Olson: Each of these hotels is unique to what the market demand is. Our focus isn’t to bring a pre-set idea to a market, but to bring what the market is lacking. For example, in Huntington Beach, there was no truly lifestyle hotel that actually had the ability to hold large weddings, meetings and outdoor events in an oceanfront setting. That’s a category we felt was lacking, so that’s where Paséa Hotel & Spa comes in. We liked what Shorebreak has done, and it actually gave us some confidence that the demand was there, but the market needed much more meeting space and ocean views. Shorebreak was successful, but this piece was missing. For the Irvine Spectrum Marriott, we had developed a Courtyard there, and it was very well received by the business and leisure community, but what was missing was the full-service category—this market hasn’t had a new one in 10 years. We saw the demand for that through the hotel we have there. Marriott has recreated the Marriott brand—the mothership brand for Marriott—and they’ve made a big push to reinvent the brand to today’s travelers. We are the first rebuild of this new brand. It incorporates new rooms with wood flooring (no carpet), open closets, everything that appeals to today’s traveler. Marriott is the best in the business when it comes to understanding today’s travelers and keeping up with their demands. They have great research teams for every brand. We’re the first new build of that new brand, and combined with the shortage of full-service hotels in the market and what we knew from Courtyard, it gave the market what it was missing.

In Newport Beach, no new hotel had been built in 50 years. What we felt was missing there was a destination brand hotel where people go to really experience Newport Beach, what it has to offer, and to feel like they’re really in the fabric of Newport Beach. Many people think of Newport Beach as Fashion Island, but the reason people came was right here, on the peninsula—Lido Village and out to the Balboa Pavilion. People took the Red Car Trolley down from L.A., and the Pavilion was built in 1906. There really had been nothing to accommodate guests of a high quality in this area. We felt this was a great opportunity to do a destination brand that brought Newport Beach to Newport Beach, if you will. This hotel will celebrate its history, but also today’s fabric of Newport Beach, which makes up everybody from the surf crowd to the yachting group and even skateboarding. There’s a tremendous eclectic mix of so many culture, and this is a great way to bring that together.

Wilhelm: Each of these hotels is in a very unique community that is thriving and working together to enhance the community experience. The Irvine Spectrum area has developed and will continue to develop a great community—a live/work/all-around experience. You’ve now got a full-service hotel that will really enhance the experience of holding the community together: you’ve got the live/work aspect and part of the white-collar experience of Irvine Spectrum; the tech industry is also starting to expand its horizons in that area. I believe that having a full-service hotel brings things to full circle there and takes the game up a notch or two. With the Paséa Hotel—Huntington Beach has always been a very cool surf city. Over the last several years, it has grown a number of residential single-family communities and condos in the area. The city has always done a great job at trying to enhance the experience in Surf City—people use dot go there to surf, play volleyball and grab a burger. Today, there are hotels and condos and also a great retail experience with Pacific City. Paséa will be one of the top-rated hotels in Southern California, and there are a Hyatt and a Hilton next door to each other, which is enhancing the hospitality experience. The Paséa is looking to capture individuals who want to stay a number of nights.

As for Lido Village, the peninsula is a great place to hang out, but it has struggled with having a new identity. It had been kind of a sleepy town, but there have recently been some very impressive movements form the development side. They’re expanding and bringing to the forefront what Newport Beach is all about. There are lots of areas like Newport Coast that have been experiencing liveliness, but the peninsula has lagged. Lido Village will really help; it’s the gateway to the peninsula, and Lido House will really help launch that gateway. It’s a beach community property where you’ll know you’re in Newport Beach because the designers are focused on making the community a part of the design. They have really pulled the community into the project. Read the entire story at Globe St.com

Irvine, CA—The hospitality industry has recognized an opportunity to appeal to Millennials and go further with the existing trends of improved hotel amenities without raising rates by simplifying individual guestrooms, R.D. Olson’s EVP Tim Cromwell tells GlobeSt.com. Some are calling this new combination of small rooms and lively common areas “the microhotel.” We sat down for an exclusive interview with Cromwell about the microhotel trend, which brands are adopting it and where it could lead.

GlobeSt.com: What makes the “microhotel” attractive to Millennials?

Cromwell: Hotel brands and developers are trading spacious or luxurious guestrooms for common areas that foster community. With an emphasis on vibrant communal space, style and economic value, microhotels appeal to today’s social traveler. Millennial-friendly amenities include large common areas, free WiFi, breakfast, and smaller guestrooms to encourage socializing and use of the property’s common areas.

GlobeSt.com: What hotel brands are jumping on board?

Cromwell: Some of the most fascinating and dramatic applications of the microhotel concept can be seen at properties that are looking to capture the more budget-conscious Millennial. For example, Pacifica Hotels is targeting the Millennial subset at the Wayfarer in Santa Barbara, CA, where guests can choose between private hotel rooms or dorm-style hostel rooms. In addition to the heated pool, community kitchen and “playful” decor, the hotel/hostel advertises the lively activity of Santa Barbara’s nearby State Street as an amenity in itself. Pacifica Hotels has similar plans for converting the historic Ritz-Milner Hotel in Downtown Los Angeles to another Wayfarer property in 2016.

Additionally, Marriott’s Moxy brand couples 183-square-foot standard rooms with amenities targeted at urban travelers such as full bars and grab-and-go food offerings. In the same vein, Hilton’s Tru brand plans to offset compact 230-square-foot king rooms with 2,770 square feet of varied amenity space to offer travelers a range of areas to relax and socialize.

GlobeSt.com: Will this trend continue for new hotel developments in the future?

Cromwell: Microhotels have been well received in urban areas and are expected to continue expansion into more suburban areas where travelers look for both great value and smart design. It will be interesting to watch how the hospitality industry evolves to further capitalize on the community-minded nature of the Millennial traveler in 2017 and beyond. For now, the name of the game is the exchange of larger, luxurious guestrooms for more highly amenitized common areas that foster community.

IRVINE, CA—Concern about oversaturation has arisen among hotel developers and lenders who see quite a bit of product in the pipeline, opening opportunities in renovation and repositioning of properties, R.D. Olson Construction’s president Bill Wilhelm tells GlobeSt.com. The firm was recently selected by Disney Way Partners, L.P., as the general contractor for the new Country Inn & Suites ground-up hotel project in Anaheim. We spoke with Wilhelm about how hotel brands and developers choose fulfill their objectives in a particular market, as well as his expectations for hotel construction this year.

GlobeSt.com: How do hotel brands and developers fulfill their objectives in a particular market?

Wilhelm: That’s a question that’s not all that easy to answer. Geographics is playing a lot into what hotels are built and where, and also the number of equal-type hotels that might be located in a general area. Brands will be very careful not to oversaturate a local market based on what they have in the market. From a branding perspective, they understand what they have in that neighborhood. Brands do a really good job of gauging what the market conditions can withstand from a renovation or development perspective.

Developers are looking for dirt, knocking on doors and selling why that location makes sense. They’ve got relationships with different brands, and they understand what makes a location work in a specific area. Local geographics play a lot to the success of a hotel long term. They start to evaluate what kinds of rooms, what features and what the community is looking for in order to get the best return on their investment. That drives a lot of it—they’re not going to put in a full-service hotel in an area that doesn’t have opportunities to fill those rooms. You want to put a full-service hotel in a market that has corporate customers but can also fill rooms with weekend usage.

You also have different market levels—primary, secondary—and some markets in the last four to five years have been all over the place. As the hospitality industry starts to slow down, certain markets may become a little skittish, so what is going to drive those rooms? Local business segments such as tourism might be in secondary market that aren’t bad markets, but a turn of events means they might not fill up as well.

They also look at existing properties flying their flag that may be aging, so they ask franchisees to update the properties to make them current; they might not renew a franchise if they don’t update. That’s part of the brand side; the developer side is understanding a geographic market and where they resonate putting heads on beds. Read more here.

By Paul Hughes

...Construction on a “lifestyle” hotel under the Marriott name starts in Irvine in March with a fall 2017 opening planned, said Mike Chavez, senior project manager for R.D. Olson, which is developing the project.

It’s “right across the street from (the) Taco Bell” headquarters and just off the I-5 (Santa Ana) in the Irvine Spectrum area.

