Tofel Twins Re-Engineer ‘Family’ Construction in the Southwest
With a background in microchip development and the Gemini space program, twin brothers Steve and Rich Tofel are not your conventional building contractors. They’re both engineers and likely those who knew them in college in the 1960s would never have thought they would be founders of a family-owned and operated real estate development company with customers throughout the southwest.
Yet, that’s exactly what these two unique individuals have done.
Since 1984, Tofel Construction, LLC has built multifamily homes and small commercial projects, and more recently hotels. The company has successfully completed many market rate and affordable projects, including those funded by HUD grants, tax credits and discretionary city and county block grants for thousands of individuals and families.
They’ve built their business with a deep-seated awareness of their roles in the community to provide homes for those less fortunate and the elderly, alongside a commitment to their valued employees, many of whom have been with them through thick and thin.
Cosmos, Circuits and Construction
When they were 42 years old, Steve and Rich founded what used to be known as T.A. Construction Co., Inc.
Both had graduated from the University of Arizona in 1964 with degrees in engineering: Steve with a bachelor of science in electrical engineering and Rich with a bachelor of science in aerospace engineering. They spent time applying those engineering skills for a number of years.
Steve spent 10 years as a sales engineer in the early days of the integrated circuit industry, followed by five years managing a tennis club/resort. Rich worked on early space mission programs, such as Gemini human space missions and related projects. He and his family then moved to Vail, Colo., where he developed and operated a hotel, followed by numerous commercial developments.
Both were involved in commercial development in Tucson until the Tax Reform Act of 1986 came into effect, after which point they opted to focus entirely on the third-party construction of luxury homes and commercial projects.
Worst Experience of My Life
In 1991, Steve worked on his first large multifamily project with the late Jack Wallick, who was President of Columbus, Ohio-based Wallick Construction Co. According to Steve, the project turned out beautifully and was completed for under $42 per square foot and on time—though it was a very difficult project with respect to management and finances.
He quickly learned that while multifamily development seems like it’s similar to building a single-family home, it is, in fact, very different and technically much harder.
Steve talked to Rich, who was a passive partner at the time, and told him that it was the worst experience of his life, declaring, “I am never doing another multifamily project again.” Rich’s prudent reply started with two questions: “Did you learn anything?” (yes) and “Will you make the same mistakes again?” (no). Rich’s conclusion is obvious in hindsight: “You just paid a really high tuition to the school of hard knocks—why would you let that go to waste?”
Shortly thereafter, Rich became an active member of the management team as the Chief Financial Officer. For the next 18 years, Steve and Rich focused on multifamily construction. A permanent joint venture partnership was formed between T.A. Construction and Wallick’s company in 1998, and the business was renamed to TA-Wallick Construction.
The partnership was dissolved in the early 2000s after Jack Wallick passed away. Recalling his good friend, Steve adds, “We owe a great debt to Jack and his family. He was instrumental in helping us get our feet on the ground and building the brand we have today.”
Steve and Rich reorganized the company as Tofel Construction with an eye on employee ownership. At the time, the company had about 40 employees—and many of them had been with the company for a decade or more. To honor that devotion, the owners gave some key employees a percentage ownership. Their objective was to create a great place to work with ample opportunity to grow professionally, feel appreciated and make a good living.
Next-Gen Investment
Tofel Construction has been and likely always will be a family operation. From inception, Steve and Rich have had their dad, Joe, running the company’s field operations.
More recently, the company has begun transitioning leadership from Steve and Rich (both 75) to Jim Tofel (Rich’s son) and David Dent (Steve’s son-in-law). Rich recently retired and Steve works part time, though both remain involved in the company’s operations.
David joined the company in October 2000. With a bachelor’s degree in materials science and engineering, David had worked in the field of materials research for three years. He shifted to construction when he was offered a job with Tofel Construction as a Superintendent/Project Manager. He then created and headed up Tofel Construction’s Development Services Department, handling all estimating and project development coordination with customers, which resulted in estimating over $200 million in successfully completed work. From 2005 to 2010, David went from Project Manager to Senior Project Manager, responsible for over $100 million in completed work. In January 2014, David was once again promoted to his current position as Vice President of Operations.
