A new $50 million headquarters for the hometown, nationally known Carson financial services group is slated to rise on former west Omaha farmland.
The six-story glass facility will be a northern anchor on the broader 500-acre Heartwood Preserve redevelopment site. It will feature high-tech and social amenities the company expects will attract talent to fuel rapid growth.
Positioned on eight acres southwest of the busy 144th Street and West Dodge Road intersection, the future office building’s fitness center, health food cafe and decks will be visible to passing motorists.
A driving force behind the project — which will benefit also from the Heartwood’s planned amphitheater, trail system, shops and housing options — is a farm kid raised near Tekamah, Nebraska.
Ron Carson, 54, said he learned early on the pain of financial ruin when his family went broke farming. He said he did all he could to avoid “scarcity” again. And after an injury ended his Husker football career, he in 1983 launched a wealth management gig from his dorm room at the University of Nebraska-Lincoln.
Now in its 36th year, Carson’s enterprise this week was named again by InvestmentNews as one of the country’s top 75 places for financial advisers to work. For the past two years, Carson Group was recognized by Inc. magazine as one of the nation’s top 5,000 fastest-growing private companies.
Carson’s projection for further growth is ambitious: He intends someday to be among Omaha’s top few largest employers.
The new home at Heartwood Preserve, formerly known as West Farm, is key to that leap.
There, Carson’s team is partnering with developer Tetrad Property Group to build and co-own a 120,000-square-foot office building. Construction is to begin this summer. It will be the first of two buildings; the sibling of 80,000 square feet is to be connected by a walkway and rise in the future. That second phase is to cost roughly $30 million on top of the initial $50 million investment.
Carson said some space at first might be leased to other tenants, but eventually the founder and chief executive of the Carson Group expects to fill the entire place with training, people and services related to his wealth management and financial technology business.
The Carson Group, a sort of three-headed machine, includes Carson Wealth, Carson Partners and Carson Coaching. Its founder, who has authored books and numerous investment articles, aims to expand his local workforce to at least 300, a 50% jump, by the end of 2020, when the first building is projected to open.
“We think in 10 years, my guess is sooner than that, we’ll have 2,000 working right here in Omaha, a tenfold increase,” Carson said.
He foresees the group’s $8.6 billion of assets under management rising to about $12.5 billion by the end of this year.
Carson, who started his career advising farmers, in 1993 added the coaching division of Carson Group that today provides consulting to about 5,000 advisers in nearly 1,300 offices nationwide. In 2012, Carson launched the partner network that now totals 108 offices. Those have their own brands but tap Carson Group’s back-end support services.
The retail component includes 18 Carson Wealth offices across the country that provide financial planning and wealth management for investors.
Additional business will come, Carson said, as “rich and tired” wealth management firms lose energy to reinvest in their operations. He believes that the financial services industry is near a consolidation similar to what happened in farming and banking.
The new headquarters, which will replace existing offices at 132nd and California Streets, should help lure workers who are also being wooed by big competitors in California and New York, Carson said.
“It’s getting people to move here from other places and saying, ‘Hey, your kids can be in this building. You can work out in this building. Look at all the great shopping.’ The lifestyle (at Heartwood) will be a major attraction.”
Omaha-based Leo A Daly was chosen from multiple architectural competitors. Jonathan Fliege and Gary Ryba said their team spent a few weeks delving into the Carson culture and structure — down to meeting the “chief comfort officer,” the founder’s dog named Nelly.
From that research emerged features such as Carson Commons, a two-story training and gathering space topped with a rooftop terrace. The Commons wing opens to outside green space where the Carson “family” can host picnics, bands and events.
The building’s glass exterior is meant “to make it as light and transparent as possible,” Fliege said.
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Jay Noddle of Noddle Cos., which oversees development efforts at the broader Heartwood site, called the Carson project a great fit. He said two other “major” office projects are close to announcement as well. Applied Underwriters is the corporate anchor on Heartwood’s southern side near Pacific Street.
Zach Wiegert, principal of Tetrad and Goldenrod Capital Partners, both part of the development team, said he looks forward to the new Carson home setting the pace for surrounding development and job growth.
“We are confident their new headquarters will provide an ideal platform to attract, retain and inspire its world-class employees,” he said.
Fortune 500 and 1,000 companies in Omaha
The Omaha area is home to 10 companies among the Fortune 500 and 1,000.
Berkshire Hathaway
Fortune rank: No. 3 with revenue of $242.1 billion; down from No. 2 last year. First cracked Fortune list in 1989 at No. 205.
History: The holding company of large- and medium-sized firms and investments has grown largely from the singular wisdom of Chairman and CEO Warren Buffett. It started as an investment pool of family and friends in Omaha in the mid-1950s. In 1965, Buffett bought the textile company that gave Berkshire its name. (Ironically, he later called it his worst investment.) His philosophy of buying successful companies with firm niches and keeping leadership in place has achieved returns well in excess of the stock market. The move into insurance was key, as Buffett uses premium reserves available for investment to fund additional purchases. Forbes notes that Berkshire now generates nearly three-quarters of its revenue from its non-financial operating businesses. At 87, Buffett is the oldest CEO of a Fortune 500 company. The company has maintained its offices at Omaha’s Kiewit Plaza since 1962.
