Mark of Exxellence

Bellingham’s Global Construction Company,
Exxel Pacific, Does It All, and Then Some

by Michael Barrett

Up and down the coast, a common sight at many a construction camp may be the 50-foot-long white trailers with the three magenta slant-topped vertical bars and words, tall and in black, saying, “EXXEL PACIFIC.” This denotes that the Bellingham-based general contractor is in charge.

Most of these sites are not puny. Over its lifespan of 14 years, Exxel Pacific has assembled quite an impressive portfolio of large and attractive projects, completed or under way, from here to San Diego, Calif., to St. Louis, Mo.

What sets Exxel apart from most general contractors is its “turnkey approach,” the ability to do it all, from conception to placement of clean, white linen. The company’s many repeat customers say they really like it.

“The best example is the Staybridge Suites we do for Bass (Hotels &) Resorts,” explains Kevin DeVries, company vice president and spokesman. Staybridge is a successful hotel chain, with Exxel-built units in San Diego, Portland and Vancouver, Wash. “We truly do everything from A to Z,” DeVries continues. “It’s unique. We even order the furniture. At the end, we come into the building when it’s finished and put in the towels and sheets. Everything’s there, ready for someone to take possession.”

Exxel Pacific’s “rapid growth” — its words — started with legendary Whatcom County developer Sid Baron, a Dutch immigrant who has succeeded in a wide range of entrepreneurial endeavors since 1948. He started his development career in 1979 and built apartment complexes, Best Western motels and office complexes until he joined with Iowa native Kevin DeVries in 1987 to form Exxel Development Group. That company became Exxel Pacific, Inc. in May 1989. Two years later, Tim Spink came on board.

Spink, reared on a farm in Skagit County, brought with him extensive construction experience working for the likes of Howard S. Wright Construction. Later, he personally managed more than $175 million in contracts for two of the largest commercial contractors in California. This experience was to boost Exxel Pacific to new heights. Today, Spink serves as the company’s chief executive officer and general manager. (Another player in the Exxel story was Bellingham developer Mike Hollander, who partnered with Baron in 1980 but was bought out in 1986.)

Many of Exxel’s products are right here at home in northwest Washington. A few of the better known include: the $6.5 million Christian Health Care Center in Lynden, the $10 million Skagit Valley Casino Resort on Bow Hill in Skagit County, and the newly completed, $6.9 million Creekside Retirement Community in Burlington. In Bellingham alone, Exxel was responsible for construction, renovation or development of Fairhaven Village Inn, Holiday Inn Express, Quality Inn Baron Suites, Belle View Plaza, Pacific Meridian Retail Center, the REI store, Walgreen’s Drug Store, Hamilton Place Senior Living, Larkin Place Apartments, Marina Vista Condominiums, Birchwood Presbyterian Church and St. Paul’s Episcopal Church.

“Whatcom and Skagit counties are very competitive,” DeVries says about bidding local jobs. “A lot of companies are not so interested in going out of the area; they want to stay here, regardless of money.”

 

‘Diversification is important’

Exxel doesn’t believe in putting all its eggs in one basket, either. “Diversification is important,” DeVries expounds. He cites the kinds of projects Exxel Pacific is noted for — hotels and motels, offices, senior facilities, multitenant residential complexes, churches — and how many of them are for repeat customers.

“If the market’s down in one area, another may be up. That’s really important to us,” he says.

“We’re not really driven by the volume,” DeVries observes. “I really don’t care how big or how small we are, provided we have a good organization and we do a number of things right with a number of good people to do them. If you have the right pieces of the puzzle, it makes the job much simpler, whether it’s worth half a million or $4 million.”

The contracting firm may have grown from a mere $3 million its first full year as Exxel Pacific to more than $50 million last year, making it one of the top 10 grossing privately held firms in the county, but DeVries likes to downplay the financial success.

“Our major emphasis is always on the small project — $500,000 or so — even though we may do a lot of bigger projects, too,” he says. “If you take away St. Louis, we probably would average only $30 million a year.”

St. Louis is an anomaly. Two of the company’s first Bellingham projects were Hamilton Place and Larkin Place at Cordata, and the Southern California tax-credit builder Hamilton-Larkin hired Exxel Pacific to do several more projects for it, including the one in middle America.

“We weren’t interested in St. Louis one bit,” DeVries recalls. “But we went back there about four years ago, and the project — a $2 million expansion of a church — was very, very successful.” Since, Exxel has also completed a multitenant complex in the St. Louis area and has even opened a “satellite office” there. “The St. Louis market is very good; we fit in pretty well back there,” he adds.

“We are usually recommended by somebody along the way and that’s how we get our work: One thing leads to another,” DeVries states.

One of Exxel Pacific’s added values is its sheer size. It’s a big company, with more than 50 employees, most of them carrying a wealth of experience in building and planning. Spink and DeVries each can stand tall among the largest general contractors in the area.