In 2001, Jim joined the company. When he was 14, Jim worked as a laborer for his grandfather, then moved on to pursue different career goals after high school. He graduated with a Bachelor of Science degree in electrical engineering, and like his father and uncle, eventually chose to work outside of the engineering profession. Jim worked for Accenture for over eight years and then at a small software company for a few more. In 2002, he joined the family company. He worked as an Assistant Superintendent on a project for the first two years, and then moved to estimating and sales.
Today, Jim is responsible for sales, estimating, marketing and all pre-construction services. Jim says, “We were brought on as part of our family’s succession plan. Dave’s strength is on the delivery side. Mine is more on the sales. Eventually we’ll be the managing members of the company.”
Though they didn’t anticipate how the company would grow when they began over 30 years ago, Rich and Steve are very proud of the amazing growth and success of the company.
Rich adds, “We’re blessed to have an exceptionally talented next generation that we’ve carefully groomed to take over, carrying on our work with integrity and commitment.”
A Higher Standard
Currently, Tofel Construction has 59 employees who provide design and value-engineering support during the pre-construction phase, and high-quality, punctual, efficient construction services through project completion. Since 1998, the company has completed 115 multifamily projects. Notably, Tofel Construction is responsible for the Marist on Cathedral Square project in downtown Tucson, with the rehabilitation of the three-story adobe Marist College Building originally built in 1915, and the construction of a new seven-story building a block away. When complete, the project will provide a total of 83 affordable residential units for seniors.
In recent years, the company made a strategic decision to branch out both geographically and market-wise, managing hotel and small commercial projects such as medical buildings, restaurants, retail establishments and religious structures.
Steve sums up the company’s culture and business focus: “Construction is a business of relationships—with our customers, partners, subcontractors and employees. We work very hard to excel at those relationships. We want this to be a company where our employees feel valued and enjoy coming to work each day. We want to help our customers be successful and help them achieve their goals. This is accomplished by meeting our own commitments, holding everyone to a high standard of integrity.”
Currently, Tofel Construction LLC is licensed to work in Arizona, California, Nevada, New Mexico and soon in Utah. Not all of its works, though, are focused on profitable ventures.
Building Safe Havens
The team at Tofel Construction has been a part of the Tucson community for more than 30 years, both in a business sense and on a personal level. Given their success in multifamily construction, it’s no surprise that the Tofel family focuses on affordable housing through community activism.
Most recently, Steve organized the construction community to help the Sister Jose Women’s Center (SJWC) build a new facility. SJWC is a safe haven for single, adult, homeless women throughout Tucson. The old shelter was a small, 750-square-foot house with very limited capacity. There had always been a much greater need than could be met in the house.
Steve learned about the project when his wife, Sallie, asked him to inspect the new building during the purchasing phase. He immediately became involved and provided needed guidance from project inception to completion.
Through his network of colleagues and partners in the construction community, Steve called 53 contractors in the area to provide products and services for the project. Fifty-two of them responded with labor and materials, including building materials, paint, mechanical, electrical and plumbing systems and even rain gutters. These companies either completely donated or greatly reduced their costs for materials and labor. The building was completed in 2017 for well under $150,000, saving the SJWC an estimated $350,000 in anticipated costs.
“Prior to this project, I’d never been involved with fundraising to this level,” adds Steve. “I was completely staggered by the generosity of our community. Their support made a huge difference on this project.”
The new 9,000-square-foot facility is able to support the 80 to 90 women who utilize the shelter daily, and sleeps up to 40 at night. The shelter includes a community room, sleeping rooms, consultation areas with computers, laundry and toilet facilities, a commercial kitchen and administrative space.
Steve and Rich have embedded that community connection culture into every member of their family and their employees. They live by the philosophy that those who work hard and are fortunate to succeed need to give back to the community so that others may have their own opportunities.
He and his family are currently involved in another community project for Veterans First, Ltd., an organization focused on provided living space for homeless female veterans and their families. As sponsors, Tofel Construction and many other contractors are helping to design and build a 10.5-acre campus with a healing center.
When asked about the legacy he and his brother have created through Tofel Construction, both in the construction industry and in the community, Steve is still amazed at what’s been accomplished. Looking back to the founding of the company, he says, “I was just trying to make a living. It’s been a great ride and we’ve had some great opportunities because of friends, family and colleagues. I’m very proud of the next generation that is taking charge and look forward to what they can accomplish over the next 30 years.”