The hotel includes a 5,000-square-foot ballroom that can be divided into two meeting rooms if needed; a 6,800-square-foot lawn; and a 1,500-square-foot prefunction area that opens onto both of the larger spaces —similar to the Paséa setup.

Two other meeting spaces—a boardroom of about 500 square feet and a 2,000-square-foot room that can be split in half—bring the hotel’s total space to just less than 16,000 square feet.

Chavez pointed out an interesting lawn element “for guests to have fun with,” a nearly life-sized chessboard—it covers about 240 square feet—with pieces 3 to 4 feet high.

The hospitality market has made a true comeback over the past several years as a result of the improving post-recession economy. Business trips are more common, and families and couples are once again traveling for pleasure. To keep up with the increased demand, the hospitality construction and development sectors have responded, adding various properties, many of which are select-service hotels in strategic locations. While this rapid growth has positioned the hospitality sector well, there are signs the market is imminently changing— and that the strategy behind hospitality construction and development must, and will, change with it. The improvements in the economy have driven increased demand for beds and amenities. That same economic upturn has also boosted land and construction prices, ultimately increasing the cost of hotel development. While there is stilldemand for additional hotel rooms in some markets, others are showing signs of saturation. Hospitality professionals will need to address both the increased cost of construction and market saturation – and provide a truly unique product — if they are to succeed and compete in the changing marketplace. 

- Bill Wilhelm, President - R.D. Olson Construction

Read the entire story on page 24 of this month's Western Real Estate Business.

High occupancy rates, rising room rates, record hotel sales - the year had it all. 

We’re excited to be a part of the booming hotel industry in Orange County this year! According to a recent article in the Orange County Register, the OC experienced high occupancy rates, rising room rates, and an increase in new construction in 2015. Our Pasea Hotel & Spa project, slated to open in the spring of 2016, was featured in the piece, which highlighted the hotel’s unique customer experience and amenities, such as flip flops instead of slippers and 34,000 square feet of event space. Learn more about the region’s hotel boom here.

By Laurie McLaughlin

As the economy strengthens, the building industry has regained momentum, and Joe Cervantes' Leadership has helped R.D. Olson Construction maintain a competitive advantage.

Read our Executive Vice President's entire corporate profile in his Alma Mater's magazine here.

R.D. Olson Construction Expands Its Reach and Positions Itself for Success - By Janice Hoppe

In its 36th year of providing excellence in general contracting and construction management, R.D. Olson Construction has a well-established reputation in the industry and is now focused on building its legacy for the future. "What have we focused on in the last couple of years?" President Bill Wilhelm asks. "Not letting our prior 35 years of success get in the way of the future and focusing on what kind of change we have to make to adapt to the change in the industry."

 Founded by Robert Olson in 1979, the Irvine, Calif.-based company established itself as a nationwide general contracting and construction management firm recognized for reliability and customer loyalty. The company is known for its hospitality construction expertise, as well as its growing presence in healthcare and multi-unit projects.

Sixty percent of R.D. Olson Construction's work focuses on the hospitality sector, including new development, renovation and repositioning, spas, country clubs and restaurants. About 30 percent of its work includes multi-unit projects that include timeshares, assisted living, student housing, and for-rent and sale properties. The balance of its work includes private education, healthcare and entertainment facilities.

"we are focused on increasing our revenue stream in areas outside of hospitality, though that is our bread and butter," Wilhelm explains. "We have an impressive reputation for being a hospitality builder, but we are a company that is focused on the future, our legacy and sustainability. You have to look outside the environment you have played in  for some time and work on segmentation rebalancing."

Multigenerational Workforce  The entrepreneurial spirit of the company translates into making a difference in the client's experience, enhancing relationships with subcontractors and the design team in an effort to "hit the grand slam" for a project's success, Wilhelm explains. "We are very impressed and proud of our people," he adds. "They have come forward with accepting the necessary change, as we focus on the future."

Finding associates is one of the biggest challenges facing the company - and the industry as a whole - because of the decline in younger generations entering the construction industry. "It's an industry that has been depleted; the construction industry was hit pretty hard (during the recession)," Wilhelm notes.

However R.D. Olson is beginning to see a new injection of individuals into the industry and prides itself on the multigenerational workforce it has created. "How do you bring different generation together to feed off what each other has to offer?" Wilhelm asks. "The seasoned associates may not be as tech savvy, but the younger generations, that's what they do - they live and die by technology. The younger associates are teaching the seasoned associates how to capitalize on technology that's available and the seasoned individuals are opening the door and educating the younger generations on what being a builder is all about."

Developing a multigenerational culture is part of what sets R.D. Olson apart from the competition and is its greater goal of building a legacy for the future. Although implementing state-of-the-art technology and new systems regularly attracts the younger generations to R.D. Olson, it has also become an industry standard. So to go above and beyond that, the company is focusing on building a strong community connection that younger generations crave. "We create a lot of opportunities for our associates to do things together within and outside the company to create experiences for individuals to be part of something bigger," he explains.  

To see the rest of this story click here. 

CONSTRUCTION: Builder looks to downshift on hotel work

by Paul Hughes

ORANGE, CA—Strong real estate assets can help universities jockey for high ratings in an industry that competes for the best students, professors and programs that higher education can offer, R.D. Olson Construction’s president Bill Wilhelm tells GlobeSt.com. As we recently reported, the firm is building the Hilbert Museum of California Art, a new museum at Chapman University here, including the construction of the university’s new Musco Center for the Arts. We spoke exclusively with Wilhelm about the project and trends in academic development.

GlobeSt.com: What changes are you noticing in academic development?

Wilhelm: Universities have definitely been ramping up for an increased enrollment degree that they’ve been challenged with the last few years. Enrollment is up across the board, from private colleges to public universities, even though people have been through tough times—they realize that higher education is important. Everyone is looking for ways to adopt and extend education. We look at job candidates all day long, and we are focusing individuals who are bringing a higher level to the table as an offering of their overall portfolio. People are looking at the future of companies, sustainability and legacies.

In the educational world, a lot of schools are putting together a 10-year program, a master plan, with their needs and the items they’re trying to capture. Some California universities have a 42,000-student enrollment but can only house 3,500 students. So, they’re looking to expand their amenities: science buildings and lecture halls, labs, etc. They’re looking for student housing as well as on-campus hospitality for visiting parents and professors.

Regardless of the university, every campus within Southern California has the same problem on the housing side, and on the academic side, schools have to provide the competitive advantage as well. They’re all jockeying for rating in an industry as the best pharmacy or law school. They’re racing to bring on top-notch professors, and they’re realizing they haven’t done much from a development perspective as they needed to do. There’s a competition to pull in the best and brightest students and professors—even Nobel Peace Prize-winning professors to provide that department recognition and to truly create that brand.

GlobeSt.com: How are academic buildings becoming more cutting edge and less institutional?

Wilhelm: In the last 15 years, they haven’t chased this as much as they should have, but they’ve shifted focus; now they’re fully engaged in catching that. Regardless of the industry, we study multigenerational aspects quite a bit, and Gen Z has hit the media. It all comes back to what their needs are, but there’s this lifestyle, this expectation of what we have to adapt to the needs of the future.

Universities are getting away from the institutional look; they’re creating a very free-flowing-lifestyle environment. They’re trying to design as best they can into the local geographic element. For example, Chapman is a phenomenal campus, and it has the old city of Orange charm. Every university is doing a great job in partnering with local communities and creating this lifestyle, open-format, technologically advanced environment that has a feel of where we’re all going. Universities are creating this true open concept, this “bring the family on in” feel. For this generation of students, this is what they’re looking for. You see it in the multifamily and hospitality industries, and it’s the same in academics. Who is our end user? What are their needs and expectations? We’re no longer doing things because of the industry, but because of this expectation from the users.

More of this story here.

"R.D. Olson Construction, Marriott's California contractor, reports that 'the new hotel will be located on a 6.37-acre land parcel and will be among the first new build Residence Inn Generation 9 properties in existence.' The project broke ground in July 2014 and is scheduled to finish in May 2016...

Loosely translated, wailea means 'water play'...so it's only fitting that the Marriott Wailea Residence Inn incorporates water as a distinguishing feature in their design and operation. Along with a 'resort-style pool and spa' Marriott's new 200-room, four-story Wailea hotel will feature a fitness center, an outdoor sports court, a market and 1,800 square feet of meeting space."

