High-Rise Homes and Health Care

R.J. Griffin & Co.'s Focus on Growing Sectors Spell Success

by Sheila Bacon

Atlanta-based general contractor R.J. Griffin & Co. is riding a wave of health-care and multifamily projects across the Southeast to exceptional company growth.

The company reported nearly $294 million in revenue in 2004 from the four-state region, an approximately 30 percent improvement over 2003 when R.J. Griffin & Co. reported roughly $225 million in revenue.

Steve Touchton, president of the 20-year-old company, said the firm's success comes because "we're incredibly client-centered. We're not looking to do one job with someone and no more. We're looking for a relationship that continues."

The company, which operates outside of the four-state area as well, indicated its total revenue for the year was approximately $450 million.

History, Recent Change

R.J. Griffin & Co. was started by four former employees of Atlanta general contractor McDevitt and Street (now Bovis Lend Lease), reporting $9 million in revenues its first year.

Growth followed quickly. The entrepreneurs more than tripled those earnings the following year, and the company has continued to grow annually.

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It can claim success in part from its experience in growing market sectors such as medical and multifamily residential projects, as well as its geographical presence. The firm has managed to capture a significant share of hospital work as the evolving health-care industry fuels demands for new and updated facilities.

Its past experience building high-rise condominiums along the East Coast from northern Florida to the Carolinas has helped it win work constructing popular urban residential towers in city centers such as Atlanta. Branch offices in Charlotte, Nashville and Orlando help keep workloads steady.

But company leaders continually say that the firm's success comes from fostering professional relationships and its high quality of work. Its attitude is evidenced by the factors surrounding the 2000 sale of the company's assets to contracting giant J.E. Dunn, based in Kansas City, Mo.

Touchton said that R.J. Griffin leaders were approached by three buyers, but they passed on the highest offer for the promise of a collaborative relationship.

"We talked to lots of companies, but we really hit it off with the Dunn family," Touchton added. "They weren't trying to assimilate us into a big organization; they wanted this to be a partnership. We felt that they offered the best personality fit."

The union has been a happy one, so far. The sale gave R.J. Griffin & Co. a higher bonding capacity, allowing the firm to go after more work and bigger jobs. Inclusion in a larger corporate family has resulted in networking partnerships between R.J. Griffin and Dunn's branch offices in Denver, Seattle, Minneapolis and elsewhere throughout the country.

Staying Focused

R.J. Griffin has been able to build its business with repeat clients.

"We try to understand and listen to what our clients' needs are," said David Paris, executive vice president. "Sometimes those needs aren't obvious to us. That's where we have to listen and be part of the process."

Long-time clients include Northside Hospital in Atlanta as well as Wood Partners and the Novare Group, Atlanta-based developers of urban condominium projects. R.J. Griffin has performed numerous jobs for Northside, as well its neighbor, Children's Hospital at Scottish Rite.

At Children's Hospital, a 580,000-sq.-ft. master campus plan expansion and renovation is under way. It includes a two-floor tower above a new lobby; a second two-story tower above three underground parking levels; a new, 54-bed emergency department; and enlarged surgical areas.

The contractor is also building a number of condominium towers with Wood and Novare, including Eclipse, Spire and TWELVE, a 26-story condominium and hotel tower in Atlanta's Atlantic Station development. TWELVE includes 404 condos and 101 hotel rooms, as well as a 5,000-sq.-ft. ballroom, 5,000-sq.-ft. of restaurant space and 10,000-sq.-ft. of retail.

The company is also working on the $48 million first phase of the Marina at Grande Dunes development at Myrtle Beach, S.C., for Myrtle Beach developer Burroughs and Chapin Co. The mid-rise, poured-in-place condo/hotel project includes three condominium buildings ranging in height from seven to 10 stories and encompassing 131 units. The hotel offers 66 rooms and includes a bar, restaurant, spa, pool and 20,000-sq.-ft. conference center.

Jim Wiseman, Burroughs and Chapin's chief development officer, has turned to R.J. Griffin & Co. several times to build its projects, including Grande Dunes' Vista Del Mar I and II luxury condominiums, Grande Dunes' golf course clubhouse and a 10-story high-rise timeshare in Gatlinburg, Tenn.

"We've developed a great team relationship with them," Wiseman said. "I'm impressed with their capacity, their attention to detail and their people."

Growing in a Good Way

Expanding the company is a goal of R.J. Griffin leaders, but in a controlled fashion.

"We're definitely growth oriented, but not just for growth's sake," Touchton said. "We have a lot of conversations about that. We have a lot of good people here, and we have an obligation to give them good growth opportunities."

Employees are "really all we are," Paris added. "Contractors don't have any patents or unique construction secrets, really. What we've got are creative people and people who work well in a creative environment."

R.J. Griffin & Co. now employs 275 salaried employees in its four offices, with another 275 in the field. Upon joining the firm, all employees attend training sessions where they learn about company goals and philosophies.

Every year, each office hosts a planning session away from the office to focus on the company's strengths, weaknesses and future plans.The gatherings place a focus on the importance of the firm's employees, one of the reasons the firm expects company revenues to top $600 million by 2006, Touchton said. "We have a bunch of people who want to be senior project managers and group managers," he added. "With people like that, it's a little hard to stand still."