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May 2, 2013

Survey: Andersen Construction

Rendering courtesy of Hewitt [enlarge]
Andersen is building the $53 million 3rd & Cedar apartment tower in Seattle’s Belltown neighborhood. The 298-unit mixed-use project is expected to be finished in May 2014.

Specialty: Construction management/general contractor

Management: Joel Rohrs, Seattle division manager; Joel Andersen, vice president; David Andersen, president

Founded: 1950

Headquarters: Portland

2012 revenues: $250 million

Projected 2013 revenues: $350 million

Current projects: 3rd & Cedar mixed-use apartment tower in Seattle; Silverdale Orthopaedic hospital/clinic expansion of Harrison Medical Center; Aegis Madison Assisted Living Facility in Seattle

The DJC asked Andersen Construction about the firm, and issues and trends in the industry. Here’s what Joel Rohrs, Seattle division manager, had to say.

Q: What types of projects will thrive in 2013 and 2014? Which ones won’t?

A: Multifamily housing and mixed-use developments are still thriving in Seattle and on the Eastside. This includes market-rate and low-income apartments. We are building developments in 2013 and 2014 that include high-rise market-rate apartments, mid-rise low-income apartments and mid-rise workforce housing apartments. Senior living is also thriving and we see it doing so for the coming four years and beyond, with an emphasis on assisted-living and memory-care units. Medical construction at hospitals and clinics is beginning to make a comeback and should become a major part of our workload in the years to come as it has for the past 30 years.

Q: What are the biggest issues facing the construction industry in the Northwest?

A: Thus far, we are seeing a very nice exit out of the market that was. To that end, the amount of skilled workforce and subcontractors to service the general contracting community is one major concern as we move forward. Additionally, there is pressure that escalation/commodity pricing will become a cost issue for general contractors in the coming months.

Q: How is your firm’s workload shaping up in the Northwest in 2013 compared to 2012?

A: Much improved. We are fortunate to have a diverse workload with a tremendous group of professionals on our staff to ensure our clients’ needs are met. We are already contracted for $125 million more than we completed in 2012, and have capacity for more work this year.

Q: Does your firm plan to enter any new markets in the Northwest?

A: We will be looking to enter the life sciences and high-tech markets in Seattle. We have had tremendous success in both of these markets over our first 63 years in other regions, but we are looking to bring our Seattle market into that mix starting in 2013 and beyond.

Q: Your firm says it excels at technically challenging projects. Can you offer an example?

A: In November of 2012, we completed the 34,600-square-foot PeaceHealth St. Joseph Integrated Cancer Center in Bellingham, which provides comprehensive care for patients (who) see cancer specialists and receive chemotherapy, radiation therapy and support services. There were many technically challenging components to this project, including the construction of three vaults using concrete at perimeter walls and ceilings. Openings were shielded using lead and borated polyethylene. Andersen also installed a TomoTherapy machine, a linear accelerator and a CT simulator.

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