Los Angeles, CA—Hotel developers are beginning to look to the location and community for design inspiration. The recently opened Marriott SpringHill Suites in Burbank is the perfect example. Developed by R.D. Olson Development and built R.D. Olson Construction, the hotel design and amenities are informed by Burbank’s rich entertainment history—and in some cases, atypical for the hotel brand. Infusing pieces of the community into the hotel helps attract guests and locals alike. To find out more about this trend and how the team approached the design of this property, we sat down with R.D. Olson Development VP of asset management Jonathon Vopinek, R.D. Olson Construction president Bill Wilhelm and R.D. Olson’s VP of interior design Sue Ellen Langford.

GlobeSt.com: What are hotel guests looking for in their common amenities that guests weren’t demanding 5 years ago?

Bill Wilhelm: Guests are looking for a variety of things from each property that they encounter. Specifically, flexibility, experience, visibility and communal openness are traits that speak to hotel guests today. All of these qualities tie into the end-users’ desire to have the property serve them in all aspects of their lifestyles.

Jonathon Vopinek: Five years ago, streaming a Netflix account through a hotel television wouldn’t have crossed anyone’s mind. Now, it is something that will become an industry standard in the near future. We are proud to offer this type of service in the SpringHill Suites, as we believe it is important to keep up on the latest technology and deliver it to our guests.

Lobbies with creative spaces are becoming more and more popular. People want to gather in hotels’ common areas, instead of just coming down to the lobby to get a cup of coffee and then heading back up to their rooms. Additionally, incorporating local art into the interior design of a hotel has become popular. Over the last few years people have made an effort to support local businesses, so to see a hotel doing the same creates a genuine experience for the guests.

GlobeSt.com: How did the surrounding market affect the design of the property?

Wilhelm: Because the property is located in Burbank, the design explored the filming industry. As a result of the revitalization and stimulation that has taken place in the area, the hotel needed to have a fresh, hip approach that would speak to millennials.”

Vopinek: In the 1920s, the motion picture business moved to Burbank, and today Burbank is home to hundreds of media and entertainment companies. The interior of the hotel pays homage to the entertainment and media industries that have shaped the city. The bar and lobby areas honor classic Hollywood icons, and are complete with images of Marilyn Monroe, Audrey Hepburn, and Bob Hope. Today, approximately 100,000 people work in Burbank every day. It is a business destination as well as a tourist destination. We needed a design that would attract the business traveler, so we went for a classic, clean, and modern approach with a public area that is spacious, eye catching, and inviting.  For the tourists and families visiting the area, we incorporated a fun outdoor space into our design, complete with a pool, outdoor BBQs, and an extra-large outdoor chess set.” – Jonathon Vopinek, vice president, asset management, R.D. Olson Development

GlobeSt.com: What was your inspiration for the design of the hotel?

Sue Ellen Langford: The interior design conveys a media centric concept that has a custom boutique feeling that taps into the nostalgic glamorous lifestyle of the TV and Movie insiders, while maintaining the reliability of a Marriott select service brand. The simple elegance of the finishes within a fresh contemporary context creates a perceived elevated value that still feels comfortable and approachable.

Bill Wilhelm was recently interviewed by Globe St. on his views on how amenities are playing a role in construction and development.

IRVINE, CA—Developers must approach each property creatively to generate the best customer experience, including combining property types or offering unexpected amenities, R.D. Olson Construction’s president Bill Wilhelm tells GlobeSt.com. We sat down with Wilhelm for an exclusive interview about how user expectations about amenities are shifting planners’ and developers’ approach to their properties.

GlobeSt.com: There is a growing expectation for amenities that were traditionally only accessible at certain property types to be “always available” to tenants wherever they go. How do you see this trend playing out in the market?

Wilhelm: Today’s customers expect more out of their properties than in the past. They want to combine where they live, work and play, accessing all their “lifestyle options,” whether they are at home, at the office, on vacation or at the mall. Developers must now take a step back and look to define user demographics and their specific needs before deciding what to develop in a certain market and, more specifically, at a given site. In the California market, land availability is becoming scarce, requiring developers to approach each property creatively to generate the best customer experience. Developers can achieve this goal by “combining” property types or offering unexpected amenities in a more traditional setting.

GlobeSt.com: Your current work at SmartStop’s Ladera Sports Center—which combines storage and recreation—demonstrates the fusing of property types to meet the growing pressures to provide more. How is this shift creating opportunities for developers?

Wilhelm: Ladera Sports Center is a great example of what is transpiring in many communities in California. One of our clients, Lutzky Associates Development, identified a need for both storage and sports facilities in the Ladera Ranch community for its client SmartStop and engaged us to construct a space that would meet those needs. The project that is currently underway combines storage facilities, an athletic complex and a new corporate office for SmartStop, making the most of the property and meeting the needs of this geographic area.

Across geographies, Master planners are looking for ways to combine property types or introduce new amenities to make the property “work harder” for its end users. For example, the Irvine Spectrum area has introduced medical-office buildings and senior-living options to complement the area’s existing office and retail offerings. By introducing these types of properties into amenity-rich properties, it creates convenience for all end users. Now, they can visit their doctor, run a few errands and see a movie all in one trip. These choices are not accidental. The value of a given property is greatly affected by its direct adjacencies, and developers and master planners are looking for ways to make all of their investments more valuable, all while creating a better experience for the end user.

GlobeSt.com: What are the construction considerations for this shift?

Wilhelm: For the Ladera Sports Center project, our goal was to combine three types of user needs—storage, recreation and office—and that end goal directed our construction efforts. High-end property types, such as recreation facilities and offices, require different construction than industrial properties, such as storage units. In a project that combines these property types, it is important to fully understand the developer’s vision and the users’ needs to create a cohesive look and feel through the interior and exterior skins, while mitigating costs. In cases where multiple property types are combined, it is imperative for a general contractor to be involved early in the process to contribute solutions that maximize property value and customer satisfaction, while maintaining the designers’ and developers’ original intent for the project.

GlobeSt.com: What does the future look like for this “providing more” trend?

Wilhelm: We will see an increased demand for multi-use property types, from both a convenience and a community standpoint. In efforts to grow communities, particularly in areas like Southern California, multi-purpose properties will serve specific neighborhood needs and increase engagement. With the cost of land and construction rising, developers need to be as creative as possible in their property development and planning to reach a wider range of users.

Irvine, CA - Thanks to the hard work and dedication of all the R.D. Olson Construction team, we were able to get on the ENR (Engineering News-Record) Top 400 Contractors List in the United States. This award is a great measure of the success R.D. Olson has seen in the last few years and exemplifies the organization's continuous pursuit of excellence and top notch service to the hospitality, restaurant, multi-family, and entertainment sectors. We debut on the chart at #374 but with steadfast dedication, R.D. Olson hopes to continue to climb the charts in 2016.
You can view the complete list of contractors here.

R.D. Olson was just announced among the Top Commercial Construction Companies in Orange County, CA. Up one spot from last year's #13, R.D. Olson is proud of its projects in the last year. Amazing completions of the Courtyard San Jose, Courtyard Irvine Spectrum, Hotel Marina Del Rey, 27 Seventy Five Apartments and Catherine's Terrace at the Descanso Beach Club, just to name a few, have helped propel R.D. Olson one step closer to becoming one of the largest general contractor firms in Southern California. With new incredible projects in the works now, 2016 should be an even greater success.

NEW APARTMENT BUILDINGS IN NORTH VILLAGE PUT FOCUS ON DESIGN By Roberto Luna, Jr., 6/4/15

The green and white metal building on Strathmore Avenue, surrounded by drought-resistant plants, stands out from other North Village apartments in the area.

Architects for these new apartments said they aimed to add to the variety of buildings in the North Village by using glass to make rooms look bigger and to make them more modern.

Students can now lease apartments at Studio 11024, Ophir Terrace and the new university apartment building on Glenrock Avenue.

Some students said they think the new buildings will be more comfortable than older ones, while others questioned their affordability and new design.

Bill Wilhelm, president of R.D. Olson Construction, said the goal was to construct trendy and eco-friendly apartments in the new building, Studio 11024, which is located at 11024 Strathmore Drive.

Wilhelm said the company redesigned the building’s exterior as new materials were introduced. He said he thinks changing from plaster and bricks to metal and wood improves the structure’s ambience.

