IRVINE — R.D. Olson Construction, based in Irvine, is preparing for a new period of substantial growth, with expectations for its annual revenue to climb by 20% to 30%. This projected increase comes as developers initiate projects that had been postponed due to high borrowing costs and uncertain construction prices, according to company President William Wilhelm.
Wilhelm took the helm as president in 2014, when the contractor and construction management firm reported annual revenue around $60 million and relied on its sister company, R.D. Olson Development, for approximately 80% of its projects. More than a decade later, R.D. Olson Construction’s yearly revenue now spans between $250 million and $345 million. Its reliance on R.D. Olson Development, which focuses on luxury hotel development, has significantly decreased, now accounting for only about 8% to 12% of its business.
Wilhelm indicated that one of his initial objectives as president was to lessen the company’s dependence on internal projects. He stated that he “recognized the opportunity to grow the company, create advancement opportunities from within and diversify the business to better navigate market fluctuations.” This strategy has allowed the firm to broaden its clientele and project portfolio. In the last five years, roughly 45% of R.D. Olson’s work has involved hospitality projects, including new hotels and renovations. Another 50% came from market-rate and affordable multifamily housing, assisted living facilities, and student housing. The remaining 5% includes specialized projects in areas such as higher education and community venues. The company also maintains a strong base of repeat customers, who make up between 77% and 80% of its yearly business.
Several key projects are currently fueling this anticipated growth. In Sedona, Arizona, R.D. Olson began construction in September on the $116 million Senoa Resort and Spa, a 70-room, villa-style wellness resort expected to open in late 2028. This development includes 29 freestanding buildings, a 5,500-square-foot spa, a two-story restaurant, and 3,200 square feet of meeting and event space. Closer to home, the company broke ground in January on 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. Additionally, R.D. Olson has started work on a $30 million hotel renovation in Anaheim and is transforming the Hotel Palm Springs into an upscale boutique hotel. Wilhelm commented that “What makes this growth particularly compelling is the diversity and sophistication of the work.”
The company has also expanded its operational footprint across Southern California, from Santa Barbara to San Diego and from the coast to La Quinta, with a Northern California office focusing on wine country projects. Wilhelm noted that succession planning and an increasing pipeline of projects are driving the company’s growth. R.D. Olson, which employs over 100 individuals, plans to hire 15 to 20 more employees in roles such as project engineers, assistant superintendents, and staff for accounting and human resources over the next two months. The average employee tenure is approximately 12 years.
To prepare for potential material price increases, Wilhelm stated, “We’re procuring product as fast as we can now,” including taking possession of and warehousing certain products. He also mentioned that some developers are aiming to commence projects before construction activity intensifies ahead of the 2028 Los Angeles Summer Olympics.
Founder Bob Olson, who established his namesake contracting company in 1979 and remains chairman, described Wilhelm as having “incredible tenacity.” Olson stated that Wilhelm “has been a critical part of the culture at RDOC to be the best in what we do,” and highlighted the company’s focus on delivering quality and reasonably priced hospitality, multifamily, and assisted living developments throughout Southern California. Wilhelm, who joined R.D. Olson over 32 years ago as a project engineer, expressed plans to continue with the company, looking forward to reaching his 40-year and possibly 45-year milestones. As the company approaches its 50th anniversary, the management team has spent the last five years developing a 10-year growth plan, emphasizing diversification, repeat customers, internal promotion, and succession planning, aiming to position the company for its 75th anniversary.
