Brick by Brick

Alan Looney didn't have a how-to guide to help him build Castle Contractors LLC from a part-time operation into a multi-million dollar custom home builder. But somewhere between being an industrial engineer and medical salesman, Looney found the keys to his dream company.

Castle Contractors began in 1987 in Looney's native Texas, where he built his first home on a part-time basis while working as an industrial engineer for General Dynamics in Fort Worth. The 1,800-square-foot house was built with family financial support and sold for $200,000.

Looney was familiar with home building and knew it was what he always wanted to do; he didn't see himself as a long-term industrial engineer. House by house, the company grew to the point where Looney was straining to balance working at General Dynamics and building houses.

"I realized if I wanted to do this, I needed more autonomy," he says.

Selling medical equipment provided Looney some of that flexibility. He continued to juggle sales and construction work even after he and his wife, Heather, moved to Nashville in 1993. Heather, who had wanted to pursue a music career, now works with her husband.

"As soon as we were in Nashville, I started making plans to start the company here," says Looney.

Looney's professional background complimented Castle once the company began in Brentwood. Looney's cost analysis experience as an industrial engineer helps keep projects on schedule and within budget. Similarly, his experience in medical sales helps him promote his company and attract business.

Once in Nashville, Castle benefited from its founder's switch to full-time work and from a healthy demand for custom homes. Castle built its first Tennessee home in Kingston Springs. That project produced three clients interested in custom homes.

"Next thing you know, we were building four houses a year," says Looney.

Green Hills, Belle Meade and northern Williamson County are the primary areas Castle targets, with homes ranging in price from $400,000 to $1 million without land costs. An average Castle house costs $700,000.

In 2002, 464 homes sold for between $400,000 and $650,000 in Williamson County. Currently, there are 275 active houses in that price range on the market in Williamson County, says Molly Edmondson, managing broker for Fridrich & Clark Realty.

"I just see more activity in the lower end than in the higher end [price range]," Edmondson says. "There are more people out there in the marketplace for $450,000 to $600,000 than a $1 million-plus. That's where your demand is going to be."

That bodes well for Castle. The company reported $3.4 million in revenue in 2001 and $3.5 million in 2002. Looney projects revenue to total $4 million this year and rise to $5 million in 2004. In years past, Castle has completed an average of seven to eight homes. This year, the goal is 10 homes. Looney says that's about as much as he is willing to do per year. Maintaining high quality and attention to detail are a custom home builder's top priorities.

Other area custom home builders also think quality isn't measured by high volume.

"So much comes down to the level of involvement the builder has on the building process," says Bruce Zeitlin, owner of Bruce Zeitlin & Co.

Zeitlin targets $700,000-plus projects, a slightly higher price point than Castle. Recent projects included a $500,000 condominium renovation and the building of a $2 million home. Zeitlin completes between two and three projects a year.

"That's what I can manage and be on the job and give the level of service the client expects," he says. "I could get more business but not provide the quality."

Building a client's custom home can take up to two years. The client's expectations are high and wish lists can be long. The Looneys, Assistant Project Manager Cory Martin and Accounts Manager Carol Hashe meet with clients several times during the design and building process. One of the first things Castle provides potential clients is a 29-page, step-by-step guide on how to build a dream home.

"There are so many details in a home," says Heather Looney. "It's all an education process."

Many of those 29 steps involve input from subcontractors, which help custom builders like Castle build a good reputation. Castle works with about 30 to 40 subcontractors on projects. The same group of subcontractors help maintain a polished construction cycle.

"The only way you can get the real team effort is if you have subs that are loyal to you because you are loyal to them," says Zeitlin.

That kind of team work was noticed by Betsy Hammond, who used Castle to build her home in 2001.

"They really put a lot of work on the front end in the planning," Hammond says. "They have just great subcontractors and that makes a real difference."