Studio 11024 is intended to be high-end, but the building was still designed with students in mind, Wilhelm added. Read more here.

"Studio 11024" to Serve the University of California Los Angeles (UCLA) Community

Westwood, CA - R.D. Olson Construction is announcing the completion of Studio 11024, a 31-unit, five-story, 42,690-square-foot multi-family property in Westwood, California. The Irvine, California-based general contractor was selected by Phoenix Property Company, a Texas-based real estate development and investment company. R.D. Olson broke ground on Studio 11024 in September 2013.

Located two blocks west of University of California Los Angeles’ (UCLA’s) campus and a few blocks north of Westwood Village, Studio 11024 was built to cater to students, faculty and the academic community. Set back from the sidewalk, the project provides an indoor/outdoor experience, open space for landscaping, and parking built underground to engage pedestrians at the street edge.

"Studio 11024’s site context opposite Richard Neutra’s historic landmark, Strathmore Apartments, had a major impact on the project," said Bill Wilhelm, president of R.D. Olson Construction. "Our team was able to work with Lorcan O' Herlihy Architectsto successfully navigate the challenges of a 40-foot cross slope and building next to a historic landmark. To enhance the pedestrian experience, the building’s massing steps up from two-to five-stories creating a cohesive adjacency to the historic site."

Studio 11024’s exterior is marked by a fluted white metal skin with contemporary green accents, eco-friendly landscaping, and two, planted roof deck areas on the third and fifth floors. In addition to these urban garden settings, the building’s common area amenities include a fitness center with a yoga studio, a resident lounge, a business center, and secured, underground garage parking.

In addition to Studio 11024, R.D. Olson Construction is currently under construction on seven projects based in Los Angeles County including the Village at Calabasas in Calabasas; STK Restaurant at the W Los Angeles; the Hampton Inn & Suites in Glendale; Residence Inn by Marriott in Pasadena; SpringHill Suites by Marriott in Burbank; Califa Office Building in Van Nuys; and Bicycle Casino Hotel in Bell Gardens.

SAN ONOFRE, CA- R. D. Olson Construction hosts an annual Surf Camp each September to bring its team together with industry partners to enjoy a day of surfing and networking.

The beach party is a true "board meeting," complete with industry insiders and opportunities to show off wave-riding skills on the famous sets of San Onofre, or to learn new tips from professional surfing instructors.

This year more than 130 guests attended this networking event and beach party.  The day started with surfing and lessons, following by relaxing on the beach with shaved ice, live, Beach Boys-style music, refreshing drinks and a catered dinner.

The R.D. Olson Surf Camp provides an opportunity-and unconventional- venue to catch up with teammates and industry partners and to relax with friends and family.

Glendale, CA—R.D. Olson Construction has begun construction on Vista Investments’ Hampton Inn & Suites development in Downtown Glendale. Located at Colorado Street and Brand Blvd., the completed hotel will have 94 guestrooms. It is scheduled for completion in Spring 2016.

“The Hampton Inn & Suites Glendale project takes advantage of its environment to provide added value to the community at-large,” Bill Wilhelm, president of R.D. Olson Construction, tells GlobeSt.com. “Its location in the heart of Glendale provides the hotel the opportunity to be a part of the revitalization of the downtown area.”

The property is adjacent to the Americana at Brand, which recently underwent a renovation of its own to upgrade the top floor apartments into penthouse suites. The exterior of the 57, 327-square-foot property will be made of brick, stucco, metal and glass, which will align with the design of the neighboring properties.

Togawa Smith Martin also designed the interior of the hotel. “Through the orientation of the second floor pool and viewing deck, the mountain vistas have been factored into the overall design,” says Wilhelm. “The property’s L-shape, traditionally a difficult property type, also contributes to the project’s complexity. Our experience with carefully orchestrated urban infill projects is making it possible for us to build inches from surrounding properties without disrupting tenants’ daily activities.” The hotel will also include a two-level parking structure.”

The hotel sector has experienced a healthy turn lately with many developments underway. This includes R.D. Olson Development’s recent purchase of a 23,000-square-foot Hollywood land site to build a hotel. The site currently has a Jack-in-the-Box on the site with a five-year lease. R.D. Olson will use that time to obtain entitlements and building permits.

Irvine, Calif.—R.D. Olson Construction has begun construction on a five-story, 94-room Hampton Inn & Suites hotel on the corner of Colorado Street and Brand Boulevard in Glendale, Calif. The Irvine, Calif.-based general contractor was selected by Vista Investments to construct the hotel, which is slated for a spring 2016 completion.

“The construction of the Hampton Inn & Suites will continue the growth of Glendale’s vibrant downtown area,” said Tommy Marcum, project executive at R.D. Olson Construction. “The project joins developments like the adjacent, mixed-use Americana at Brand in continuing to transform Glendale’s downtown into a dynamic, regional destination with an increasing draw.”

The Hampton Inn & Suites’ common amenities will include an elevated outdoor pool deck with mountain views, lounge seating with an outdoor fireplace, a fitness center, and a lobby with an inviting entrance for guests and visitors along Colorado Street. The 57,327-square-foot hotel will have two levels of parking.

The hotel’s design elements feature brick, stucco, metal, and glass, complementing the urban design of neighboring properties. Togawa Smith Martin will serve as the architectural firm for the project.

In addition to the Hampton Inn & Suites in Glendale, R.D. Olson Construction is currently under construction on eight Los Angeles-based projects including the Residence Inn by Marriott at Los Angeles International Airport (LAX) in Los Angeles; Residence Inn by Marriott in Pasadena; SpringHill Suites by Marriott in Burbank; Strathmore multi-family project in Westwood; Califa Office Building in Van Nuys; Bicycle Casino Hotel in Bell Gardens; The Village at Calabasas in Calabasas; and the renovation of the W Hotel in Los Angeles.

ROBERT D. OLSON

Age: 58

Job: President and founder of R.D. Olson Development in Irvine

Bio: Olson began working in construction at 8, pulling nails for his stepfather. By the time he finished high school, he was working two construction jobs. At 23, he took $35,000 in savings and founded R.D. Olson Construction. He earned an MBA at USC. In 1997, he founded R.D. Olson Development, which specializes in developing hotels, as well as office, retail, multifamily and recreational projects. Olson lives in Newport Beach.

Why he is influential: In 2014, R.D. Olson Construction broke ground on the first hotel in Old Town Pasadena in more than 15 years, the latest in a spate of new hotels for the company. The company has six projects underway in California, and the Olson name is on hotels near the 55 freeway in Tustin, on Pacific Coast Highway just south of Huntington Beach’s Main Street and in Burbank, among others. Since 2011, he has launched 15 hotels in California and Maui, ranging from 106 to 250 rooms. They include the Courtyard by Marriott at the Irvine Spectrum, the Pasea Hotel and Spa at Huntington Beach’s Pacific City, and a boutique hotel on the site of the former Newport Beach City Hall in Lido Village.

Biggest challenge: Empowering employees. “As entrepreneurs, we think we have our foot on the gas pedal when actually it’s on the brake.”

Work philosophy: “To always be respectful, to be fair, and to reward your people for individual and company successes.”

Thoughts on entrepreneurship: Always look at where the economy is going, not where it is or has been.

Inspiration: His wife and four children. “Being a dad and husband is the most rewarding experience I can think of.” 

Can’t do without: His iPhone camera. “I’m always taking photos for ideas for our hotels.”

What’s next: “Creating environments that connect people of all ages.”

Quote: “Orange County has such great opportunities with the climate and our beaches, our higher education resources, (and) smart land planning. … I am very bullish for the long-term commercial real estate here.”

More business influencers: Scott Samuelsen, Frank Talarico, Barry Arbuckle, Noel Massie, Teresa Mercado-Cota, Shaheen Sadeghi, Lucy Dunn, Ada Briceño, Tony Moiso, Bill Gross, Daniel Ivascyn, Andrea Young, Emile Haddad, Palmer Luckey, Donald Bren, David Pyott, Leonard Chan

View the full list: 100 people who influenced Orange County in 2014

See full supplement:  11.10.14 OCBJ Supplement

- Jonathan Lanser

The industry fears staffing shortages, but unions think it's all about pay cuts.

What exactly is a “shortage” of construction workers?

Is it as developers and contractors see it: the lack of qualified managers and craftsman to handle increasing demand for construction work?

