Sunday, July 8, 2012

Perini Spinoff Coming To Chicago To Reposition Distressed Developments

Four top executives have amicably parted from Sylmar, California based Tutor Perini Corp. subsidiary Perini Building Company to form a new construction business focused on acquisition and repositioning of distressed commercial developments The quartet is partnering with Portland, Oregon based venture financer Bighorn Capital in the creation of Las Vegas based Caspers Construction Company LLC. According to Caspers new President Pat Hubbs, “Our goal is to generate $400 million in revenue within the first 12 months.”

The new business is named after departing Perini Building CEO Mark Caspers, and he and Hubbs are joined in the new venture by former Perini executives operations vice president Joe Miller and general counsel Scott Ryan. “We will be looking at mostly private negotiated work in the residential, hotel, office and retail markets, as well as data centers,” Hubbs explained. The new design-build-development firm will be 100% turnkey. “We will be fully integrated handling everything from estimating and design to construction and development in house,” according to Hubbs.

Founded in 1894, Tutor Perini started this year with an annualized revenue rate of $3.65 billion. The four departing executives have been involved in construction of such major projects as Las Vegas’ Cosmopolitan and City Center, and Queens, New York’s Aqueduct Casino. Tutor Perini does not expect direct competition from Caspers Construction.

Though it will have its origins in Las Vegas, Caspers Construction has already announced plans to expand during first quarter 2013 into the Chicago and Miami markets, focusing on properties in the $40 million to $150 million range, with financial backing from Bighorn Capital. The founding executives of Caspers Construction predict annual profit growth of 10% to 15% over its first five years.

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