After 50 years, Downing Construction still planning for the future
KENT DARR Sep 28, 2016 | 9:24 pm
3 min read time
736 wordsBusiness Record Insider, Real Estate and DevelopmentJustin Brown wasn’t sure he was passing muster with Bob Downing during an interview 10 years ago to join the construction company Downing founded in 1966.
Last week, when the Indianola-based company celebrated its 50th anniversary, Brown and Joe Butler were announced as new partners, setting a course to buy the firm over the next several years from current owner Denis Frischmeyer.
Downing built a reputation as a homebuilder, and like any good construction manager, he rarely set out without a plan. The ownership succession of the company — which still wins top Warren County homebuilder awards though it’s a rare day that the company steps back from its busy commercial schedule to build a house — has followed Downing’s blueprint as well.
This is a succession with some interesting twists.
Frischmeyer was a local banker specializing in commercial loans when he caught Downing’s attention. At first, their relationship was that of a banker trying to recruit a client.
Downing was going through the reception line at Frischmeyer’s wedding in 2001 and told the newlywed, “I have a job opportunity for you.”
Downing was looking for someone who could take over the company in a few years, before he turned 60.
“Bob was the last person I saw walking out of the church,” Frischmeyer said.
They formed an informal partnership.
Frischmeyer started out as operations manager. Over the next 15 years, they did not have a disagreement. Frischmeyer also changed the focus to commercial construction from homebuilding. He bought the company over a period of 10 years.
The switch to commercial construction represented a big change for Downing, an entrepreneur from the time he arrived in Indianola to attend Simpson College. At one time, he also ran an insurance business.
Downing said that over the years, his company built about 1,200 homes. The most he did in one year was 60, but that was before residential construction tapered off during the high-interest-rate days of the 1980s. “We were doing about anything we could find to do,” he said.
While in college, he would buy houses, do some repairs and the sell them. He also sold insurance.
Then, with two carpenters on staff, Downing Construction built six houses and a 14-unit apartment building. Downing said his contribution to the carpentry work was to help set trusses. Much of the work was performed by subcontractors.
Downing said he wanted to “build everything in the county that would help them” with housing.
When Frischmeyer joined the company, he wanted to focus on commercial development.
“If we were going to grow the company, that is where we had to get to,” Frischmeyer said. Besides, “business owners are fascinating to me,” he said.
The company started building Hy-Vee Inc. stores, developed a specialty in dental clinics and performed work for Simpson College. It has worked with Ewing Development of Pella on the senior community at the former Rice Field in Beaverdale.
Downing Construction has been the general contractor for the 100-acre-plus Summercrest Hills development in Indianola, responsible for a senior community, medical and dental clinics, every commercial building, in fact, with the exception of a YMCA and a credit union.
Frischmeyer also came on board with an exit plan in mind. He wanted a new ownership team in place by the time he turned 50, which will happen on Jan. 5. Downing, by the way, turns 76 in October.
That brings us to Brown, 34, and Butler, 35. Both have engineering degrees from Iowa State University, both call Indianola home. Brown wanted to go to work for Downing because of the company’s reputation. Butler grew up in a family of builders. Downing was a likely place for him to land.
Brown said the company acts as “stress relievers” for owners. Before he got the job, Brown had to overcome the stress of the interview with Downing.
“When I interviewed with Bob, I didn’t think I was going to get the job,” Brown said. For his part, Downing said that because he had never interviewed for a job, he probably wasn’t very good at leading one.
Butler had interned with the company while attending Iowa State.
Both say they have been well tutored by Frischmeyer.
“Everything starts with the business relationship and helping them solve whatever their problem is. Whatever it is, if they want a coffee, we’ll get them a coffee,” Brown said.
Joe Butler, Denis Frischmeyer, Justin Brown |