Or is it how labor envisions it: shrinking numbers of workers willing to work for low wages with limited benefits?

Whether you’re deft with the economics or paperwork of the building business or skilled with its craftsmen’s tools, a healthy rebound in creating new real estate means you are in demand. And that shift has supposedly become a production headache for construction bosses.

Ponder the employment trends, as counted by the Bureau of Labor Statistics:
• Nationwide, construction bosses employed 6.08 million in September, up 3.9 percent in a year and the highest total since May 2009.
• In California, construction employment is back at 697,100, up 164,400, or 31 percent, from post-recession lows. Roughly 1 in every 10 California jobs created in the recovery is in construction.
• And in Orange County, construction payrolls ballooned by 21,000, to a six-year high of 86,700, thanks to a hiring pace that’s triple the growth rate for all local employers.

The hiring spree may have tapped out the supply of available construction talent, whether it be for front-office work or positions in the field, according to a new study from the Associated General Contractors of America trade group. This analysis says construction bosses are scrambling to keep operations fully staffed – here and nationwide.

It’s more than a minor annoyance, the AGCA study’s key survey shows, as 36 percent of California construction bosses say they have a “hard time” filling both professional jobs and craft positions. That’s slightly more challenging than the situation nationwide, where 29 percent of executives surveyed expressed staffing headaches.

“The shortage of qualified construction workers is a real problem for the industry, which has shown impressive signs of positive growth,” says Bill Wilhelm, president of Orange County-based R.D. Olson Construction, a builder with 12 Southern California hotel projects either finishing or starting in 2014.

“Due to the slowdown of the past, numerous workers either left the industry or left the state of California and have not returned,” Wilhelm said. “Add on top of this, the next generation of construction workers is not sufficient to take the handoff from those craftsmen who have entered or are entering retirement.”

Construction unions believe that in many ways employers are to blame for their labor mismatch. The clout of California’s construction unions has been shrinking for decades. In 1985, 59 percent of state construction workers were unionized. By 2013, it was 16 percent.

Union leaders say tactics that construction bosses use to cut labor expenses make the industry a less desirable career choice and limit skilled-worker availability. Construction is a tough career, as the opportunity to work is volatile, with industrywide unemployment averaging 20 percent during the past four decades.

A study of California’s construction labor market by the Economic Roundtable, funded by the United Brotherhood of Carpenters, details a continuing move away from what they dubbed “formal” building work to what they consider traditional employer-employee relationships.

A growing number of California builders – notably homebuilders – use independent companies to staff job sites. Those subcontractors employ – properly and not – growing ranks of “independent contractors.” Those independent workers typically don’t get many of the benefits and legal protections associated with regular jobs, with employer compensation savings running as high as 30 percent.

The union study claims there’s an even larger workplace – not so secret but often off the books – where salaries can be as little as half of the norm. The average California veteran construction worker had a $32,800 salary in 2012, the study said.

Roughly 140,000 California construction workers are in these so-called informal positions –roughly 1 in 6 of all construction staff members, according to the union study. These workers are either improperly categorized as independent contractors or in under-the-table payment situations.

By the union’s math, “informal” workers earned $1.2 billion less in compensation in 2011 vs. what they would have gotten in “formal” workplace arrangements. And it’s not simply salary. Missing dollars also would have helped fund several state worker-protection programs.

To union officials, simply meeting labor-law requirements could improve worker supply.
“There’s no real worker shortage,” says David Kersh, executive director of the Carpenters/Contractors Cooperation Committee.

CREATING SUPPLY

Where are the new construction workers coming from?

Consider Danny Dean. Two years ago, he was new to California, fresh out of the military and looking for work. Construction was in his blood; his dad was in the electrical trades back in New Jersey.

Dean started doing carpentry for a homebuilders’ subcontractor. After a year, he switched to the union side of the equation, as an apprentice carpenter working commercial construction. One of his first unionized jobs was helping build an office tower at Fashion Island in Newport Beach.

Dean, 24, who lives in Lake Forest, has enthusiastically embraced a noteworthy job-enhancement program by his union: skills training done though local community colleges at union-funded sites. Dean last week was training at a new, 107,000-square-foot facility off the I-5 in Buena Park.

“It’s crazy what I learn here,” says Dean, taking his fourth weeklong training session in a year. “I can actually take this stuff and put (it) in place back at work.”

This training is part of a union program, largely funded by a slice of the compensation paid by contractors, that brings novices up to journeyman status, and keeps veteran workers up-to-date with the latest skills, tools, materials, safety practices and regulations required for today's construction projects.

The schooling facility, one of nine in Southern California for the United Brotherhood of Carpenters, offers both classrooms and an indoor construction site for realistic hands-on lessons in outdoor structures, highways and office-space work.

“We want them to see there’s a career here,” says Thomas Rooney, coordinator for the union’s Southwest Carpenters Training Fund.

Union officials know that in today’s cost-conscious and extra-competitive world, their worker members have to justify the higher salaries – and benefits – they get. The contractors who hire union workers often battle for big-dollar contracts for major real estate or municipal projects. Profiting from that huge-scale work can hinge on worker skills.

A typical apprentice in the program takes a week off from work roughly once a quarter for four years to reach the coveted journeyman’s status. The syllabus exposes workers to a wide range of skills and construction techniques within their own slice of the trade, loosely delineated by indoor or outdoor work.

Despite the overall construction rebound, enrollments in the carpenter training program across six Western states is about 6,000 versus up to 14,000 during the real estate boom.
“That it hasn’t increased more surprises me,” says the carpenters union’s Rooney.

WHO’S IN DEMAND

Project manager positions were the toughest construction office jobs to fill in California – 61 percent of bosses surveyed put it atop the list, the contractor survey shows. Next were engineers and estimating professionals, both problematic, at 41 percent of the shops polled.

Out in the field, iron workers and plumbers were California’s hardest to fill – cited by two-thirds of employers. Carpenters were next toughest, with 59 percent of state employers saying they have trouble finding adequate labor.

Construction bosses say they using extra subcontractors and staffing companies to fill worker gaps. And 27 percent of California bosses said they were turning to unions for help in finding workers versus 9 percent nationally.

Other labor-boosting strategies include moving work away from the job site, the contractor survey shows. Thirty-five percent of California bosses choose prefabricated parts to help with the labor shortage (versus just 13 percent nationwide.)

This imbalance should add up to a seller’s, i.e. worker’s, market, with “prices” (wages) rising accordingly. Curiously, the survey showed compensation seems to be on the rise more away from California –as well as noticeably more for front-office staffs.

In California, 55 percent of construction bosses said they hiked pay for professional staffs; 26 percent upped benefits, and 21 percent boosted bonuses. This pretty much matches the national trend.

At the job site, though, pay is up at only 24 percent of California employers (vs. 59 percent nationally); benefits and/or bonuses are up at 14 percent of firms. Overtime pay rose at 10 percent of the employers (vs. 18 percent nationally.)

No executives surveyed by the contractors in the state saw the situation getting better any time soon. Thirty-three percent of bosses think it’ll become harder to get skilled craftsmen; 45 percent think challenging hiring conditions will continue.

“The shortage of construction workers has begun to push construction costs upward,” says Olson Construction’s Wilhelm, who adds that extra labor costs come on top of a 3 percent jump in the price of construction materials.

It could be worse, I guess. Think of the trucking trade, facing its own staffing shortages – as much as 40,000 drivers short today.

That gap has the potential to grow fivefold by the next decade.

Seems some truckers are being drawn to the reviving construction industry. For many, swinging a hammer close to home beats hours alone on the road.

– Greg Hardesty

BOB OLSON
CEO and Founder
R.D. Olson Construction

Bob Olson was 9 years old when he started pulling nails out of two-by-fours.

At 58, the Newport Beach resident has definitely progressed in his 35-year construction career.

The CEO and founder of R.D. Olson Construction in Irvine is, along with partner Pacific Hospitality Group, in the midst of perhaps his splashiest project yet: The Pasea Hotel & Spa, a 250-room, eight-story resort (a rooftop bar is just part of the fun) near the Huntington Beach Pier. It’s set to open in spring 2016.

“We’re definitely pushing the envelope compared to what we’ve developed in the past,” says Olson, who once built a restaurant for Sonny Bono in Hollywood in the ’80s and became good friends with the former singer and congressman. “It’s a hotel that Orange County has never seen before.”

