TD Ameritrade builds on Omaha ties

Two years ago TD Ameritrade asked a developer to construct an office building in the Old Mill area that the company would lease as its headquarters.

But the developer went out of business, and the financial turmoil that began in late 2008 unsettled the marketplace and altered the plan. Instead, TD Ameritrade will own the headquarters, paying the $130 million price tag out of its cash flow.

In fact, the Omaha-based company has been making enough profit every three months to pay for the building, free and clear.

“We've got a lot of cash,” said President and CEO Fred Tomczyk. “We've just grown so much. To create a campus in Omaha made the most long-term sense. This is the final piece. It's going to change the visual landscape of west-central Omaha.”

While many investors lost money during the stock market “correction” of 2009, discount brokers like TD Ameritrade benefited as people used their services to find information and to make investments and trades.

Omaha is home to 2,000 full-time, part-time and contract TD Ameritrade employees, about half of them working in three leased buildings just across 108th Avenue from the construction site, at Farnam Street. When the new headquarters opens in the spring of 2013, the work force will come together for the first time since the company's early days.

“We've been sort of nomads throughout the city of Omaha,” said William Gerber, chief financial officer.

Founded in 1975 by Joe Ricketts, the company also has space at Bellevue's former Southroads Mall, at 102nd and F Streets and at 11218 John Galt Blvd. Those offices will close as employees move into the Old Mill campus, which will have room for an additional 400 employees.

Wednesday, about 120 people attended a groundbreaking ceremony to mark the official start of construction of a 12-story office tower and attached two-story pavilion. That's about 475,000 square feet, or about the size of eight football fields.

The project originally was estimated to cost $80 million, but enhancements during the planning stages added to its scope, Gerber said.

He and Tomczyk said the company could decide to sell it and occupy it under a lease in the future if that makes business sense.

In any case, Tomczyk said before the groundbreaking ceremony, TD Ameritrade's attachment to Nebraska is growing as the company expands, noting that more than 1,000 employees are volunteering at the Special Olympics under way in Lincoln.

“This is more than about the construction. It's about our commitment to the community,” he said.

The firm commitment to Omaha is important because other local startup companies, including Level 3 Communications and First Data Resources, eventually moved their headquarters out of state.

Concern that TD Ameritrade, whose biggest shareholder now is Toronto Dominion Bank rather than the Ricketts family, would do the same increased after Tomczyk became CEO. His primary residence is in New Jersey, where TD Ameritrade has executive offices.

But Tomczyk said the company is here to stay, and he frequently visits Omaha to oversee its operations.

Roger McFarland, an architect from the St. Louis office of HOK, said his team designed the new building to fit TD Ameritrade's functions.

The structure will have lots of natural light and fresh air, open work areas and floor plans, he said — a great place to work as well as a great building, McFarland said.

He expects the building to earn a platinum Leadership in Energy & Environmental Design rating from the U.S. Green Building Council. The design features efficient windows and mechanical systems, nearby planted areas, recycled building materials, solar panels and other energy-saving elements, as well as backup electricity and other security measures.

Lorne Hurov, managing director of TD Ameritrade's real estate division, said concrete removed during the project's demolition phase, which began last fall, was ground up and used as fill during site preparation. Carpets will have recycled fibers, he said, and interior paint will emit no fumes to bother employees.

During the groundbreaking ceremony, Gov. Dave Heineman said TD Ameritrade is “one of Nebraska's most successful home-grown businesses.”

“They're a leader, and we're pleased to have them right here in Omaha,” he said.

Mayor Jim Suttle said the company is “an outstanding corporate citizen,” and the construction jobs created by the project are welcome, as is the company's own success.

The project is “a positive sign that our city is on the path to recovery,” Suttle said.

The site already is starting to bustle.

In the two years since TD Ameritrade announced its plans, the property has been cleared of most of the low-rise office buildings built there decades ago. A two-story dirt pile is settling the soil in preparation for foundation work later this summer. Cranes are being assembled.

A poster of an architect's drawing of the building is in place along 108th Avenue, which is narrowed for construction work.

Kiewit Building Group, the project manager, said the construction sector in Omaha had a 28 percent unemployment rate in March. This project will consume 900,000 hours of labor, or the equivalent of 433 people working for a full year.

Besides Kiewit, about 30 subcontractors will work at the site, with total peak employment between 400 and 450 people.

TD Ameritrade has about 5,200 employees nationwide, including more than 4,000 investment brokers.

Contact the writer:

444-1080, steve.jordon@owh.com

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