Aflac
Fortune rank: No. 137 on revenue of $21.7 billion; down from No. 126 from last year.
History: Founded in 1955 as American Family Life Insurance by John Amos and his brothers Paul and Bill in Columbus, Georgia, Aflac pays benefits when people are sick or injured. It gained wider recognition starting in 2000 with a marketing campaign using a duck that announces its name. In 2002, Aflac moved its legal domicile to Nebraska for tax reasons and located a regional office in Omaha, although its main offices remain in Georgia.
Union Pacific
Fortune rank: No. 141 on revenue of $21.2 billion; up from No. 143 last year. Listed each year since non-manufacturing companies were added to the list in 1995.
History: The company was created by the 1862 Pacific Railway Act, an act of Congress that called for construction of a transcontinental rail line from the Missouri River to the West Coast. The first track was laid out of Omaha in 1865, and U.P. grew into a national icon. Multiple mergers over 150 years helped U.P. amass the nation’s largest rail network, with operations in 23 western states and prime rail connections into Mexico. In 2004, the railroad opened a new 19-story headquarters downtown that serves about 2,900 of the company’s 42,000 employees.
Pacific Life
Fortune rank: No. 313 on revenue of $9.5 billion; the same ranking as last year.
History: Founded in 1868 in Sacramento, California, as Pacific Mutual Life Insurance Co., the company’s life insurance, annuity and other financial products pay $2.3 billion in benefits each year. Although its main office is in Newport Beach, California, in 2004 Pacific Life moved its legal domicile to Nebraska for tax reasons and now has a regional office in Omaha’s Aksarben Village.
Peter Kiewit Sons’ Inc.
Fortune rank: No. 339 on revenue of $8.7 billion; down from No. 324 last year. Made its Fortune debut in 1991 and since 1998 has been listed every year but one. Is privately held but qualifies for the Fortune list because it publicly reports revenue.
History: Three sons of Peter Kiewit took over their father’s Omaha construction company, with the youngest, also named Peter, credited with turning it into one of the nation’s largest. The company took off while building military installations during World War II and the Cold War. It also built more miles of Interstate system than any other contractor, causing Fortune to dub Peter Kiewit “the Colossus of Roads.” Today, it is one of the largest employee-owned firms in the world and one of only a handful of construction companies big enough to take on billion-dollar projects.
Mutual of Omaha
Fortune rank: No. 337 on revenue of $8.7 billion; up from No. 342 last year. Made its debut in 1995, dropped off in 2006 and 2007, but solidly on the list since.
History: Got off to a humble start in 1909 as the Mutual Benefit Health and Accident Association, initially struggling to attract policyholders. Under the leadership of Creighton medical student C.C. Criss and later V.J. Skutt, it grew and by the 1950s had emerged as a leading health and accident insurer. The name was changed to Mutual of Omaha in 1962, and a year later it became a household name with sponsorship of the popular “Wild Kingdom” TV show. The company rebranded its familiar Native American head logo in 2001, expanded into banking in 2007, and renewed its commitment to its midtown Omaha headquarters by developing the mixed-use Midtown Crossing.
TD Ameritrade
Fortune rank: No. 630 on revenue of $3.7 billion; up from No. 674 last year.
History: Founder Joe Ricketts saw an opportunity in 1975 when the Securities and Exchange Commission eliminated the practice of fixed brokerage commissions. Ricketts’ firm, First Omaha Securities Inc., began offering discounted commissions and helped usher in a new era of investing, coupled with technology that evolved from touch-tone phones to the Internet. Forty years later, TD Ameritrade has more than 11 million client accounts with more than $1.2 trillion in assets and custodial services for more than 6,000 independent registered investment advisers. Clients trade more than 940,000 times each day.
Valmont
Fortune rank: No. 782 on revenue of $2.7 billion; up from No. 804 last year.
History: In 1946, Robert B. Daugherty spent nearly his life’s savings — $5,000 — to buy a small manufacturing company on a farm near Valley to build farm elevators. Years later, with the invention of center-pivot irrigation, Valmont found its niche. It then expanded into steel pipe and tubing manufacturing for irrigation systems and other industries. Through acquisitions and new construction, the company grew to be a global player in certain segments of the agriculture, communications and utilities markets. Today, Valmont’s worldwide operations are constantly looking for opportunities to expand its four business sectors: engineered support structures (steel and aluminum poles for traffic lights, street lighting, etc.); utility support structures (poles for electrical transmission lines, etc.); irrigation; and coatings (galvanization).
cindy.gonzalez@owh.com, 402-444-1224