That’s a bold statement, but Olson has made a career out of thinking big and outside the box. His company weathered the recent recession in grand style, completing nearly a dozen hotels in 2012-13. R.D. Olson recently opened the 210-room Courtyard Laguna Hills Hotel near the Irvine Spectrum – featuring a new high-tech lobby and stylish bistro, and a 75-foot lap pool – and this year broke ground on a six-story, 221-room Courtyard by Marriott hotel near Disneyland. The general contractor is also planning a couple of hotels in Silicon Valley and another in the Waimea Valley, on the North Shore of Oahu.

Olson credits his involvement with the Young Presidents’ Organization, in which business leaders get together to schmooze, for giving him a “great perspective”on how to run a business. He also keeps his success in perspective by maintaining a balanced family life. One of Olson’s two older children, Melissa, 31, is a sales and marketing executive for Marriott. Older son Bobby, 34, is a real estate lawyer. Olson and his wife, Christyne, have a 10-year-old daughter, Charlotte, and an 8-year-old son, Sutton, who’s probably already well into pulling nails out of two-by-fours.

144-Room Hotel is First Ground-Up Hotel Project in Old Town Pasadena in 15 Years

Pasadena, CA - October 9, 2014 - R.D. Olson Construction has begun construction on a five-story, 144-room Residence Inn by Marriott extended stay hotel in Pasadena, California, the first hotel to be constructed in Old Town Pasadena in more than 15 years. The Irvine, California-based general contractor was selected by owner Fair Oaks Hotels, LLC to construct the $30.5 million 94,091 square-foot hotel which is slated for completion in fall 2015. R.D. Olson has been an active builder of hospitality properties over the past year, with more than six projects currently under construction in California.

The hotel’s guest amenities will include more than 1,000 square-feet of meeting space, an on-site market, elevated deck with a pool and spa, breakfast area, fire pit, exercise room and fully equipped business center. Awbrey Cook Rogers McGill Architects will serve as the architectural firm for the project with interior design by Seattle-based Degen & Degen. Design elements are a playful rendition of the arts and crafts heritage of Old Town Pasadena, blending iconic period gestures with modern detailing. Marriott’s latest Gen 9 Design will showcase contemporary furnishings within a traditional setting, incorporating natural materials such as brick, stone, hand glazed tile and dark wood.

“This construction project sits at the gateway to Old Town Pasadena and will take the lead in bringing more available rooms to this destination city,” said Bill Wilhelm, president of R.D. Olson Construction. “It is exciting to contribute to an area like Old Town Pasadena that is so steeped in tradition.”

The hotel’s interior and exterior design will weave in subtle Mediterranean architecture and design through the use of parapet and tiled gable roofs, hipped-roof corner towers and plaster walls. Additionally, a variety of window openings are highlighted, including groupings of punched, multi-story windows which allow ample natural light into the building.

R. D. Olson most recently broke ground on the 250-room Paséa Hotel & Spa in Huntington Beach, Calif., and the 221-room Courtyard by Marriott in Anaheim, Calif., and is in the process of a significant hotel conversion near Los Angeles International Airport. The firm also completed the 210-room Courtyard by Marriott Irvine Spectrum in June. Earlier this year, R.D. Olson Construction was honored with the Icon Award from Marriott’s Design and Construction division for excellence in construction.

About R.D. Olson Construction

Founded by Bob Olson in 1979, R.D. Olson Construction is one of the top 50 general contracting firms in California. R.D. Olson Construction is a premier builder in the hospitality industry for several national hoteliers, including Marriott, Hilton, Hyatt, Ritz Carlton, and Starwood. R.D. Olson Construction is also experienced in multi-family housing, entertainment, retail, restaurant and corporate facility projects. www.rdolson.com

By Bill Wilhelm

As the lines between leisure, homes and office spar blur, so too, do the amenities included at these properties.

With the convergence of work and play prevalent in all sectors of the community and among all generations, it is now more important than ever that properties reflect that reality and serve customers’ desired amenities. Gone are the days when an apartment complex was just a place to call home. Today's multifamily communities must not only provide excellent housing options, but are also required to serve as entertainment facilities and offices. Even offices, which previously were just a hub for work, must now provide gyms, nearby shopping areas and other comforts to make it feel like a home away from home. As a result, it is imperative that property-owners and developers satisfy the next generation of residents and attract new customers, by incorporating high-style, high-function common amenities into their projects.

R.D. Olson Construction has seen a significant transformation in the desire and need for amenities that are not only functional, but also aesthetically pleasing, across these sectors. In the past, apartment communities would be less concerned with providing outdoor entertainment areas, and more concerned with providing spacious units. The same theme is prevalent in the hospitality sector. Now, even in the select service arena, hotels want to provide creature comforts like in-room Netflix streaming and gourmet coffee stations to their guests.

An example of this type of transformation can be seen in 27 Seventy Five Apartments in Costa Mesa, Calif. This established apartment community had to transform to remain competitive in the marketplace and meet resident demand. A large community building was added that featured indoor-outdoor entertainment space, a grilling area, a screening room, and plentiful lounge seating.  This created the resort-style living well-suited to match residents' needs.

Multifamily housing is embracing this trend in other ways, too. Some communities have installed AmazonFresh lockers on their properties, allowing residents to have fresh produce, dairy and meat delivered directly to their doors at prearranged times. Other communities let residents control their units’ lighting, heating and cooling via smartphone. This essentially provides tenants with instant access to the heartbeat of their homes, even when they're away.

Contrary to popular thinking, this demand is not only prevalent in the Millennial generation, but among customers of all ages. Many master-planned communities that cater to the senior community are constructing new amenities as well. These include large pool areas with bars, barbecues and bocce courts, in addition to common clubhouses to host parties and events, in order to keep up with market demand. Beyond the capacity for entertainment, many communities are adding features like fitness centers and yoga rooms to also put health and wellness benefits at residents’ fingertips.

Households with residents aged 55 and older could reach as high as 46.6 percent of the U.S. population by 2020, according to the National Association of Home Builders (NAHB).  Master-planned communities will look to offer amenities that support the niche interests of this demographic on-site, making them more attractive to this booming demographic.

As a result of the demand for upscale amenities, developers and property owners must choose the right team in order to create communities and properties that meet customers' needs. In order to do this, established properties must adapt, while new properties must be constructed with these needs in mind.  As the lines between sectors and property types continues to blur - with the office becoming a place for leisure and a retail center functioning as an off-site office - it is critical to understand how you can create and construct properties that effectively meet the needs of clients and customers.

Labor Day has come and gone, which means we have start thinking about work again. We asked some OC real estate execs to tell us about their first-ever jobs. (Everyone remembers those jobs, usually more fondly than they deserve.)

R.D. Olson Construction prez Bill Wilhelm says that at 15, he convinced the local Taco Bell manager he was reliable, and she agreed to hide him in the back, frying taco and tostada shells for the first six months. Once he turned 16, he had the opportunity to work the cash register and manage the front line, prepping orders and getting them out to the customer. “After a year, I took over the assistant manger's duties and then quickly stepped into the role of manager,” he tells us. “I even hired my older sister, which resulted in a food fight, but mostly we worked really hard.”

By Carrie Rossenfeld

ORANGE COUNTY, CA—We saw it during the recession out of sheer necessity, but industry experts say now we’re seeing it for a different reason: apartment dwellers doubling and tripling up within the same unit in Orange County. Bill Wilhelm, president of R.D. Olson Construction, tells GlobeSt.com that during the downturn, the poor economy and suffering housing sector were to blame, but today it’s because rental rates are rising—particularly in the apartment communities with state-of-the-art common amenities—and tenants are willing to sacrifice some space and privacy in order to live affordably in these communities.

Breaking down the cost of living in a class-A apartment among two or three individuals allows them to live in a nicer property that goes for a higher per-month rental rate, says Wilhelm. “We’re also seeing it in student housing. Where we used to see two or three individuals in an apartment, we have a property that has four or even six beds in some rooms. They’re stacking beds to be able to fit more tenants.”

The solution works with newer, higher-quality properties, but some class-B landlords are finding that tenants still aren’t biting, says Wilhelm. “In some situations, landlords have not been able to get the rates they thought they were going to get. From a renovation/construction standpoint, we’ve seen a couple of projects where the developers were trying to raise rents by $500 to $1,000 a month and add amenities. But the older buildings aren’t able to pull that off.”

