Stiles Corp. Builds as It Develops

Fort Lauderdale Firm Reported $180 Million in '05 Construction Revenue

By Bea Quirk

The multifaceted Stiles Corp. of Fort Lauderdale is a well-known developer that in 2000 was named national developer of the year by the National Association of Industrial and Office Properties. As of last year, the 55-year-old firm was responsible for the development of more than 30 million sq. ft. of office, retail, multifamily and commercial space throughout the Southeast.

But the company's construction division, Stiles Construction Co., is also one of the region's largest general contractors, with a reported $180 million in 2005 revenues.

Current Chairman and CEO Terry Stiles was 23 years old when he took over the helm of the small real estate company in 1971 upon the death of his father. He has since transformed the firm into a major player in the growth of Fort Lauderdale, where today Stiles Corp. owns about 1 million sq. ft. of space. Among its key projects in the downtown area are One Blockbuster Plaza, New River Centre, Las Olas City Centre and 350 Las Olas Place, a 30-story luxury condo tower.

Stiles Corp. is a full-service commercial real estate development and investment company that provides clients with design, construction, financing, realty, property management and landscaping services. In addition, the company has an ownership interest in Hernandez Construction, an affiliate company that handles smaller projects.

Altogether, there are 560 employees, 190 of them in the corporate headquarters, with other offices in Miami, Tampa and Fort Myers.

Stiles builds everything it develops, which contributes to its construction revenue. However, Tim Moore, president of Stiles Construction Co., said 80 percent of his division's work last year was for third parties. Major third-party projects include 17 retail stores, as well as a corporate headquarters and distribution center for City Furniture.

Just getting out of the ground are car dealerships in Jacksonville and Naples and an automotive repair training facility for Seminole Community College. Although Stiles builds all over Florida, Moore said about 85-90 percent of its work is done in the three-county area around Fort Lauderdale.

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The company has also become the largest builder of car dealerships in South Florida, constructing 85 of them in the last decade, and it has started building dealerships in Georgia.

One of the firm's highest-profile projects is in downtown Fort Lauderdale, where it has just begun construction of the 298-room, 24-story Trump International Hotel & Tower. The site is near three other Stiles high-rises, 350 Las Olas Place, The Atlantic and Sunrise Harbor, which all overlook the beach.

The company leverages its experience to go after additional business - both in the same field and in new areas. "We are flexible for what the market wants, and we try to understand our clients' business the best we can," Moore said.

For example, that means knowing the needed ratio between car showroom size and the size of the lot. It also means knowing how to build sources for ionized water and air pressure controls for biosafety labs for pharmaceutical companies.

Company president Doug Eagon said: "Because we are so active in the marketplace, we have a variety of experiences to draw upon. But whatever we build, we focus on three systems: scheduling, quality control and budgeting."

Stiles has also developed long-term relationships with business partners such as WLD Enterprises, an investment company that provides equity capital. WLD has been a partner on a number of projects for more than 15 years and has developed about 1 million sq. ft. of office space with Stiles.

"They do what they say they will and always deliver," said WLD executive vice president Mel Burton. "They select sites that are extremely successful, and by serving as their own general contractor, they have total control and know exactly what's going on every minute."

Stiles' construction division has a staff of 140. With 90 percent of the work on construction projects subcontracted out, Stiles employees primarily perform management, supervision and administration roles.

"Our subs are a vital part of our team and play a vital role," Moore said. "It comes down to reputation and your track record in the industry - do you deliver a quality product to your clients?"

But with the vigorous market now developing in South Florida, Stiles has had to change its approach to subs somewhat. "Subs - and suppliers - are getting spread thin, so we have to manage them more closely," Moore added.

It's a situation that Stiles management is careful not to let happen to them, and Moore said the company has turned down $2 billion worth of work in the last two years.

"We want to exercise a reasonable amount of restraint so we can grow intelligently," he added. "We want to grow, but we want to maintain control of the quality and stay within our capabilities."

But that doesn't mean Stiles doesn't take risks - or move aggressively. Company revenues grew by 400 percent between 1994 and 2001. Although the office market in South Florida tanked after Sept. 11 and is now just recovering, the company is currently developing and building two major spec projects - a 200,000-sq.-ft. office tower in Fort Lauderdale and the first building in a 30-acre business park it just acquired in Broward County.

Over the next decade, the company expects to build 1 million sq. ft. of office space there, as well as 1,000 residential units. This first structure will encompass 140,000 sq. ft.

"You can always find a reason not to do a project," Eagon said. "You have to have conviction and be confident about why you are going ahead. You have to believe in the location and product."