The size helps it during the oft-complex, usually delayed and too-often frustrating planning and permitting processes, but in a turnkey business such as Exxel’s, that’s part of the game.

 

Concern for environment

“The biggest challenge (for a developer) can be the entitlement and permitting process,” DeVries explains. With growth-management and environmental concerns so strong, “It’s getting increasingly more difficult.”

This is especially a problem for a small developer or contractor, who must go up front with money he or she might not recoup for years. “Getting a permit for entitlement is where it nails you,” DeVries adds. “(In this state) you need substantial amounts of cash, capital and investment before you ever know whether a project will go through.”

Exxel, being diversified and large, can remain patient through these processes. “It took us over a year to get one project’s approval,” he says, but the company was busy with other endeavors at the same time.

DeVries points out that while developers are often seen by environmentalists wearing the black hats, Exxel remains “strong on environment concerns” and has “a good reputation with cities” they work in.

“We’ve done a lot of challenging projects from a wetlands standpoint,” he says. “The challenge is knowing what to expect and going in with that knowledge.”

Exxel Pacific (which, by the way, has one of the best, most informative business Web sites this writer has seen: www.exxel-pacific.com) believes strongly in the design-build, turnkey concept it has innovated in the business.

“Exxel Pacific offers clients the big picture — from concept to construction and beyond — with design-build services in all building disciplines: architectural, structural, mechanical and electrical,” it says. “(The company’s) rapid growth has largely been due to the turnkey approach we take to most construction projects. Our extensive experience in developing projects has given us an in-depth understanding of all the elements involved in creating a successful project.”

Exxel says the three elements to turnkey are: planning and assistance, integrated design and construction, and complete project scheduling and coordination. That’s a lot to ask from one company, but Exxel goes farther.

“Our development experience and belief in a turn-key approach means we can take clients far beyond the basics of traditional construction,” Exxel Pacific states in its comprehensive Web site. “Our preconstruction services include analysis of pro-formas and evaluation of marketability. In addition, we supply full development management and consulting services and, following the project completion, can provide comprehensive property-management services.” Add to that the company’s propensity to complete the job with linens in all the bathrooms.

In short, Exxel excels in every way.

 

Who Runs Exxel Pacific?

Exxel Pacific, Inc. of Bellingham was founded in 1989 by Sid Baron and Kevin DeVries. Tim Spink, now chief executive officer and general manager of the company, joined it in 1991.

Following is a thumbnail sketch of each of the three principals in the firm:

Sid Baron, 71 this month, is president and chairman of Exxel Pacific. He immigrated from the Netherlands in 1948 and has been a successful entrepreneur in electronics, retailing, telecommunications systems, a travel agency, electronics manufacturing, an FM radio station, equipment leasing and real estate development.

According to the company, “His 40-plus years of business experience are marked by an uncanny sense of opportunity and timing and a conservative approach to financing and risk.”

Baron began his development career in 1979, building an 84-unit apartment complex, followed by a 67-unit Best Western motel in 1982, another 58-unit motel in 1984 and a 33,000-square-foot office/retail complex in 1985. Other development projects included a build-to-suit restaurant, nearly 200 apartments in three complexes and an 86-unit Quality Inn Baron Suites hotel. He also has constructed another 80-unit motel and a resort-condominium complex.

In 1992, Baron was recognized for his accomplishments in business and contributions to the community when he was named Whatcom County’s Business person of the Year, a selection made by a committee of business leaders chosen by Whatcom County Business Pulse magazine.

He and his wife, Margaret, live in Lynden where they have raised six children.

Tim Spink, 42, Exxel’s chief executive officer. Reared on a farm in Mount Vernon, Skagit County, Spink earned his bachelor of science degree in building construction management from the University of Washington.

After graduation, he worked two years for Howard S. Wright Construction, one of the largest contractors in the state, then moved to San Diego where he worked for two of the largest commercial contractors in that area, personally managing over $175 million in construction contracts.

His experience ranges from hotels, office buildings, major retail facilities, restaurants, military facilities, hospitals, apartments, shopping centers and multistory/mixed-use complexes, according to Exxel Pacific. He joined Exxel in 1991, assuming day-to-day operations management and new-business development.

Spink and his wife, Lori, have two children and live in Bellingham where they are active in church and community activities.

Kevin DeVries, 37, Exxel’s vice president. A native of Iowa, DeVries graduated from Dordt College in Sioux Center, Iowa, earning a bachelor of arts degree in psychology with an emphasis in business communications.

DeVries started with Exxel in 1985, working to lease retail and office space in a 33,000-square-foot commercial center and was actively involved in the planning and development of Bakerview Terrace.

In 1987, he joined with Sid Baron in forming Exxel Development Group, the precursor of Exxel Pacific, which they formed together in May 1989. As a partner in the development company, DeVries played a key role in developing apartment complexes, hotels and motels, and condominiums.

He lives in Lynden where he’s very active with youth activities through his church.