Even in some of the more exclusive regions of Orange County, like Newport Beach and Costa Mesa, simply adding amenities to older buildings is not enough for tenants to justify the higher rents, says Wilhelm. “If the property doesn’t have enough characteristics to feed what tenants are lolling for today, it’s too costly to do a renovation and upgrade.”

When will the multifamily-unit bubble burst, he asks? “There are different statistics, even across the board. Some individuals think we’re there, others think we have a little ways to go and others think we have a long way to go. It comes back to geographic location."

It’s too early in the game to know if the doubling-up trend will impact multifamily design, Wilhelm adds. “I don’t think there are enough studies to try to answer that yet. If you increase unit size, is the market going to allow you to charge more? On the flip side, you can keep the same size units and make the bedrooms a little larger, but shrink down some of the living areas. But you don’t really want to go there because that’s what’s selling. Lifestyle living is what people are looking for today.”

By Carrie Rossenfeld

IRVINE, CA—Not every apartment amenity will work in every submarket, so it’s important to know your audience before incorporating features into new buildings, says Bill Wilhelm, president of R.D. Olson Construction. As GlobeSt.com reported last week, the firm recently completed extensive renovations on 27 Seventy Five Apts., a 468-unit garden-style apartment community in Costa Mesa, CA, owned by UDR Inc., in addition to several upscale recreation buildings for the Rancho Mission Viejo Co. in its master-planned communities Sendero and Gavilan in Rancho Mission Viejo, CA. We sat down with Wilhelm to discuss the evolution of these amenities and what developers need to know about the latest apartment features.

GlobeSt.com: Which came first regarding the demand for the high-style, high-function amenities you’ve incorporated into these properties? Did developers begin to offer them, so the market caught on and began to demand them? Or did residents begin to ask for these amenities on their own, and developers began to listen?

Wilhelm: The market has had a need for some time now for a change in design amenities. We realized that we developers need to start listening to our tenants. Who is the end user? Who is our client? What is their need today vs. yesterday, and what can we offer them I our locations? At Rancho Mission Viejo, which is geared toward an older resident, we have different amenities than at 27 Seventy Five Apts., which appeals to the younger generation. The younger group wants an indoor/outdoor environment, nice cabanas, fire pits, large-screen TVs, and an exterior nightclub kind of feel. This drives up the rental cost, but renters in their early 30s who want to go to a wild place are willing to spend an extra $500 to $1,000 a month knowing they’ll have those amenities. That’s money that would have been spent elsewhere, but now they don’t have to.

GlobeSt.com: That’s a good point—how are these high-end amenities affecting rental rates or buy-in costs for residents?

Wilhelm: What we are seeing is what the nicer amenities are doing. They’re taking an older existing property that might be a C property and moving it up into the B+ range, or maybe even an A+ range. The cost increase is based on location: in Silicon Valley, renters may expect to pay $1,000 to $2,000 a month extra, but in Orange County that will be less in some properties. In the Orange County rental market, the Irvine Co. has done a phenomenal job with gorgeous properties, but they get higher rents on the outskirts of the market because of what they offer. It justifies the value.

It can work the opposite way, too. I’ve seen a couple of deals where a property was bought and the renovation process was completed with the expectation that it would drive up the rental rates, only to find that it’s not always so. It depends on the zip code. Developers have gone through a learning curve and seen that geography plays a major role.

By Carrie Rossenfeld

Residents of all ages are demanding high-style, high-function common amenities, according to R.D. Olson Construction. The firm recently completed extensive renovations on 27 Seventy Five Apts., a 468-unit garden-style apartment community in Costa Mesa, CA, owned by UDR Inc., in addition to several upscale recreation buildings for the Rancho Mission Viejo Co. in its master-planned communities Sendero and Gavilan in Rancho Mission Viejo, CA.

The 27 Seventy Five Apts., for which the locally based construction firm has served as general contractor, has been repositioned with contemporary upgrades and features. All apartment units and exteriors at the project have been renovated, infrastructure and amenities throughout have been upgraded, and the firm has also built a new, 14,000-square-foot community building and reconstructed the 3-acre lake that functions as the centerpiece of the community. Peak West Development served as construction manager for the project.

According to Bill Wilhelm, president of R.D. Olson Construction, “This project’s combination of construction and renovation elements, along with the need to complete the work while keeping the complex operational for residents, were challenges that our team was able to tackle head on. The result is a modern, amenity-rich apartment community that will suit the needs of the next generation of residents.”

 The updated apartments feature sleek, open living spaces with contemporary lighting, modern kitchens, luxurious bathrooms and ample windows. Community amenities include upgraded eco-friendly landscaping, lighted sport courts, a pool and outdoor lounges and grills. The newly constructed community building features a rooftop lounge, game room, conference and business centers, fitness facilities and a great room with a fireplace. The project was designed by Costa Mesa-based Newman Garrison + Partners.

 At Rancho Mission Viejo, R.D. Olson has completed four recreation buildings: Hacienda, Ranch House, Guest House and the Outpost. The 11,000-square-foot Hacienda caters to senior adults and includes a luxurious great room with bar, yoga studio and fitness center, outdoor cabanas and bocce courts. Ranch House is a 5,400-square-foot clubhouse that features an exercise room, pool, spa and water-play area for kids. The 5,800-square-foot Guest House includes a community room and full catering kitchen for residents; the Outpost, a 2,200-square-foot clubhouse, features a pool and spa, complete with a bar, outdoor cabanas and bocce courts, as well as a barbecue and hammock areas.

GlobeSt.com was unable to reach Wilhelm prior to deadline to discuss the evolution of high-style amenities for residents, but stay tuned for an upcoming interview with him in which we explore the subject more deeply.

Listening to residents in order to understand their needs and wants is crucial in commercial real estate development. As GlobeSt.com reported earlier this month, understanding what each community needs and what their unique challenges are is key to a successful planning, according to Brian Judd, principal of design, planning and environmental firm PlaceWorks.

by Kristian Seemeyer

It’s one of the biggest states in the country and the centerpiece of the West Coast. In a market as large and varied as California, it’s only fitting that the state’s commercial real estate leaders are also larger than life. The next few pages feature some of the individuals who have helped to shape the Golden State’s CRE market, from Del Norte and San Francisco to Imperial and San Diego.

Robert Olson is founder, CEO and president of R.D. Olson Development and founder and CEO of R.D. Olson Construction. Based in Irvine, his firms represent more than three decades of experience in development and construction.  Recognized as leaders in developing and constructing hotels, the companies’ experience encompasses office, retail, multifamily and recreational projects. Olson guides the strategic vision for R.D. Olson with an active, hands-on approach toward every facet of construction and development. The firms’ development and construction projects span the continental US and Hawaii, and the client list includes Marriott, Kimpton Hotel & Restaurant Group, Starwood Lodging, UDR and Affirmed Housing Group, among others. R.D. Olson Development was most recently named Developer of the Year by Marriott International and both firms were recognized with the ICON Award from Marriott’s Architecture and Construction Division.

Read full article here: REForum June 2014 CA Icons

By Kari Hamanaka

Dirt’s turning at a rapid clip for Orange County’s hotel landscape, and there may be no other local company that reflects that activity more than R.D. Olson Construction. 

The Irvine-based construction company founded and headed by Bob Olson—also chief executive of R.D. Olson Development— is nearing completion on a 210-room Courtyard by Marriott at the Irvine Spectrum.  The company is also working on another Courtyard by Marriott, this one with 221 rooms, in Anaheim. And it’s scheduled to break ground in June on a 250-room hotel at the Pacific City mixed-use project in Huntington Beach. 

Last week, it appointed Bill Wilhelm, former executive vice president, to take on president duties in a move reflecting its growing construction business. He now oversees hotel projects, among other activities.

But it’s not just R.D. Olson that’s building in the hospitality segment. 

The long-awaited Great Wolf Lodge broke ground last week on a water park and hotel in Garden Grove near the  Disneyland Resort that’s expected to add 600 rooms to Orange County’s hotel supply. 

The project “is a huge testament to the strength of the OC market,” said Alan Reay, president of Irvine-based Atlas Hospitality Group, a real estate broker and consultant.  And earlier this month, DKN Hotels of Irvine announced the opening of a 120-room SpringHill Suites in Anaheim.

