well as the local resources to make the project successful, such as sales, marketing and construction skills. “They like this area geographically and demographically (because) its potential for prosperity is probably better here than just about anyplace else in the country,” he said. “Working with Gates McVey gives them the vehicle to participate in the market’s growth and expansion, even though they don’t have a local presence.”
Based on their combined resources, Crawford plans for Gates McVey to be “a major factor in the marketplace for a long time to come, and continue to build on the reputation and the class that the company has always had.” Gates adds that while he’s not ruling out the long-term possibility of developing projects outside of Florida, expanding beyond state lines is not in Gates McVey’s immediate future. “At this time with our new partnership, we’ll be reviewing all opportunities and prospects within the state of Florida. However, as we go forward, we’ll continue to evaluate our options.”

Gates McVey Partners

Todd E. Gates,
President and CEO
Gates has been a full-time Naples resident since 1984 and a principal of Gates McVey since 1995. Over the years, he and his partners have expanded the company’s services to include commercial development, real estate, mortgage and capital allocation. Named Man of the Year and Builder of the Year in 2003, Gates is the past president of the Collier Building Industry Association. He sits on many boards and is active in numerous organizations in the community, including the Economic Development Council of Collier County, the Naples Chamber of Commerce and The Children’s Hospital of S.W. Florida.

Steve Robison,
Senior Vice President
For the past 25 years, Robison has managed the successful completion of more than 20 real estate projects including office buildings, retail centers and residential subdivisions, and the sale of more than 7,000 condominium units. He joined Gates McVey in 1998 as the managing partner of Gates McVey Capital Group, LLC. He is a Florida-licensed real estate broker, mortgage broker and general contractor, and has extensive experience in securities, investment banking, real estate investment analysis, financing and construction.

Richard S. Crawford,
Chairman
Based in Grosse Pointe, Michigan, Crawford is also the chairman of The Crawford Group. Highlights of his career attest to his entrepreneurial talents in starting, acquiring and operating numerous successful businesses in diverse industries ranging from real estate to manufacturing. His 32 years in the real estate business have focused on acquiring, financing and operating real estate investments. Further, he has developed more than 35 commercial, residential, industrial and office projects in seven states, including Florida. A licensed builder and construction contractor for 25 years, Crawford has built several thousand single and multi-family homes, as well as numerous industrial, retail and office buildings.

Dale Watchowski,
Vice Chairman
As president and CEO of Detroit-based REDICO, Watchowski brings to Gates McVey a 20-year record of innovation, expertise and success. REDICO is a full-service commercial real estate development, investment and management company that develops, acquires and owns a broad spectrum of commercial properties. Watchowski oversees the day-to-day operations as well as the development and execution of long-term strategies. He is also the former CIO of The Kojaian Companies, a full-service real estate organization with properties nationwide.

Ira J. Jaffe,
Secretary
Jaffe has been closely affiliated with The Crawford Group for 20 years as both a business associate and attorney involved in its creation, development and management. In addition to being a senior principal in the Detroit law firm of Jaffe, Raitt, Heuer and Weiss, he is the chairman of REDICO. He is also an officer, director, trustee and attorney for numerous public and private businesses and real estate
entities.

Gates McVey Projects
Gates McVey specializes in all types of Class-A commercial construction, including retail centers, hotels, office buildings, restaurants and medical facilities. Its diverse project list includes ongoing expansions at the 750,000sf Miromar Outlets in Estero and the new 16-acre campus for International College in Fort Myers.
In north Naples, Gates McVey now occupies the new corporate headquarters building it constructed last year to accommodate its expanding staff. Containing 12,500sf, the two-story, Mediterranean-style, Class-A structure was awarded the 2004 Sand Dollar Award for Best Commercial Building. It was also named a Landmark Building by Gulfshore Life magazine.
Other recent projects of note:

Equestrian Professional Center (Naples): Located at the entrance to Lely Country Club, the office complex contains five buildings totaling 25,000sf.
Lofton’s Island (Downtown Fort Myers): A four-acre island in the Caloosahatchee River, under development for residential, hotel and restaurant uses.
Hill, Barth & King Corporate Building (Fort Myers): A two-story signature building with 18,000sf of office space.
Center at the Springs (Bonita Springs): A two-phase Class-A office complex.
North Naples & Technical Park. The site of a former golf range is being developed as a mixed-use site for industrial, commercial, research and technology, and workforce housing components.
Miromar Golf Club (Naples): Reminiscent of a rustic Italian villa, the 16,000sf clubhouse features a brick paved courtyard and circular bar overlooking the golf course and lake.
 

All rights reserved copyright ©2005 Suite Life Magazine
No material in this publication or on this web site, may be reproduced without written permission from the publisher.