“Commercial development and construction is a maze of what ifs and how-to’s and quite honestly, it can become an immense challenge.” This admission on Arnold Construction’s Web site proves their understanding of the business; and they rise far above the challenges.

Arnold Construction, as a part of the Arnold Family Corporation, was founded in 1995 and is headquartered in Columbia, South Carolina. The company serves the entire state of South Carolina and areas of North Carolina, with plans to move into parts of Georgia in 2010.

With their impressive revenue growth to $27.3 million and 25 employees in 2008, Arnold Construction serves the commercial and multi-family sectors. Their diversified projects also include multi-family renovations and federal and state government backed projects.

Arnold Family Corporation Chairman, Norman J. Arnold, began his career in the liquor distribution industry while owning some real estate on the side. Ben Arnold, Norman’s son and president of Arnold Construction, graduated from the University of Florida with the desire to live and work in a bigger city. He moved to Atlanta in 1989 with the intent of working in the commercial real estate industry. At that time, banks were shutting down their real estate lending departments. As a result, Ben decided to enter the industry through property tax consulting. After working for a national property tax consulting firm for one year, Ben started his own firm out of his house in Atlanta. By the end of 1992, Ben had moved the business to Columbia, South Carolina and had $500 million in assessed value under appeal in the Carolinas and Georgia. The property tax consulting business taught Ben how to appraise property and how to negotiate low tax values for his clients.

Partnering with his father, the two began Arnold Construction to “purchase, renovate and manage out-dated apartments,” said Ben. Buying and renovating for themselves, the Arnold’s branched off into office, retail, light industrial, and several mixed-use projects throughout Columbia, which has since become their specialty.

Arnold Construction manages all aspects of the construction process, from site selection through construction, including critical path scheduling, value engineering and cost analysis.

The Intricacies

Arnold Construction’s project variety exemplifies the company’s expertise and ability to rise to any challenge, completing truly intricate and complicated mixed-use projects. “We have been working in downtown Columbia for 15 years,” said Ben.

Their work in redeveloping four city blocks in Columbia’s Vista district is one such example, in which they turned several warehouse buildings and vacant lots into mixed-use entertainment developments with bars, clubs, multi-family buildings, offices and restaurants.

The company recently purchased the Lake Murray Marina with plans to develop the upland into an upscale residential community. Located on a 48,000-acre lake, the community will offer 216 new resort style apartments.

Arnold Construction used design-build systems to develop Lake Carolina’s Town Center; a 22 acre mixed-use development within a 1,700 acre master planned community. Arnold constructed five, two-to three-story buildings that contain offices, retail, and restaurants on the ground floor and office and multi-family space on the upper floors. The neo-traditional architecture with varying facades gives the suburban development “a slice of Small Town USA” for Lake Carolina residents with easy access to shops, restaurants, medical and professional services in a pedestrian-friendly environment.

Award-Winning Growth

In 2008, Arnold Construction was named the 10th Fastest Growing Company in South Carolina by the South Carolina State of Commerce for the 2006 to 2007 calendar year. With an even more impressive year in 2008 with a growth rate of 245 percent, Arnold Construction is certainly not slowing down.

The company is, of course, not immune to the slowing economy. So, what has made them so successful? “Being in the right product type at the right time is important,” reflected Ben, telling how he developed and sold condominiums in 2005 and 2006, shortly before the mortgage crisis. “Establishing relationships with developers in the right sectors such as elderly housing, multi-family and government, as well as being in the right place at the right time makes all the difference.”

Managing their supply chain has also proven extremely important, particularly with multi-family renovations. “It is critical to have bulk buying capabilities and to form relationships with vendors that can supply goods in a timely manner,” said Ben. “We decide who to use based on reputation, quality, and cost; in that order.”

Exploring New Options

The City of Columbia is positioning itself to become the epicenter for hydrogen power technology. Ben Arnold sits on the board of EngenuitySC, an organization compromised of business and industry leaders focused on the knowledge-based economy in the Columbia, South Carolina region. The board’s goal is to encourage ideas, technology, research and public policy in an effort to help companies provide access to start-up investment capital. Arnold Construction has proposed to construct the first hydrogen powered commercial building in Columbia; however the construction and operating costs have not been finalized. Ben hopes that the company will be actively involved with these “cutting edge” projects when the economy turns around.

Prepared

“I have been expecting this slowdown for two years. That’s why I got out of the condominium business a few years ago,” said Ben about the current economic freefall. “We are just waiting for the right redevelopment opportunities…obtaining financing is difficult, so you have to be liquid if you want to play.”

The development side of the business has slowed which has diverted Arnold Construction’s energy to renovation projects, particularly for affordable housing sites throughout South Carolina and into North Carolina. Their Marina project will be financed by the US Department of Housing and Urban Development, with a safe, low-risk loan and will start construction in 2010.

“We aren’t looking to do new developments in 2009,” said Ben.

The macro problems of the US economy is concerning. “Rising unemployment continues to negatively impact consumer spending which hurts retail and industrial real estate. Offices will experience negative absorption as layoffs result in less demand for space,” said Ben. “The rapidly growing green building trend, while costly on the front end, is extremely important for sustainability of America’s future. It is a lot to keep up with but we are working to stay ahead of the curve with the green movement,” said Ben.

Despite the ever-present economic crisis that is holding back and even undoing growth in all sectors of today’s global marketplace, Arnold Construction plans to continue with their outstanding growth.

“Surround yourself with the right people, have a balanced life, read, and strive to learn as much as you can.” Ben’s philosophy has served him and his business well. Grounded in his values and well-rounded life, Arnold Construction is guaranteed to continue making their mark on this great American landscape.