Improvement projects also continue. The 335-room Wyndham Irvine-Orange County Airport recently announced the completion of its multimillion-dollar renovation that included updated guest rooms with new bedding and redesigned bathrooms, and a refreshed lobby and fitness center.

The 485-room Irvine Marriott announced the completion of its $5 million lobby and lounge area makeover in February. The hotel, under Bethesda, Md.-based parent Marriott International Inc., wanted to make the brand relevant to a new generation of travelers looking for more contemporary settings and options in how they use the hotel to dine, relax or hold business meetings. 

The project is also at the heart of a push to create a more downtown feel for the hotel to act as a community gathering place for not just travelers but also residents and workers
in the surrounding area, General Manager Scott McCoy told the Business Journal earlier this year.

Irvine Marriott is expected to begin renovation work on guest rooms next year—the final phase of a three-year improvement project expected to cost $12 million to $13 million.

Reay said activity for the hospitality sector is picking up when compared to the recession period. 

“The market is back, and it’s back very, very strong. Revenue per available room is approaching an all-time high in Orange County, and we’ve had very, very little new supply; so I think that we’re going to see more hotel rooms being constructed just because values are reaching such a point that it makes sense for people to begin building again.”

Few of the county’s construction and renovation projects are reflected on this week’s Business Journal list of the largest hotels in Orange County, which cuts off with No. 50,
the 250-room Crowne Plaza Fullerton-Anaheim.

The largest hotels here combined for a workforce of 13,654 local employees.  That’s roughly flat compared to the year-ago period. 

Changes in worker counts were slight, with the largest worker decline at No. 6, Hotel Irvine Jamboree Center, formerly the Hyatt Regency Irvine, which shed 55 people over the 12-month period. However, the shift resulted from the hotel’s  transition from a major brand to a boutique property late last year. 

Most of the former Hyatt Regency employees stayed on with Hotel Irvine, but some chose to stay with the Hyatt company, an Irvine Company spokesperson said.

by Mary Ann Milbourn

Bob Olson doesn’t have a crystal ball about the timing of new hotels, but he may have something even better – 35 years of hard-won experience in the construction and development business.

Since 1979, when he started R.D. Olson Construction, Olson has been through every recession, every construction boom and every bust. He learned to see the telltale signs of recovery when everyone else was looking the other way.

So in 2010, as the hotel industry retreated into survival mode, Olson landed his first new project since cutting his pipeline in 2006 in advance of the recession. It was a Courtyard by Marriott in Oceanside.

“Truth be told, a lot of people thought it was the wrong move,” Olson said. But hotels have a 2 1/2-year lead time, and “I thought the economy would turn.”

In 2012, when the industry was just beginning to ramp up again, Olson completed four hotels, followed by seven in 2013. It was the beginning of an industry rush. Altogether, 20 hotel projects are in the pipeline in Orange County and 42 in Los Angeles, according to STR, a hotel industry research firm. That is the most local hotels underway since 2009.

Current projects on the drawing board include:

• The new Grand Wilshire Hotel in Los Angeles. A mixed-use office, retail and hotel project, the 73-story, 900-room development is being touted a s the largest building west of the Mississippi River.
• In Anaheim, 14 hotels are in various stages of planning and construction. A 120-suite Springhill Suites by Marriott opened March 1.
• Olson is putting finishing touches on the eight-story, 210-room Courtyard by Marriott in the Irvine Spectrum, due to open in June.
• Olson plans to break ground in June on the eight-story, 250-room Pacific City Hotel in Huntington Beach. It should open in 2016.
• Olson was just selected to build the Lido House Hotel, a boutique property on the site of the former Newport Beach civic center that’s in the early stages of planning.

This kind of building frenzy typically has marked a peak in the past, with the industry soon after finding itself with a glut of rooms.

Jan Freitag, a senior executive at STR, cited a quote by the late hotel developer John Q. Hammons about the industry’s tendency to rationalize why there isn’t an oversupply: “The industry isn’t overbuilt, it’s underdemolished.”

But even with all the construction underway, hotel demand nationwide appears to be ahead of supply for the next year or two, Freitag said.

STR data show new-room supply is expected to increase 1.2 percent this year and 1.6 percent in 2015. The supply average over the past 25 years is 1.9 percent.

By STR’s count, U.S. room demand is expected to continue to outstrip supply, increasing 2.3 percent this year and 2.1 percent in 2015.

“If the American economy grows and GDP grows and unemployment declines, room demand is going to continue to increase,” Freitag said.

Alan X. Reay, an Irvine hotel consultant and broker, noted the industry fell far behind demand over the past five years. He said there also are some built-in market constraints in Southern California, including lack of available land and financing, as well as regulatory hurdles.

With hotel values increasing – Atlas reported a 37.6 percent increase in the total dollar volume of Southern California sales last year – and the average hotel property now 30 years old, Reay said, there is also more interest in tearing down properties and rebuilding from the ground up, which will replace existing rooms.

Kory Kramer of Irvine-based Pacific Hospitality Group, which is in a joint venture with Olson to develop and operate the Pacific City Hotel, thinks a distinction needs to be made between four-diamond luxury hotels like the one in Huntington Beach and select service properties like Courtyards by Marriott and Residence Inns. Select service properties provide limited service and include extended-stay and all-suite hotels.

The Pacific City Hotel, a project that was eight years in the making, will cater to a different business and leisure clientele that demands first-class service and amenities.

Every room will have an ocean view and the latest in Wi-Fi and television technology. The hotel will feature a top-of-the-line spa and fitness center, an outdoor courtyard with water features and fire pits, one of the largest ballrooms in Orange County, which will open out to an oceanfront event lawn, and a rooftop restaurant and bar overlooking the ocean.

It will be part of Pacific Hospitality’s Meritage Collection of upscale properties, which includes the Estancia La Jolla Hotel & Spa, the Balboa Bay Resort, the Bacara Resort & Spa in Santa Barbara and The Meritage Resort and Spa in Napa.

Because few coastal sites are left to be developed, Kramer said, Pacific City is the only four-diamond luxury, ocean-view hotel project currently planned on the California coast.

“It’s the preeminent principle of real estate – it’s all about location,” Kramer said.

5 new hotel must-haves

Technology, lifestyles and changing guest tastes mean hotel builders have to consider a whole new range of amenities at their properties. Here's R.D. Olson founder Bob Olson's guide to five hotel essentials:

• Wi-Fi: You can't just have Wi-Fi, it has to be free and fast.

• Guest space: A big desk against a wall doesn't work in the laptop age. You need flexible furniture that allows you to work anywhere – on your lap, on the couch or in bed.

• Plug-ins: The average guest has three electronic devices so you need plugs-ins throughout the room.

• Social areas: Call it the Starbucks syndrome. People don't want to stay in their rooms. Lounge areas now have media pods and other spaces where people can have interviews or work together or where guests sit alone but hang out among people.

• Fitness activities: A treadmill and a few free weights won't do anymore. Guests expect the latest, like CrossFit equipment.

by Roger Vincent

R.D. Olson Construction is commencing construction on a $44.5 million hotel project, the Residence Inn by Marriott at Los Angeles International Airport (LAX) in Los Angeles, Calif. The general contractor was chosen by new owners, SVI LAX to convert the 12-story office building to a 231-room, extended stay hotel.

The new hotel will feature the Residence Inn by Marriott’s latest Generation 9 design, with guest amenities that include a pool, spa, fire pit, sports court, exercise room, business center and meeting space. The hotel entrance will include a backlit, free-flowing sphere porte cochère to welcome guests. The new Residence Inn will also feature 3,000 square feet of retail and restaurant space.

“Complex construction projects like this office-to-hotel conversion give R.D. Olson the opportunity to put our diverse construction experience and hotel industry expertise to great use,” said Bill Wilhelm, executive vice president of R.D. Olson Construction. The project is slated for completion in January 2015.

R.D. Olson has constructed over 1,000 hotel rooms in the Southern California market over the past three years. The firm most recently broke ground on the 170-room SpringHill Suites by Marriott in Downtown Burbank, Calif. R.D. Olson is also currently collaborating with Marriott International on a 210-room Courtyard by Marriott in the Irvine Spectrum Center.