Despite a general slowdown in the Chicago-area construction industry, a young firm headed by two brothers continues to grow while earning rare raves from customers.
The raves range from corporate giants such as Du Pont Co. to modest non-profit organizations such as the newly formed Women`s Treatment Center for pregnant substance abusers.
The growth rate speaks for itself.
Founded in 1979 by president William B. Keeley, 33, as a custom home builder, Keeley Construction Co. in recent years has concentrated on rehabbing and retrofitting outmoded, often oversized commercial and industrial properties no longer suitable for single-use owners. The firm also has become known for its custom retail and office buildouts (interior remodeling and modernization).
Since 1985, the year vice president John T. Keeley, 31, joined his brother in the business, the company estimates it has completed 3.05 million square feet of executive offices, warehouses, industrial plants, stores and retail showrooms.
Although conversions from single-user to multi-tenant buildings has been a specialty, the firm says its average job size is 100,000 square feet and ranges from as little as 4,000 to as much as 1 million square feet.
”I`ve been a project engineer for a number of years, but these guys are probably the best I`ve worked with on any project of any size anywhere,” said Nazim S. Hally, a Wilmington, Del.-based area engineer for Du Pont. ”This is an outstanding company.”
Hally is assigned to service new facilities of the Plastic Recycling Alliance, a limited partnership of Du Pont and Oak Brook-based Waste Management Inc., which earlier this year opened a $3.5 million, 100,000-square-foot plastic recycling plant at 1700 W. 119th St.
The Chicago plant is one of five the partnership is building nationwide, with Du Pont providing technical and operations support for the joint venture. ”Keeley Construction was unknown to us a year ago when we first came to Chicago, but they were doing landlord improvements for the developer of our site,” Hally said. ”We asked them to do some initial installation work for us and were so pleased with their interest and dedication that we used them for the whole project.”
Hally had special praise for John Keeley, the project manager who provided actual on-site supervision. His brother agrees, crediting much of the company`s success in maintaining tight quality and cost controls to John`s background in mechanical engineering and finance.
”This was a difficult assignment because the process is not common and a new thing for Du Pont, but John was so intimately involved that almost by accident he became a valuable member of our team,” Hally said. ”He even helped us improve design of the recycling processes, and these are being applied to other plants.”
Du Pont`s confidence in the company prompted them to use Keeley as a consultant for the joint venture`s new 150,000-square-foot plant in Philadelphia and a third plant to be launched next year near Ontario, Calif.
”Since I`m working from Wilmington and can`t be on site all the time, the long-distance relationship has been made better because of Keeley Construction`s dependability and positive initiatives,” Hally said.
Equally enthusastic is John Smith, a former hospital administrator who is executive director of the Women`s Treatment Center, a new non-profit organization funded by the state as a pilot program for treating high-risk pregnant substance abusers and their children. Its board of directors is headed by Vincent Lane, chairman of the Chicago Housing Authority.
Financed by $3.5 million in tax-exempt bonds guaranteed by Continental Community Development Corp. and to be issued by the Illinois Health Facilities Authority, the center has purchased and is reconstructing the former Mary Thompson Hospital, 140 N. Ashland Ave., which was shuttered three years ago by a HUD foreclosure. The interior had been stripped bare, leaving significant structural damage.
Keeley is restoring and converting the 120,000-square-foot full-service hospital to its new use as a residential and outpatient treatment center. A February, 1991, opening is planned.
”I`ve worked with general contractors in Connecticut and Illinois, but Keeley is the best,” Smith said. ”He was recommended by our architect, William Pavlecic, who said Bill Keeley is an eager young guy who likes to do projects on a tight timetable.”
Keeley`s bid for the project`s first phase was accepted in August, and, Smith said, ”we were impressed. If you ask Bill how quickly can you get it done, he`ll give you specific days and do it. He said it would take 30 calendar days for the first phase, and he did it in 21 days. Other contractors wanted at least four to six weeks.”
Smith said that achievement enabled Keeley to be the board`s ”unanimous choice” as contractor for all the architectural and structural remodeling, mechanical systems, roofing, offices and reception areas.
”The difference with Keeley is he treats you like a customer,” he said. ”Unlike many other construction companies, he`s very service-oriented and extraordinarily cooperative.”
Similar words of praise can be heard from other clients.
”They understand time needs and minimize construction problems so it`s a smooth operation for everybody,” said Garry Wesp, managing partner of Crown Oaks Midwest, which used Keeley construction exclusively for its Chicago properties before they were sold.
These include the former 1.35 million-square-foot headquarters of Aldens at 5000 W. Roosevelt Rd., which has been adapted to warehouses, distribution space and offices, including headquarters of Keeley Construction Co.
The firm also has converted the former 635,000-square-foot Libby McNeil & Libby food processing plant on 119th Street to warehouse and office space.
They recently completed renovation and rehab of a 227,000-square-foot building at 4500 S. Kolin St., which Wolverine Investors sold to an industrial user.
Other clients include Freeman Companies, Solo Cup, Associated Mills, LDR Industries, IB Diffusion, JoAnna Mills, USCO Distribution, Gilbert & Bennett, NOW Products, Lewin Brothers Jewelers, Vein Clinics of America and Near North Medical Clinic.
Keeley takes special pride, however, in its custom work, including marbelized glass curvilinear partitions for Sidney S. Goldin & Son Inc. Jewelers, 645 N. Michigan Ave. The store, designed by architects Frey Gillan & Molinaro, will be featured as a cover story in Interior Design magazine early next year.
Although the construction industry often finds complaints more common than kudos, the Keeley brothers respond modestly to customer praise.
”We do our best to stick by the numbers,” Bill Keeley said. ”When we set a budget, we take it seriously and work to avoid surprises. We`ve had to establish a reputation, so we make that extra effort to build confidence and client relationships.”
Despite the success of recent years, however, the brothers anticipate a lot of extra effort in the coming year.
”We have the opportunity to double our volume in the first quarter of 1991, but after that the going will be tougher,” Bill Keeley said.
Citing declines in new construction, he said bigger contractors, who previously wouldn`t bother with his kind of projects, are now competing for the work. ”We`re counting on our track record to keep us going,” he added.
Although actively soliciting new business, Keeley said too rapid growth can be counterproductive.
”We want to control our volume and make certain we achieve further growth with cost controls, maintenance of quality and the personal, hands-on service that`s been our hallmark,” he said.
John Keeley interjects that he`s confident they can continue to achieve their goals despite his brother`s concerns.
Smiling, he offered the last word: ”Bill`s a worrier. He`s paid to be.”
