Irvine-based R.D. Olson Construction expects its annual revenue to grow by 20% to 30% as developers move forward with projects that were delayed. These delays stemmed from high borrowing costs and uncertain construction prices, according to statements made by the company.
William “Bill” Wilhelm, who became president of R.D. Olson Construction in 2014, has overseen a period of significant expansion for the firm. Before his appointment, the contractor and construction management company generated approximately $60 million annually and relied on its sister company, R.D. Olson Development, for about 80% of its projects. More than a decade later, the company’s yearly revenue now ranges between $250 million and $345 million. R.D. Olson Development, a luxury hotel developer, currently accounts for only 8% to 12% of the construction company’s business.
Wilhelm indicated a new phase of growth is anticipated. This growth is partly fueled by several projects, including the $116 million Senoa Resort and Spa in Sedona, Arizona. Construction on the 70-room, villa-style wellness resort, located on 11.5 acres at 150 Schnebly Hill Road, began in September. The resort, which is expected to open in late 2028, includes plans for 29 freestanding buildings, a 5,500-square-foot spa, a two-story restaurant, and 3,200 square feet of meeting and event space. This project, while outside of Irvine, contributes to the overall financial health and operational scope of the local company.
Other contributing projects include the $62 million De Soto Apartments, a 207-unit affordable housing project in Woodland Hills, and the $33 million, 100-unit Ivy Park at Arcadia, an assisted living and memory care community. Both projects broke ground in January. The company also began work on a $30 million hotel renovation in Anaheim and the transformation of the Hotel Palm Springs into an upscale boutique hotel.
Wilhelm noted that approximately 12 to 15 projects had been slow to start but were expected to commence between August and November of this year. Founder Bob Olson, who established his contracting company in 1979 and remains chairman, described Wilhelm as having “incredible tenacity” and being a “critical part of the culture at RDOC to be the best in what we do.” Olson emphasized the company’s focus on delivering quality and reasonably priced hospitality, multifamily, and assisted living developments across Southern California.
Wilhelm’s initial goals as president included reducing the company’s dependence on in-house projects to diversify the business and create advancement opportunities. This strategy has led to a varied mix of customers and projects. In the past five years, about 45% of R.D. Olson’s work has been in hospitality, including new hotels and renovations. Approximately half came from market-rate and affordable multifamily housing, assisted living, and student housing, with the remaining 5% dedicated to special projects such as higher education and community venues. Repeat customers constitute 77% to 80% of the company’s annual business.
The company has expanded its operations across Southern California, from Santa Barbara to San Diego and from the coast to La Quinta. Its Northern California office focuses on projects in the wine country. Wilhelm stated that two key priorities driving current growth are succession planning and the increasing number of projects in its pipeline. The company, which employs over 100 people, plans to add 15 to 20 more employees in roles such as project engineers, assistant superintendents, and accounting and human resources staff within the next two months.
To prepare for potential material price increases, R.D. Olson Construction is actively procuring and warehousing products. Wilhelm mentioned that some developers are also aiming to start projects before construction activity intensifies leading up to the 2028 Los Angeles Summer Olympics. Looking ahead, as R.D. Olson approaches its 50th anniversary, the management team has developed a 10-year growth plan centered on diversification, fostering repeat customer relationships, promoting from within, and comprehensive succession planning. Wilhelm, who has been with the company for over 32 years, expressed intentions to remain involved for the foreseeable future, aiming to reach the 40-year milestone and potentially the 45-year mark in a leadership capacity.
