Reading about a company that has been in business for nearly 40 years is not extraordinary. But hearing that it is growing and thriving under the current economic conditions could be considered remarkable. However, Arellano Construction Co. has been pretty remarkable from the beginning.
Agustin Arellano started his construction company in 1973 to handle interior contracting work in the Fort Lauderdale area. Since that time it has grown to become a strong player in the Florida construction market, including health care construction.
In the early 1980s, Arellano had a chance to bid on a small hospital expansion, found that he was fascinated by the intricacies of the health care business, and decided to focus attention on the health care construction services market. And in 2008, as a result of the company’s success, Arellano entered an alliance with OHL, a leading, global health care firm. Two key members in the success and growth of the company have been Frank Vilar, Vice President of Construction, and Arthur Hoynack, Vice President of Preconstruction. They both started with the company in the very early ’90s.According to Vilar, that alliance with OHL has worked out extremely well. "It has given us the opportunity to pursue several larger projects at the same time," he said. "Also, given that OHL is one of the world’s largest health care contractors, it has enabled us to expand our technical and financial resources, including the ability to offer public private financing as a delivery method."
One of Arellano’s current projects is the Institute for Healthy Living and Research in Jupiter. Vilar explained that the Institute is a $60 million elder care facility project being constructed on a 10-acre greenfield site. The project will include five buildings: a diagnostic building, a skilled nursing facility, an assisted living facility, a memory impairment center, and an energy center. Pre-construction work is underway, and site clearing and civil construction is expected to begin mid-January."This will be a fast-track project in three phases. The diagnostic, skilled nursing, and energy building will begin in March 2012. The assisted living building will begin in April, and the memory impairment building will begin in May. The duration of construction is 16 months, but all of the buildings are planned so that they will be completed together."
Hoynack said the client for this project is Palm Health Partners, which has developed a number of similar facilities in South Florida.
Another project Arellano is currently working on is in Northern Florida, the Green Cove Springs Senior Center, just south of Jacksonville. It is a senior council on aging center that provides both in home care and adult day care. It also offers programs that assist with food and nutrition to the local area seniors. Arellano broke ground this past summer and expects to complete construction in fall 2012.
But along with health care, Arellano continues to engage in work in other areas. For example, Hoynack said the company pursued the $130 million renovation/construction of the Florida Turnpike Plazas. "We are performing this design/build project for the concessionaire who, in turn, has the contract with Florida’s Department of Transportation. This project increased our profile in the state of Florida instantly. While it is not a health care project, it was a once-in-a-lifetime opportunity and we went after it."How has Arellano managed to maintain its success and grow in these tough economic times? Vilar believes it’s because the firm has always remained loyal to its clients in the health care and institutional fields—the core markets. "At the beginning of the condo boom, we made a decision that we would not pursue that market, but rather tried to improve our processes with advanced technology; refined our health care subcontract base; and continued our constant search for quality, experienced health care project managers and superintendents. As the market is beginning to show some strength, we feel we are well-positioned to continue our growth."
In fact, Arellano recently opened a new office in Orlando. Of the decision, Hoynack commented, "We always intended to expand in the state of Florida and felt the next logical step was in Orlando. (Along with Miami), our other offices are in Jacksonville and Lake Worth. For now, we feel we can cover the state with our current set-up, but if we open another office it will be on the Florida West Coast."
Even with all of its accomplishments, Arellano is looking to the future. They both agree that their goals are to continue to improve the company’s delivery process, expand its ability to better serve its clients, and continue to expand at a moderate and controlled rate.
Don’t look for Arellano’s success or growth to diminish any time soon.
